“We’re not looking to maximize investment returns…we’re looking to maximize the quality of life for our clients in whatever way they interpret to be” – Harold Evensky, financial advisor
The link below is to a story about a physician operating his practice at a loss. It’s interesting to me because of the way Harold Evensky, a widely respected financial advisor with many well-deserved accolades, justified the idea of the physician continuing in practice, even if it was losing money. Mr. Evensky evaluated the activity as if it were an expense, a “given” outlay, and then did his financial analysis to see how long the physician could sustain his current lifestyle.
We’ll never know what other opportunities might have been present in this situation but I’m wondering if Mr. Evensky was asking the right questions. Instead of asking how long can the
status quo be maintained for the physician (i.e., the physician’s quality of life), what if Mr. Evensky had asked, “How might others help in this situation?” or “Can an entrepreneurial solution create a better result?” I’m thinking that perhaps an outside business advisor with expertise in physician’s practices and perhaps contacts in the medical community might have added to the dialogue. Perhaps a CFO, a marketing expert, and a junior partner could have created a solution that would serve not only the physician but also his patients, his staff, and the community. Afterall, when the physician finally does retire from his money-losing practice, what happens to the other human beings involved?
The physician’s quality of life may have been maximized but I wonder if the situation was optimized.
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