Key considerations before joining a partnership

Joining a partnership can be an exciting venture, but it requires careful consideration and thorough planning to ensure its success. Below are 10 essential factors to think about before entering a general practice partnership.

1. Review the partnership agreement

A thorough review of the partnership agreement is crucial. Make sure the document covers all aspects of the partnership, including roles, responsibilities, profit-sharing, decision-making processes, dispute resolution mechanisms, and exit strategies. Seek legal advice to ensure the agreement is comprehensive and protects everyone’s interests.

2. Shared vision and goals

Before entering a partnership, it’s important to confirm that all parties share a common vision and goals for the practice. Alignment on long-term objectives—such as patient care standards, expansion plans, and community engagement—will support a unified strategy for success.

3. Complementary skills and expertise

A successful medical practice often thrives on the diverse skills and experience each partner brings. Consider whether your prospective partners’ strengths complement your own, creating a balanced, capable team. Think about clinical specialties, patient demographics, and administrative abilities.

4. Financial viability of the partnership

Before committing, assess the partnership’s financial position. Review financial statements, projected income, expenses, and profitability. The partnership must have the financial strength to support day-to-day operations and future growth. An accountant can help you review historical accounts and financial forecasts.

5. Financial contributions and equity

Agree on what financial contributions you’ll be expected to make, and how equity will be shared. Transparency around finances—including profit-sharing, expenses, drawings, and investment—is key to avoiding misunderstandings.

6. Property ownership and buy-in requirements

Check whether the partnership owns the property where the practice operates. If it does, clarify whether buying into the property is required or optional. Understand the responsibilities and benefits that come with property ownership, such as tax liabilities and maintenance costs, and consider how this aligns with your long-term financial goals.

7. Shared values and ethics

A partnership rooted in shared values and ethical practice is more likely to last. Make sure your prospective partners align with your personal and professional principles.

8. Communication and transparency

Strong communication is essential. A healthy partnership encourages openness, where everyone feels comfortable raising ideas, concerns, and updates. Regular meetings and honest discussion help maintain clarity and trust.

9. Compatibility and trust

Compatibility and mutual trust between partners are vital. Partnerships built on respect and confidence are better placed to handle challenges and grow together.

10. Long-term commitment

Joining a partnership is a significant, long-term commitment. Think carefully about whether you—and your future partners—are ready to invest the time, energy, and resources needed to build and maintain a successful practice. Consider how the partnership fits with your professional ambitions and personal life.

Need help?

Whether you’re thinking about joining a partnership or already reviewing an agreement, we can help you navigate the financial and practical considerations with confidence.

Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk

George Crowe