Roadmap to a Desirable Associateship

1. Roadmap to a Desirable Associateship Rob Pate, O.D. EyeCare Associates, Inc. Hoover March 20, 2008

2. Getting Started • Hopefully you’ve already started!! • Have a plan (or 2 or 3) • Put your plan in writing • Take this course seriously…if you do, the majority of your planning will be completed • Have a “mentor” review your plan and make suggestions • Take advantage of networking opportunities (make your colleagues aware of who you are and what your plans are)

3. Considerations • Can the practice sustain another practitioner? • How much do you ask for? / What’s fair? • Cost of living? • Desirability of the area? • Spousal job approval? • Fringe benefits? (Professional Association Dues, License Fees, Paid Vacation, CE allowance, etc.)

4. Finding the Right Match

5. Finding The Right Match • Three of the most common reasons given for dissolving an associateship are: • Compensation • The Associate’s Production • Personality Conflicts

6. Finding the Right Match • Finding the right match is best left up to divine intervention, however do your homework and get to know your potential employer.

7. Helpful Hints in Today’s Market • Visit numerous practices in your area/location of interest • Be prepared/willing to work in multiple locations • Don’t be surprised if you’re only offered a few days/week initially • Be prepared to display your goals/plans for growing the practice and producing revenue • Don’t burn bridges—leave all options on the table!

8. Contractual Obligations: Associateship Goals • 1. Salary—based on cost of living estimates and regional associate averages, I am seeking a starting salary consisting of 40% of professional fees generated with a $300 per day minimum. • 2. Covenant not to compete—I do not wish to move my family around, therefore I plan to practice in this community for a great length of time. If this associateship arrangement fails to evolve into a partnership, I do not want a restrictive covenant in my contract limiting my practice opportunities in this community, even if I decide to open my own practice. I agree not to practice outside of Eye Care Associates as long as I am an associate. • 3. Benefits—of greatest importance are malpractice insurance, bonus income, paid vacation, and vacation length—in that order. Of lesser importance are cost of membership in the AOA, C-E allowance, optometry license fee, and an equipment allowance for new purchases or repairs. I need no health insurance coverage; my wife has excellent benefits through her work. • 4. Hours—No Sundays. I do not mind working full Saturdays once or twice a month provided a full day off during the week. I will obviously be available for after hour emergencies.

9. Contractual Obligations: Associateship Goals • 5. Duties—I want to practice full scope optometry, putting to use all facets of my optometric education including treatment of eye diseases, contact lenses, and post-operative care. • 6. Location—I would prefer to be located at the main office as many days as possible. • 7. Term—a one calendar year contract should suffice to determine if this arrangement has long term potential. I do not wish to be locked into a salary with no prospect of annual adjustments by signing a multi-year contract. • 8. Termination—I should be able to terminate the agreement on 30 days’ notice. • 9. Disability—the definition of disability (before my job terminates) should be at least 90 days of consecutive inability to work, not 90 days total in a year. • 10. To become a partner in Hoover Eye Care Associates in the long term.

10. How to Grow Hoover ECA • Member Birmingham-Jefferson Co. Auburn Alumni Club • Member Hoover Rotary • Member Hoover Chamber of Commerce • Write monthly column in Hoover Gazette on eye related topics/conditions • Expand sports vision by… • Speaking with local high school coaches; i.e. “team eye doctor”—Hoover High, Spain Park High (I have an “in” with both schools) • screenings for youth leagues • demos on newest technologies, i.e. Nike Maxsight, Rec Specs, Polycarbonate facemask shields, etc. • My wife teaches at nearby Oak Mountain Intermediate School—another referral source from a tremendously large pool of potential patients—and an excellent place for presentations, health fairs, etc.

11. How to Grow Hoover ECA • Communicate with as many internal medicine/GP doctors about my ability to monitor their diabetic patients’ eye sight and willingness to update with a letter after these visits • Contact all local pediatricians to make them aware of my arrival and services • Coach/Be active in my children’s athletic teams to meet parents and draw new patients • Church family, friends all live within easy driving distance • Mother works for the City of Hoover in the Human Resources Department—yet another in with community leaders and employees • Mother-in-law very active in Hoover Chamber of Commerce and is Human Resource Director for Hoover based Adventure Travel

12. My Road to Associateship • Auburn Job Offer Two Years Before Graduation • Externship with Dr. Zachary Steele in Fall • Auburn doc would not return calls or emails for 3 months • Dr. Steele put me in contact with Dr. Lynn Hammonds who was looking for a new associate • Met Dr. Carl Spear at ALOA Fall Conference

13. My Road to Associateship • Visited Hoover ECA to meet Dr. Amos and staff (wrote letter of thanks and mailed the next day!!)

14. Letter of Thanks to Practitioner • Dear Doctors Amos and Hammonds, • I thoroughly enjoyed the opportunity to visit your beautiful practice this morning. Thank you both for taking the time to visit with me on such short notice. I was absolutely amazed by the size of your practice, the fluidity of patient flow, and the numerous technological capabilities you are able to utilize. What a remarkable setting to practice optometry! • I hope to stay in contact with you to discuss what the future holds for your practice and how I may fit into those plans. It would be an honor and a blessing to begin my optometric career in a practice as established and well-run as yours. I would relish that opportunity. • Thank you again for allowing me to shadow and tour your practice today. Please do not hesitate to contact me whenever it is convenient for you. • Sincerely, • Rob Pate

15. My Road to Associateship • Offered job 3 days/week plus two ½ Saturdays per month with ECA Hoover • Offered 1 day/week Chelsea Eye Care • Visited Pensacola to tour The Andrews Institute • Offered job 5 days/week at Andrews Institute

16. My Road to Associateship • To help fill my schedule 5 days/week in Birmingham, Dr. Hammonds arranged a meeting with another ECA doctor in Moody • Offered 1 day/week ECA Moody

17. My Road to Associateship • Additional Opportunities • Take over Solo Practice from retiring doc in Alexander City, AL • Join a large 4 office/5 doctor practice in Montgomery, AL • Ultimately, a piecemeal Birmingham schedule versus Pensacola was the decision

18. My Road to Associateship • Salary Comparison • Both paid daily per diem • Birmingham=$82,900 (year) • Pensacola=$104,000 (year)

19. My Road to Associateship • Bonus Potential • Hoover ECAto pay a percentage bonus on all money deposited for new patients I personally recruit into practice • Moody ECA decides no bonus structure • Chelsea Eye Care increases daily per diem in exchange for no bonus structure • 3 different locations=3 totally different agreed upon terms of payment • Pensacola offered bonus possibility in future?

20. My Road to Associateship • Cost of Living • Pensacola • 4 bedroom, 2 bath garden home=$400,000 • Birmingham • 4 bedroom 4 bath home with basement=$289,900

21. My Road to Associateship • Desirability of Area • Pensacola • Hurricanes had ravaged the area the past several years; many roads, shops, businesses never recovered • My wife would have to find a new school to teach at • No family in area • Birmingham • Hometown • Wife established, tenured teacher • Family (both sides) within 30 minutes

22. My Road to Associateship • State Boards • Florida: Roughly $3000 with three different tests requiring 3 different trips to the state (two to Tallahassee for Pharmaceutical/Law exams, one to Fort Lauderdale for practical) • Alabama: $500 written test on one Saturday in at UABSO

23. My Road to Associateship • Birmingham wins out in the end • Work Schedule • ECA Hoover: Monday, Wednesday, Friday, and every other Saturday (1/2 day) • Chelsea Eye Care: Thursday • Moody ECA: Tuesday

24. Partnership • Working towards starting full-time at ECA Hoover in summer • Five year equity earning track buying into practice through sweat equity

25. Salary?! • What’s fair? • What’s fair is what the market will bear. • Keep in mind, most practices have existed long before you were considered for associateship and will continue on with or without you!!

26. Salary?! • I’m paid every 2 weeks by ECA (Hoover plus Moody) • I’m paid a monthly bonus by Hoover ECA • I’m paid once per month by Chelsea Eye Care • My guaranteed salary for 1st year out of school was $82,900 (paid by 3 different offices) • AN INITIAL SACRIFICE FOR A FUTURE REWARD --

27. Get Started& Good luck

28. A Final Thought

29. The End