Group Practice (R)evolution 18 - Group Practice After Capitalism? with Donna Sky, Project Equity
“There are definitely examples of business owners that are able to reach their retirement goals and dreams, and also examples of businesses where an owner tried to sell on the open market, and they weren't able to.” ~Donna Sky
Donna Sky on Employee Ownership, Legacy, and the Future of Private Practice
Lemme ask the group practice owners a question: What’s your business plan for the end of capitalism?
OK, so we’re not quite there yet, but “something” is pushing private practices closer to the cliff’s edge of capitalism, the inevitable collapse of unbridled growth for no other reason than greed. Group practice owners who want to land safely should prepare for what comes next.
Employee ownership (EO) could be what’s next.
Donna Sky is senior manager of business and engagement and partnerships at Project Equity. This national non-profit helps business owners explore EO and build more equitable, resilient workplaces and communities.
In an age of corporatized, consolidated “wellness,” an EO allows practice owners to leave their legacy of care to those who want to nurture its next iteration.
Heads up: transitioning to an EO is not a DIY project. Having a partner like Project Equity is crucial to ensuring positive outcomes for both parties in a sale. “We really are sort of a holistic service provider in the space,” says Donna. Project Equity does everything from settling a fair price for the seller to helping buyers secure purchase funds to providing employees with guidance as they build equity and fortify their role as owners.
While every group practice is different, Donna identifies several “readiness factors” that indicate whether a business has potential to make it through the EO process:
Financial Health. Can the company show 3+ years of profitability in the last five years? Get those detailed records in order now!
Workforce Size. Regulations on who can own a practice vary state by state. Having a staff of at least 10 full-time permanent professionals can alleviate ownership restrictions.
Company Culture. A sociocracy sounds good in theory, but most EOs operate under the governance structure that was in place before a sale. A thoroughly defined set of values and practices informs future success.
“There have been a lot of success stories,” Donna says. “The first step is to think about what’s important to you and then educate yourself.”
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MENTIONED IN THIS EPISODE
GUEST CONTACT & BIO
Donna Sky is a longtime social entrepreneur and business owner who believes business can be a force for positive change. She serves as Senior Manager of Business Engagement & Partnerships at Project Equity, where she helps business owners explore employee ownership and build more equitable, resilient workplaces. She is also the founder of Love & Hummus Co., a mission-driven food company that grew into a nationally recognized brand known for its social and environmental impact