What I Know Now, That I Wish I Knew When I Graduated
I graduated in 2005 with hopes of owning my own private practice because this is what I was taught would give me the most freedom and the best lifestyle. I feel my education at NSU gave me wonderful perspectives, and the faculty members were all ready to counsel. I was fortunate to find a practice in the area that I wanted to settle in, so I jumped on it. Not knowing exactly what to expect, I thought I was entering a profession where everyone had each other's back. Unfortunately this is not always the case.
I was excited to start this job and signed the first contract placed in front of me. I was advised to have a lawyer revise it but didn't because of lack of money and trust in the OD I was going to be working with. I felt like I would be insulting him if I had a lawyer look it over. I asked to be on salary plus bonuses, but he told me I would be better off with what we later agreed to. I agreed to taking home 50% of my receipts the first year, then lowering that to 33% after that. The contract stated that I was establishing my independent practice, with the "rent" being used to help pay for the overhead. The price of the practice was included in the contract with a clause that stated that the practice would be appraised each January. That price, I later found out, was a number he decided without any appraisal.
Foolishly assuming I would be buying the practice and retiring there, I also agreed to a two year, 50 mile radius non-compete clause (I live in a rural town). Not long after signing the contract, some large companies decided they wanted to build data centers in this town, so real estate prices began to rise. The selling O.D. decided to take advantage of this and raised the selling price by about $200,000. And, he was ready to sell. He has done everything he could to try to convince me that his is the best practice in the world and caries the value of his new asking price. I explained to him that I could not afford the payments that this asking price would require. He had his accountant run some numbers showing me how our combined incomes could support the payments (I was not convinced of his accountant’s calculations). Regardless, he was using our combined incomes, and not his alone. He was trying to get me to purchase my independent practice that I had established as well as his practice.
I finally convinced him to have the practice appraised by an independent appraiser. The appraisal came back lower than the initial price in the contract! He laughed at it and told me what it appraises for and what he sells it for are two different things. I decided to contact some brokers to see what rates were available to see if we could actually afford his price. They told me the practice (based on cash flow) was worth even less than the appraisal. After eight awkward months of trying to negotiate a fair price, I was getting nowhere and decided to give a letter of resignation and seek employment elsewhere.
I found a very kind ophthalmologist in a town 35 miles away who has offered me a great opportunity. When I explained to my colleague that since we couldn't come to an agreement, I would ask that the non-compete clause be reduced to a 30-mile radius. He told me that's exactly why he has the clause to keep me far enough away as to not harm his practice, and if I took that job, he would fight me. I decided to consult an attorney. He told me that only a judge can decide if a non-compete clause is valid, but courts do not look favorably on them because they hinder your ability to provide for your family. He said it may be enforceable if I set up shop across the street, but in a town 35 miles away, the clause would have a hard time standing up in court.
So, here I am now, about to accept this position in the town 35 miles away. I have been threatened of being sued. I made sure the ophthalmologist who offered me a position was aware of this situation, and he said what the attorney told me - that those clauses aren't worth the dirt under our shoes. I have decided it was worth it to me to take the risk of staying close to family and taking this job. I feel I was being taken advantage of and needed to get out of that situation. I don't know if my colleague will proceed with the lawsuit or not, but from what I understand, he doesn't have a leg to stand on.
So, what advice would I give to a new graduate? I would say to do what you feel will make you happiest. If your desire is to own your own practice - go for it! It is a tough road at first, but it can be very rewarding. I have decided that practice ownership at this point in time (it requires a lot of time) probably isn't the best thing for me and my lifestyle, and I would be better off as an employee. If you feel you would be happiest in a Wal-Mart or commercial setting, there's no shame in that. There's potentially some good money in that option. Fortunately, you have chosen a profession where you can go anywhere you want to practice and there will probably be several opportunities available. I would also advise you to have a lawyer review any contracts. It's worth the $500 or so. Lastly, unfortunately you can't trust everyone. Find a mentor you trust. There are several faculty members who would be more than happy to help. I hope this will help at least one person to realize the importance of the choices you make when starting your first job. Good luck, and may your first experience be better than mine.
Submitted by a 2005 NSU graduate. His/her identity is known to OPEP but has been kept confidential due to the circumstances involved.
