Will an ESOP lead your POH to a brighter future?

Why Physician Owned Hospitals Should Consider an ESOP

Why consider an ESOP?

Like all businesses, POHs are constantly looking for better ways to maximize revenue, ease their tax burden, efficiently manage new and existing partners, retain key staff, and strategies for succession and expansion. ESOPs impact all of these areas, but with few groups with expertise in both healthcare and ESOPs, this strategy has often been overlooked.

Exit Strategy

An ESOP is a simple and tax-efficient exit strategy for an owner to sell their shares. No need to go through a complex sales process to a competitor or private equity firm.

Legacy Strategy

An ESOP allows owners to sell their shares and remain employed in a C-level position, thereby maintaining control of the company’s direction.

Tax Strategy

An ESOP S-corporation is a more tax efficient structure than a traditional S-corp, LLC or C-corp. The tax savings will significantly increase net profits.

Section 6001 Strategy

As a qualified retire retirement benefit plan, an ESOP could remove the “physician-owned” categorization – thereby eliminating the restrictions of the ACA.

Wealth Strategy

Through the ESOP, employees at all levels will become owners and increase their wealth over time. Owners – existing and new will benefit the most.

Efficiency Strategy

An ESOP will improve employee morale and productivity while reducing turnover.

Recruiting Strategy

An ESOP will differentiate the company from all the others as it recruits top talent.

Cultural Strategy

In the current environment of wealth and income inequality, an ESOP creates an opportunity for broad ownership participation.
Exit Strategy

Exit Strategy

An ESOP is a simple and tax-efficient exit strategy for an owner to sell their shares. No need to go through a complex sales process to a competitor or private equity firm.
Legacy Strategy

Legacy Strategy

An ESOP allows owners to sell their shares and remain employed in a C-level position, thereby maintaining control of the company’s direction.

Tax Strategy

Tax Strategy

An ESOP S-corporation is a more tax efficient structure than a traditional S-corp, LLC or C-corp. The tax savings will significantly increase net profits.
Section 6001 Strategy

Section 6001 Strategy

As a qualified retire retirement benefit plan, an ESOP could remove the “physician-owned” categorization – thereby eliminating the restrictions of the ACA.
Wealth Strategy

Wealth Strategy

Through the ESOP, employees at all levels will become owners and increase their wealth over time. Owners – existing and new will benefit the most.
Efficiency Strategy

Efficiency Strategy

An ESOP will improve employee morale and productivity while reducing turnover.
Recruiting Strategy

Recruiting Strategy

An ESOP will differentiate the company from all the others as it recruits top talent.
Cultural Strategy

Cultural Strategy

In the current environment of wealth and income inequality, an ESOP creates an opportunity for broad ownership participation.

Built to Support Physician Owned Businesses

Stroudwater Associates, a leading healthcare consulting firm, and Applied Economics, a leading valuation and ESOP advisory firm, have joined forces to create the nation’s most-experienced ESOP advisory specifically for healthcare businesses.  No firm can match our deep understanding of both ESOPs and the complicated healthcare landscape including HIPAA, Stark, ACA and more.

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LEADERSHIP

Director, Applied Economics

David is a Director at Applied Economics and provides valuation and strategic advisory services to business owners, trustees, attorneys and members of boards of directors and specializes in Employee Stock Ownership Plans (ESOPs).

Opal H. Greenway

Principal, Stroudwater Associates

Opal is an accomplished healthcare and finance professional who focuses primarily on the strategic needs of healthcare service providers. An expert in valuations, mergers and acquisitions, strategy, physician compensation, and regulatory compliance, she joined Stroudwater Associates over six years ago.

Director, Applied Economics

Eric is a Director at Applied Economics and originates and manages both corporate finance and business valuation assignments across multiple industries, with a focus in healthcare services and technology.

Jeff Sommer

Managing Director, Stroudwater Associates

Jeff is the managing director at Stroudwater Associates and for over 25 years has focused on assisting clients with strategic initiatives including planning and executing major capital projects, analyzing strategic options, crafting of innovative affiliations and executing business development opportunities.

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