Determining a game plan for buying your dental practice is the first step to successfully starting this phase of your career. It may be tempting to locate an office and begin negotiations; however, this approach will likely cause unnecessary stress and unwanted mistakes. The suggestions below can help you make solid business choices and keep you on track for a successful purchase.

1. Find out where you stand financially.

Graduating with significant student loan debt is common among dentists. Statistics show that 83% of dentists used student loans to pay for school and that the average dental graduate owes $293,900 upon graduation (ASDA, 2022). These staggering numbers impact the practitioner’s choice of career path. Before beginning the path to ownership, closely examine your debt package. It may be wise to defer the purchase of a practice until you have a repayment plan that works for your income. If you know and manage your debt early, you will be better positioned to purchase quickly.

2. Locate good advisors early.

Dental graduates often report that they need more business training. Their more experienced colleagues would likely agree. It is a common mistake to presume your dental skills will make you proficient at running a business. Find strong and professional business advisors to help you set up a budget and a business plan. A CPA can help you determine the best type of business entity for your endeavor and help with the budget and business plan. They can also direct you to trusted business professionals to assist with funding and legal issues. Find an advisor who is qualified and willing to help you every step of the way. You want to avoid choosing someone to do your taxes; find a partner to guide you into success.

3. Find a practice broker to help you locate an office.

You may have a setting that you envision for your practice. A practice broker can help you locate sellers in that type of setting. Location is a crucial ingredient to successful operations. Avoid markets that are saturated with dentists already. If you are inexperienced, you will likely have difficulty competing with established practices, assuming they are well-respected. Also, avoid the common problem of eliminating practices for consideration because they only fulfill some items on your wish list. Be willing to look at practices with an open mind and listen to what your broker and financial advisors say about the business.

4. Study the practice financials carefully.

After you locate a practice that suits your requirements, review the last two to three years of the business’s financial statements with your CPA and broker. Evaluating tax returns, patient numbers, production, recall efficacy, and collections over the chosen periods is critical. Your financial advisors can explain how this practice compares to national benchmarks. The seller has an emotional connection with the company that may influence the selling price. Some sellers will negotiate the price, while others may resist changing the asking price. Do not fall in love with the practice until you determine if it is worth purchasing and within your designated budget.

 

5. Make sure you list all items that are part of the purchase price.

Does your purchase price include items other than the equipment, building, or goodwill? Remember that the real estate purchase or lease is separate from the business purchase. You will need an attorney to help protect you in the contracts that are developed.

Some sellers will want to retain the accounts receivable, while others sell them with the practice. Some sellers may have items that need to be excluded, such as supplies or specific equipment or furnishings. Ensure you understand what you own after the sale.

6. Set up a contract that includes not just the particulars of the sale but also discusses how the transition will proceed.

Be sure that your contract with the seller addresses particulars about how long the previous owner will remain after the sale of the practice, who will be responsible for lab bills for finishing work, and hours during which the leaving dentist may access the office to complete remaining cases. If the selling dentist is not going to finish work, such as orthodontic cases, discuss how the case will transfer to you. Be sure to include verbiage outlining restrictive covenants so the owner does not set up a new dental practice within reasonable proximity and make your purchase valueless.

Patients may bond more easily if introduced to the new owner as they come into the office over six months to one year. Finding a seller willing to make the transition successful for you and the patients is prudent. Regardless, be prepared for some patients to leave the practice and for new patients to arrive when they see changes to signage and other indicators of new ownership. Goodwill is impossible to quantitate, although it is part of most dental practice sales.

7. Make sure you have an effective staffing transition plan.

Staff members are heavily involved in what happens at the sale of a practice. Many team members have only worked with the previous owner and may have reservations about a new dentist’s fit for the office. While they cannot thwart the sale, it is essential to help them understand their role in the new owner’s dental practice as soon as appropriate. After the staff is aware of the deal, keep the lines of communication open so they can have their questions about future employment answered and envision how their day-to-day tasks will be affected.

Following these tips will help you make a smooth transition into your new role as a business owner.

 

Laurie A. Morgan M.S., D.D.S., M.Ed

Healthcare and Dental Services Consultant

 

 

As you embark on your professional journey, one important decision awaits you: Should you buy an existing practice or start your own? In this blog, we’ll explore the key factors to consider when making this decision, helping you navigate the path to practice ownership with confidence.

Assessing Your Goals and Vision:

• Define your long-term professional goals and vision for your practice.
• Consider your desired level of autonomy, flexibility, and control over the practice.
• Evaluate your risk tolerance and financial aspirations.

Start-up, if you want to

• Practice in a particular location or serve a targeted market.
• Design the office space and brand.
• Choose your own equipment, systems, and staff.
• Crave the challenge of growing practice in your own style.

Additional considerations before setting up an office:

• Be sure your skill set is sufficient. You will need to be comfortable working solo. Be sure your quality and speed of dental services will be sufficient to be successful.
• Identify your trusted advisors. You must locate a banker, accountant, and attorney prior to beginning the start-up. Business advice early and often can prevent regrets down the road.
• Develop a solid business plan that encompasses all aspects of practice. Banks will require you to have a prospectus that outlines your demographic study of the location and population, your plans for marketing the practice, and your work strategy and abilities.
• Make sure you are ready to spend more time than a normal workday during the early years. It takes a lot of effort to establish policies and procedures, secure compliance in all the different areas of business and practice, train staff, keep up with purchasing, etc. If you have life situations, such as an infirm parent or a new marriage or baby, starting a business can add additional complications to an already full life.
• Evaluate your business every day. Are your plans succeeding? What needs to change? Goals are not enough to ensure a successful venture. Actionable feedback from your advisors will keep you on track to succeed.

Buy, if you want to

• Rely on existing office infrastructure, equipment, and staff.
• Generate revenue more quickly.
• Learn from a seasoned practitioner during the transition.
• Avoid stressors of construction and purchasing.

Additional considerations before purchasing an office:

• Consider the reputation of the office. Is the reputation one that reflects your practice style? If the office has a stellar reputation, it will be easy to build on that foundation. If you purchase a practice with a bad reputation, be sure to let patients know that the office is under new management and market to existing patients and new patients on that basis.
• Make sure you are comfortable with the exit strategy of the current owner. It is important that the current owner commits to transitioning the patients. Owners who linger long at the practice, however, may impede patients from attaching to you.
• Evaluate the financials with trusted advisors. You need to engage an attorney to review contracts, and you need an accountant to help you understand the practice’s financial position. A trusted banker can help you understand your obligations on loans and lines of credit.
• Make a new business plan for goal setting. You cannot rely on how the previous owner conducted business. Plan for marketing, recall, patient communication, and compliance. Making goals and evaluating progress are key ingredients to successful business ownership.
• Be aware that the staff may resist the transition changes. Be prepared for some staff to exit and other staff to stubbornly hold on to the past. Be ready to help navigate the relationship-building process and take the initiative to keep staff members informed about how you plan to assist them during the transition.
• Make sure that the equipment is well maintained and that you have proper evidence of the maintenance schedule. Equipment suppliers and repair services can inspect the equipment before the purchase.

Deciding between buying an existing practice and starting your own is a crucial step in your journey to practice ownership. By carefully considering your goals, evaluating the pros and cons, understanding the financial implications, seeking expert advice, and conducting due diligence, you’ll be well-equipped to make an informed decision that aligns with your aspirations. Remember, each path has its own rewards and challenges, and what matters most is choosing the right path for your unique circumstances.

This blog serves as a starting point for your research, and it’s essential to consult with your Whalen professional, who can provide personalized advice based on your specific circumstances and goals. Best of luck on your journey to practice ownership!

In today’s healthcare landscape, data is king. Data is crucial to keeping track of the business aspects of practice and plays a role in improved patient care. By collecting and analyzing data, healthcare providers can gain valuable insights into their practices, improve patient care, and make better decisions about resource allocation.

Here are three reasons why collecting and analyzing patient data is essential:

1. Improved patient care: By collecting and analyzing patient data, healthcare providers can identify trends and patterns in offering care at their offices. Auditing treatment plans improve patient care plans and ensure patients receive the proper treatment.Audits can assist providers in identifying diagnosis and treatment coding errors. Audits may reveal codes that insurance payers routinely refuse. It is common for providers to diagnose and plan treatments essential to the patient’s well-being; however, patients may inquire about insurance coverage and find they will have to pay for the proposed treatment themselves. This discovery may cause patients to avoid necessary treatment. Data analysis will uncover these discrepancies and help practitioners develop communication skills targeted at counseling patients.
2. Better decision-making: By analyzing data, healthcare providers can make better decisions about resource allocation and identify areas where resources are needed most. It is not uncommon for technology to advance in medicine. Changes in technology can drive changes in personnel and materials. Watching for opportunities to utilize technology to assist in patient care will assist providers in prioritizing cash allocations in the office. In dentistry, for example, scanners have changed how providers take impressions, which changes the need for impression materials, shipping costs, personnel use, and turn-around time for lab work. Many offices realized cost savings when scanners were purchased. Additionally, providers can run audits on specific codes to determine that fees align with service costs and make appropriate changes.
3. Increased efficiency: By collecting and analyzing patient data, healthcare providers can streamline their operations and increase efficiency. This information can identify faulty processes and help eliminate waste. Reduced waste helps improve the entire healthcare system.

The importance of collecting and analyzing patient data is evident. By using data to improve patient care, make better decisions, and reduce costs, healthcare providers can improve the overall health of their patients and introduce oversight in the healthcare system by managing their offices more efficiently.

Collecting and analyzing patient data is a powerful tool that can improve healthcare. By using data wisely, healthcare providers can make a real difference in the lives of their patients.

Patient appointment scheduling is an essential part of any healthcare practice. It can be a daunting task, but it is crucial to get it right.

Here are five best practices for managing patient appointments and scheduling:

1. Use patient scheduling software: Patient scheduling software can help you automate the scheduling process. Software products that let people choose from available time slots can help relieve the stress of finding appointment times. These products give the front staff time to think about appointment requests in terms of the overall schedule and ask providers about the appointment timing if there are scheduling conflicts. Self-serve scheduling helps patients feel like they have some autonomy about the appointment instead of feeling pushed into a time slot that is not best for their schedules.
2. Set clear appointment policies: Ensure your patients know what to expect when they schedule an appointment. Be sure any communication includes the types of appointments you offer, the length, and the cancellation policy. Providers should enforce strict policies that prevent front staff from providing medical advice or quoting fees. Take time to work out wording that redirects the patient to what they can expect, the excellent service they will receive, and the benefits of being a patient at the office.
3. Be flexible: Sometimes, patients need to reschedule their appointments. Be flexible and work with your patients to find a time that works for them. With this in mind, remember that broken appointments are costly, and the front staff should strategically schedule and look for ways to fill gaps created by no-shows. One creative solution for redeeming broken appointments is to offer patients already in for treatment some additional time to finish other treatments without rescheduling. If a patient is already numb in one quadrant, they may appreciate the doctor being willing to restore a tooth next door if extra time is available. Also, keep a list of people who are able and willing to come for treatment on short notice. Many retirees are flexible, and some patients who live close to the office or work from home may be able to fill in gaps quickly.
4. Communicate with patients: Keep your patients informed about their appointments. Send them reminders and confirm their appointments.
5. Track your appointment data: Track your appointment data to see how well your scheduling works. Tracking data will help you to identify areas where you can improve.

Following these best practices can improve your patient appointment scheduling and provide a better patient experience.

 

 

 

The front office team is the first point of contact for your customers. They are responsible for making a good first impression, providing excellent customer service, and resolving issues. A well-trained front office team can make a big difference in the success of your business.

Here are some of the benefits of having a well-trained front-office team:

• Increased customer satisfaction: A well-trained front office team can provide excellent customer service. They can answer questions, resolve issues, and ensure customers are satisfied with their experience. Most importantly, the front office team is a part of the patient triage because they help patients discern the type of appointment they need and what services will likely be part of the treatment. It is essential to set office guidelines regarding the questions to ask patients when they call in so that the clinical team can have the best information available to them to improve treatment.
• Increased case acceptance: A well-trained front office team can help to improve treatment plan acceptance. Team members should be trained to help patients understand the flow of treatment, it’s timing, and costs and should be able to answer questions about expected outcomes. The front office staff is often instrumental in helping patients become more comfortable with their proposed treatment plans by perceiving hesitancies and involving the clinical team to answer lingering doubts.
• Improved efficiency: A well-trained front office team can help to improve efficiency. They will be able to handle customer inquiries and requests quickly and efficiently, freeing up your time to focus on other tasks.
• Reduced costs: A well-trained front office team can help to reduce costs. They can prevent insurance coding mistakes, identify patient data errors,  and address payment issues. These services are critical to the health of any practice.

If you want to improve the success of your business, it is vital to invest in training your front office team. Many resources are available to help you prepare your team, such as online courses, books, and seminars. By investing in training, you can ensure your front office team is ready to provide excellent customer service and help you achieve your business goals.

Here are some tips for training your front office team:

• Start with the basics: Make sure that your team members understand the basics of customer service, such as how to greet customers, how to answer questions, and how to resolve issues. The team leader, often the office manager, should be able to implement the provider’s vision for the practice. These leaders should have some input into decision-making regarding office policy. They should dedicate themselves to overseeing that the team performs collaboratively to meet the stated goals of the office.
• Provide ongoing training: Don’t just train your team once and then neglect further training. Provide ongoing training so your team members can stay up-to-date on the latest customer service techniques. Ensure that the training program extends to all new hires and that the seasoned personnel are up-to-date on all office policies or procedural changes.
• Set clear expectations: Ensure your team members know your expectations. Set clear goals and expectations for customer service, and provide feedback so your team members can improve their performance. Remember, to be unclear is to be unkind. Many people are anxious to perform well in their roles. Stated expectations are the standards by which performance is judged, so clear communication of the expectations can improve employee job satisfaction.
• Reward good performance: When your team members do a good job, reward them. Approval will help to motivate them to continue providing excellent customer service in the future. A reward does not always have to take a monetary form. All people enjoy hearing they are valued team members. Recognizing a job well done will help with employee compliance and satisfaction.

By following these tips, you can train your front office team to be their best. A well-trained front office team can make a big difference in your business’s success and your enjoyment of your practice. Contact Us to get more tips.