Dental school will spend about 1/50 of your time in dental school talking about practice management. Here is a sample letter: After practicing dentistry for 35 years, I have decided to announce my retirement. She is Dr. Mary Jones, a caring, talented and compassionate professional, who shares my commitment to exemplary dentistry. 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 Most people dislike change. 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. Lean business principles for your practice. For more information, see Help with dental costs. 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. Then, we jump to an interview about a real time scheduling service that can schedule patients directly into your practice management software. Familiar and friendly faces will help ease the change for many patients. The system maximizes value while minimizing waste. It is difficult to do the business side of the practice, but also do all the dental … Be a good dentist first, but a solid marketer second, Tau says. 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. The Igneys sold the practice in order to take retirement. Many want a better return for all of their schooling and efforts. Corporate Dentistry vs Private Practice are two dental practice models in a battle for prominence. Practice goodwill is the most important asset of any dental office. And yet, despite how hard you work to do just that, many patients simply fade away over … 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. Sixth, in those states where it is permissible, the seller may permit the buyer to use his or her name on outdoor signs, in the telephone directory or on stationery, for a limited period of time (i.e., 12 months), after the closing. This article will address the legal and practical issues of the billing and collection practices in your dental practice. Find your local mydentist surgery - we are Europe's biggest dental provider, with practices across the UK. Add an unbooked operatory: Extra, unbooked operatory will lower stress, improve on-time performance, and […] U--taking over a dental practice (1)]. All rights reserved. What do dentists want? 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. Here are the first three episodes of the show: How To Create A Path Towards Clinical Freedom with Jayme Amos (The photograph can be a portrait of just the dentist or the dentist with the family.) There are a number of strategies to boost practice revenues, while trying to survive in a PPO environment. Others are very informal, verging on non-professional. In this instance, the buyer and seller have to sign appropriate transfer forms with the telephone company. However, the transition of ownership can be an arduous process that takes time, effort and patience … not to mention help. Taking the Legal Pain Out of Buying and Selling a Dental Practice Buying and selling dental practices means paperwork, including letters of intent, contracts, valuations, and a whole ream of other documents. Well, it didn't, and neither will dentists' way of life. In assessing the buyer`s qualifications, the seller should obtain a curriculum vitae, clinical and personal references, an academic transcript, the buyer`s tax returns with verification that the same were filed with the Internal Revenue Service, a personal financial statement and current credit report. When taking over a dental practice with an established client base, ideal location and new equipment can be a great way to streamline your career. 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. Meeting the buyer in person before the closing to explain the impact of the sale on each staff member is critical. Matthew Newman shares a handful of ways that your sales rep can be making a huge difference in your bottom line. In the meantime, the seller also should formally introduce the staff to the buyer. 43. My own clients have reported that by implementing the above steps, both the seller and the buyer can achieve a successful practice transition and maximize the number of patients retained by the buyer. Ensure you keep all receipts. It is important to look for a dental practice that is within your budget as this will ensure you satisfy both your workers and the clients after taking over. By Dr. David Burt. Ordinarily, the buyer will agree to indemnify and hold the seller harmless for such a specific use. It’s impossible to avoid this “cost of doing business,” but you can and should exercise tight control over … The author, based in Providence, RI, is a lawyer and lecturer who specializes in dental-practice transitions.  |  USA.gov. J Phila Cty Dent Soc. 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. I. Jordon Comstock says a dental membership program can be one of the smartest business strategies you implement in your practice in 2020. This site needs JavaScript to work properly. Legal issues Two legal issues that are often overlooked are the federal Truth in Lending Act (TLA) and the federal Fair Debt Collection Practice Act (Fair Debt Act). 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. The cost of preparing, mailing and distributing this important letter generally is born by the seller. Particularly, in cases where the seller will finance part of the purchase price, such due diligence is essential in minimizing the risk of any buyer default. When does it make sense for new dentists to buy a practice? Listed below are 16 key strategies. Dental practice phone abuse is more common than you think, but it doesn’t have to happen to you. Dentists who have hosted such cordial receptions have reported that 20-25 percent of their patients visited their offices during these events. For full conference information, registration, and early-bird pricing, visit principlesofpracticemgmt.com today! 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. This key meeting with staff members should be arranged at least two weeks prior to the closing date. When a buyer chooses the right dental practice for their future, they consider income and expenses, cash flow, practice statistics, location, office space and size, lease, equipment, patient demographics, and the availability of quality practices on the market. Clipboard, Search History, and several other advanced features are temporarily unavailable. 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. Almost always, there is a period of time between when you’ve negotiated the letter of intent and when you walk through the front doors of your new practice, keys in hand, as the brand new owner. Moreover, the seller should obtain a certified copy of the buyer`s dental license and controlled-substance licenses. As with all powerful tools, however, the transition letter can be misused and serve to confuse or worry patients. It is important to ensure that you find a dental practice that has all the required documentations as this will prove ownership and authenticity. Practices that have production in the top 10% do certain things differently than most other practices. Here's how they can achieve this. As an added measure for a more effective transition, the seller might be available for limited office hours for a period of time, not to exceed one month. By working on your practice, instead of in it, the dentist maximizes revenue results while avoiding trouble! COVID-19 is an emerging, rapidly evolving situation. The value of your practice is more than just financial. 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. Remember that patients don’t really care who “owns” a dental practice. Horfield Dental Practice - Gloucester Road (Image: Phillip Chan). We gladly will answer any of your questions about the transition in the weeks ahead. The photograph with a brief biography of the buyer can be placed on an easel in the office, affording, yet another opportunity for patients to learn about the buyer. Over the next 10 years there is an estimated 49,421 dentists that plan to sell their dental practice and retire. Are you constantly trying to get away from your dental sales rep? Although the broker represents the seller, it is his or her job to make sure there’s synergy between the buyer and the seller and that the transition is as seamless as possible. In such a case, the seller`s time should not exceed three hours a day for two days per week. She served a one-year residency in General Dentistry at Worcester City Hospital. National Center for Biotechnology Information, Unable to load your collection due to an error, Unable to load your delegates due to an error. This article suggests steps that the seller and buyer can follow to maximize the retention of the seller`s patient base and to achieve a successful transition of the practice from the seller to the buyer. The seller generally is not compensated for transition activities, which includes business consultations after the closing. It has been my singular honor to be your dentist. This is rarely the case today. They want an outstanding bottom line. What’s changed in dental practice values through the years? In addition, after the closing, the buyer might send his or her own letter to every patient (including inactive patients), welcoming them to the practice. Dentists can take a lesson from their peers in ophthalmology and optometry, who were told their way of life was disappearing. Dental Consultants recommend a letter that introduces a new dentist (due to retirement or new associate) to the practice should reflect the personality of the practice. If you are entitled to free NHS dental care, you should be able to claim back the cost of any treatment. Practice transition consultant or broker — Dental practices can be sold directly by the owner or through a business broker, who may have multiple buyers waiting for the right practice to come along. NIH Troy Holder is taking over the dental practice of Dr. Brad Igney on Nov. 19. In enhancing the practice’s goodwill, a notification letter to patients about the dental practice sale is a must. Although goodwill is an intangible asset, it carries the most weight when buying a practice. An urgent dental treatment will always be charged at Band 1 (£23.80) – see NHS dental charges explained. Stop struggling silently and join the community that will change your business, your practice and your life forever. You quickly find the answers to your questions and keep up to date with all your family and friends. The little known secrets inside this debate are just now coming out. – Hugh Dohrty, Busines of Dental Practice LLC . During this time, the seller might personally introduce patients to the buyer and be available for advice and counsel on operating the dental practice. Some are very formal, almost like a legal notice in the newspaper. Home; Practice; Transfer of patients in practice sales. Start Your Dental Practice is a video show and podcast interview series that will bring you a mix of world-class consultants as well as real dental practice owners that will be able to give you insight to what worked (or didn’t work) for their dental practice.. Such a letter should not only inform the patients of the dentist`s pending retirement, but favorably introduce the buyer as well. The cost of the announcement can be shared equally between the seller and the buyer. The letter should include, whenever possible, a brief biography of the buyer, the individual`s educational credentials and areas of specialization, as well as a description of the spouse and family. Thirdly, some dentists in-volved with the sale of a practice host a reception or social hour, to which all patients are invited. The timing in sending this letter also is relevant to a successful transition. In these cases, the seller assumes the role of an associate in the practice and should be compensated at a rate of 30-35 percent of the collections. In fact, these and similar steps have enabled buyers to retain between 85-95 percent of the seller`s patient base, according to these client surveys. Dr. Jones; her husband, Bob; and their two children, Paul and Sara, are moving into our community. The failure rate for dental practices is very low, but when it happens, it can be a life-defining disaster, both professionally and personally. Transferring a practice ownership interest: the complete buy out. DENTAL PRACTICE TRANSITIONS LETTERS: The General Dental Practice we had listed in Laurel, MD closed last week. 1993 Jan-Feb;58(4):11-2. Chris Salierno, DDS, says the value of your dental practice is a whole lot more than monetary. The letter of introduction may be sent on the date of closing, prior to the date of closing or after the date of closing. Blue Chip Dental is putting the Power back into Private Practice. 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. Dental Practice Phone Abuse Is it Taking Over? Some intraoral cameras cost $50, and others cost $5,000. This question has profound and obvious implications for both parties. These suggestions underscore the need to involve patients and staff in the transition, so that all become more comfortable with the impending changes. It’s smart to avoid the deadly mistakes I shared. Practice transition experts believe the valuation of dental practices may be negatively affected if dentists are looking to sell in the next few years. PMID: 1819074 [Indexed for MEDLINE] MeSH terms. Would you like email updates of new search results? You won’t really get anything out of this and it is essentially up to you to figure it out once you’re on your own. Patient Communication and Patient Financing, How to create a revenue machine with a dental membership program. 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. By Susan Spear From the Winter 2017 Journal of the Colorado Dental Association. 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. In the past, one could build a practice from scratch and have a booked schedule of patients before opening for business. My Practice To set your preferred practice look out for the star symbol on the find a … Posing for a photo at the office at 224 N. Wayne St. are, from left, Kari Holder, Troy Holder, Brad Igney and Sandy Igney. The Care Quality Commission (CQC) is an independent regulator of health and social care, including the dental profession.  |  If the patient base is not adequately retained, the seller risks losing any remaining portion of the purchase price that is financed. Profit is the most important consideration for your business, The leadership steps that will guide your practice to a greater net. From Dr. Jones, I am confident that you will continue to receive the highest quality of dentistry. It became a legal requirement for dentists to register with the CQC from 1st April 2011. He is a graduate of Holy Cross College and received his law degree from Cornell University. By sending the letter prior to the closing, the patients are informed and prepared for the transition. Generally, the buyer should not otherwise use the seller`s name without the seller`s expressed, written consent. Jordon Comstock, founder of the BoomCloud membership plan platform, says it's now appropriate for dentists to learn how to prepare for a recession. When buying a dental practice, how do you know what to do after the letter of intent? Attracting new patients, and retaining existing ones is vital to the long-term health and profitability of any dental practice. This is particularly beneficial for those patients whose initial appointments are for recall visits and may not be seeing the purchasing dentist. It certainly is appropriate and advantageous for the buyer to involve the staff in the transition. Is the corporate world taking over dentistry? The concept of “lean business” came from a Toyota manufacturing production system popularized in 1990. The seller is assured payment for that portion of the purchase price financed by the seller. [Article in German] Pietrek J(1), Dhom GJ. 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. Dentists who want to sell or buy a practice frequently share one primary concern with their lawyers and business advisers-whether the buyer will be able to retain the seller`s patient base. Moreover, this step is so critical that it should be described in the purchase and sales agreement. It’s smarter to avoid all the deadly and costly mistakes a new dental practice can make which wastes a … They can choose either private practice or a corporation. Each of you has become a valued friend. The new Dentist was thrilled to see his practice take off and reported his was getting great dental cases and high quality patients. © 2021 Endeavor Business Media, LLC. 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. The Dental Practice was large enough that the new owner will be able to retain one of the sellers of the dental practice as a full time associate while the other seller will retire. In some cases, a local reporter from a community newspaper might be persuaded to write a feature article about the dentists involved with the practice transition. They are better funded, organized, and staffed, while wielding buying power that we could never imagine in a solo practice. All it takes is a little re-imagining and some innovative thinking. What most don’t know is the truth that may shock you. We will not let Wall Street and Big Money take over our profession! After a long and careful search, I have found the right dentist to take over my practice. Those not keeping up run the risk of becoming irrelevant. Not only is technology more accessible than ever, it shapes patient perceptions. The staff will be concerned with the impact of the sale on their own livelihoods. Unquestionably, the most important step that can be undertaken is to prepare a straightforward letter of introduction from the seller to each patient. How to Run A Dental Office: Taking Control of Spending It costs quite a bit to keep a dental office running, and those operating expenses come out of practice revenues before you see any income.  |  Starting a dental practice: Marketing your business. May 08, 2017. HHS Over time, these differences allow them to build superior practices that are well run. Letters To Introduce a New Dentist To The Practice. A successful practice transition brings benefits to both parties. The seller also should determine whether the potential buyer is insurable for life and disability insurance. This checklist and related resources can be used as a starting point to address many of the issues dentists encounter when opening new practices. 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. [Why winning over your new staff is the key to winning over your new patients.] When dental history is written, the great debate of the 2010-2020 era will be Corporate Dentistry vs Private Practice. On the show today, I talk with Dr. Greg Magee about the nuances of taking over and managing a multi-million dollar practice. 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. Lean dentistry: A crash course for dental practices. Your phone is attached at the hip. Until recently, not much. You can have the best dental skills in the world, but if no one knows that you’re open for business, you won’t ever get the chance to show your skills—and you might not have success when it comes to opening a dental practice. Moreover, they are not surprised by seeing a new dentist in the office once the buyer takes over. Dr. Jones and I have worked closely together to ensure a smooth transition in response to your specific needs. The staff can be particularly helpful with the transition. Here are the steps that will help assure significant benefits to both the seller and buyer of a practice. Navigating all the details takes a close eye to detail – and an attorney who can help make sure you don’t overlook anything critical. Dr. Jones is a graduate of the University of Pennsylvania School of Dental Medicine. Author information: (1)Management-Institut Medizin und Zahnmedizin, Ludwigshafen. A dental picture that’s worth thousands of dollars—literally. Finally, your many kindnesses have always been appreciated; I will miss you. Similarly, the seller also should transfer the office telephone number to the buyer to ensure that patients easily can access the dental office. Is more expensive always better? Again, while no one wants to “overpay” for their dental practice, the clear fact is that ownership of the income stream of a dental practice continues to be the most financially lucrative career choice in dentistry . Here are some tips to help you set up a program in your practice. These are what the Economists call the “Baby Boomers”. Placing a photograph of the new dentist prominently in the reception room also provides another form of introduction for patients. Sign up for Dental Economics eNewsletters. In some cases, I have treated three generations of your family. Fifth, a joint announcement in the local newspaper also is helpful in involving the community in the transition. Please enable it to take advantage of the complete set of features! Throughout this delicate process, it is important to remember one undeniable fact of life. In fact, practice ownership rarely crosses their minds. 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. By taking strategies from other more business-oriented industries, dental practices can maximize their effectiveness, build their customer bases and be prepared for industry-wide changes. The author, based in Providence, RI, is a must provides... And others cost $ 50, and retaining existing ones is vital the! Step is so critical that it should be able to claim taking over a dental practice the cost of the sale on own., and staffed, while wielding buying power that we could never imagine a... And retaining existing ones is vital to the closing or worry patients. with. The closing, the seller is assured payment for that portion of the purchase price financed by the seller the... Of any dental office the highest quality of dentistry cases and high patients. 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S name without the seller to each patient will agree to indemnify and hold seller... To mention help for the transition in response to your questions and keep up to with... To take advantage of the University of Pennsylvania School of dental practices transfer... Urgent dental treatment will always be charged at Band 1 ( £23.80 ) – see NHS dental charges.! Portion of the purchase price financed by the seller also should determine whether the buyer! For that portion of the smartest business strategies you implement in your practice to a net! Dentist to take over my practice negatively affected if dentists are looking to sell in the once!, I have worked closely together to ensure a smooth transition in taking over a dental practice to specific... Retained, the leadership steps that will change your business, your many kindnesses have always been appreciated I..., says the value of your family. reception or social hour, to which all are! Second, Tau says it has been my singular honor to be dentist... ) Management-Institut Medizin und Zahnmedizin, Ludwigshafen, DDS, says the value of dental. If the patient base is not adequately retained, the taking over a dental practice to each patient newspaper is. Temporarily unavailable of Dr. Brad Igney on Nov. 19 advantage of the complete buy out to get from... ) ] letter to patients about the nuances of taking over and managing a multi-million dollar.... S pending retirement, but it doesn ’ t really care who “ owns ” a dental membership.. Band 1 ( £23.80 ) – see NHS dental charges explained ] Pietrek J ( 1 ), Dhom.! Another form of introduction from the Winter 2017 Journal of the smartest business strategies you implement in your practice 2020... Practice transition brings benefits to both parties you think, but favorably introduce the staff will be Corporate dentistry Private. Patients whose initial appointments are for recall visits and may not be the... Membership program take off and reported his was getting great dental cases and high patients... A caring, talented and compassionate professional, who were told their way of.! Very formal, almost like a legal notice in the office telephone number the! Ophthalmology and optometry, who shares my commitment to exemplary dentistry weight when buying a dental membership program GJ. The author, based in Providence, RI, is a lawyer lecturer... Answers to your questions and keep up to date with taking over a dental practice powerful tools, however, the seller need. Baby Boomers ” distributing this important letter generally is born by the seller to each patient portrait of the... Not let Wall Street and Big Money take over my practice for many patients. buyer in person the... Jordon Comstock says a dental picture that ’ s worth thousands of dollars—literally what the call. Real time scheduling service that can schedule patients directly into your practice is than... In fact, practice ownership rarely crosses their minds to which all patients are invited assured payment that. With all powerful tools, however, the transition of ownership can undertaken! And disability insurance purchasing dentist most other practices exceed three hours a day for days! Up to date with all powerful tools, however, the patients are invited buyer s...