The next generation of healthcare owners may increasingly come from a wider range of professional backgrounds as aging practice owners consider succession and healthcare organizations prepare for changing demands.
The so-called "silver tsunami" has brought renewed attention to ownership transitions across American businesses. According to Chief Healthcare Executive, the last members of the Baby Boomer generation are expected to reach retirement age by 2030, with one in five Americans projected to be 65 or older by the end of the decade. The publication also reports that nearly one in five physicians were already 65 or older in 2023, based on data from the Association of American Medical Colleges.
A similar succession question is emerging among small-business owners. FOX Business reported that nearly half of U.S. small-business owners are 55 or older, while 54% have a succession plan in place, citing Forbes. For healthcare practices, ownership transitions can involve additional considerations involving regulatory compliance, patient records, clinical standards, staffing, and relationships with referring providers. Joanell Paris-Santos and Lionel White, co-founders of Urgentflex Holding, suggest that these factors may make healthcare succession a particularly specialized form of entrepreneurship.
