On the show today, I talk with Dr. Greg Magee about the nuances of taking over and managing a multi-million dollar practice. USA.gov. Placing a photograph of the new dentist prominently in the reception room also provides another form of introduction for patients. Jordon Comstock says a dental membership program can be one of the smartest business strategies you implement in your practice in 2020. It is important to ensure that you find a dental practice that has all the required documentations as this will prove ownership and authenticity. Sim- ultaneously, the patient base also must generate the revenue needed to satisfy many other commitments as well, including the debt service of the lending institution, the operation of the dental practice and the buyer`s own income. Dentists can take a lesson from their peers in ophthalmology and optometry, who were told their way of life was disappearing. Your phone is attached at the hip. Besides these helpful steps, there are other preliminary measures that sellers should undertake in advance of any sale to maximize the profitability of the new dental practice. Stop struggling silently and join the community that will change your business, your practice and your life forever. If you’re opening a new dental practice, there are many things to consider, including licenses, local requirements, supplies, insurance, infection control and OSHA, just to name a few. I know you will be pleased with Dr. Jones and will extend to her the same courtesy and loyalty that you have afforded me over these many years. Creating a stellar letter to your patients should not only explain why you’re leaving, and who the new doctor will be, but it will make them feel comfortable that their dental health is in good hands. Dentists who have hosted such cordial receptions have reported that 20-25 percent of their patients visited their offices during these events. The seller also should determine whether the potential buyer is insurable for life and disability insurance. In the event that the buyer wants the seller to remain for a time after the closing to treat patients of the practice, the seller then should be compensated. Recent Dental Practice Management articles have identified a significant number of potential problems that dental private practice appears to have with the apparent takeover by DSOs. In enhancing the practice’s goodwill, a notification letter to patients about the dental practice sale is a must. Chris Salierno, DDS, says the value of your dental practice is a whole lot more than monetary. Dr. Jones is a graduate of the University of Pennsylvania School of Dental Medicine. In particular, the seller should exercise due diligence to assure that any potential buyer is both professionally and financially suitable to take over the practice. (The photograph can be a portrait of just the dentist or the dentist with the family.) Author information: (1)Management-Institut Medizin und Zahnmedizin, Ludwigshafen. 1993 Jan-Feb;58(4):11-2. Over time, these differences allow them to build superior practices that are well run. Practices that have production in the top 10% do certain things differently than most other practices. This checklist and related resources can be used as a starting point to address many of the issues dentists encounter when opening new practices. And yet, despite how hard you work to do just that, many patients simply fade away over … Practice transition experts believe the valuation of dental practices may be negatively affected if dentists are looking to sell in the next few years. Here is a sample letter: After practicing dentistry for 35 years, I have decided to announce my retirement. Moreover, the buyer is able to pay the practice overhead and debt service relative to the purchase price, as well as earn a significant income. Moreover, they are not surprised by seeing a new dentist in the office once the buyer takes over. The staff can be particularly helpful with the transition. The system maximizes value while minimizing waste. Lean business principles for your practice. Not only is technology more accessible than ever, it shapes patient perceptions. Sign up for Dental Economics eNewsletters. They are better funded, organized, and staffed, while wielding buying power that we could never imagine in a solo practice. While the trends in dental practice values are going up, without question buyers should continue to look at purchasing a practice as a solid career strategy. The concept of “lean business” came from a Toyota manufacturing production system popularized in 1990. Is more expensive always better? Fifth, a joint announcement in the local newspaper also is helpful in involving the community in the transition. These events, which generally are scheduled on a Sunday, provide patients with an opportunity to wish the seller well and to meet the buyer and his or her family. Remember that patients don’t really care who “owns” a dental practice. Similarly, the seller also should transfer the office telephone number to the buyer to ensure that patients easily can access the dental office. So, when planning a transition, the most important element is the manner in which the patients (or the referral sources) will be transitioned over to the new owner. Get the latest public health information from CDC: https://www.coronavirus.gov, Get the latest research information from NIH: https://www.nih.gov/coronavirus, Find NCBI SARS-CoV-2 literature, sequence, and clinical content: https://www.ncbi.nlm.nih.gov/sars-cov-2/, NLM If the buyer`s deposit is nonrefundable and the buyer has obtained a written loan commitment from a lending institution, consider sending the letter of introduction some two weeks prior to the date of closing. In this letter, the buyer should mention the desire for continuing the seller`s tradition of service and detail any planned improvements for the practice, such as expanded office hours. This is particularly beneficial for those patients whose initial appointments are for recall visits and may not be seeing the purchasing dentist. Having sold two of my own general dental practices and hundreds of practices for my clients over the past 18 years, I am always impressed with how well patients of a general practice transfer to the new buying dentist. This site needs JavaScript to work properly. You quickly find the answers to your questions and keep up to date with all your family and friends. Dental buying groups explained: How strength in numbers helps independent practices, How 3 dentists added revenue despite a turbulent economy, Managerial vs. financial accounting: Why it matters for dental practice owners, Generate recurring revenue to increase your practice’s valuation, Take the plunge into digital transformation and boost your bottom line. – Hugh Dohrty, Busines of Dental Practice LLC . © 2021 Endeavor Business Media, LLC. Moreover, this step is so critical that it should be described in the purchase and sales agreement. 43. For full conference information, registration, and early-bird pricing, visit principlesofpracticemgmt.com today! Over that same 10 year time frame the Dental Schools plan on graduating only 45,871 new dentists, leaving a shortfall of over 3,500 new dentists. NIH J Phila Cty Dent Soc. Are you constantly trying to get away from your dental sales rep? Moreover, the seller should obtain a certified copy of the buyer`s dental license and controlled-substance licenses. When dental history is written, the great debate of the 2010-2020 era will be Corporate Dentistry vs Private Practice. Some intraoral cameras cost $50, and others cost $5,000. Patient Communication and Patient Financing, How to create a revenue machine with a dental membership program. This article will address the legal and practical issues of the billing and collection practices in your dental practice. Those not keeping up run the risk of becoming irrelevant. 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