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

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