Whether you're adding a new dentist to your staff or planning to retire, having a smooth dental practice transition is essential for everyone involved. Even when you plan everything ahead of time, it can still be challenging to navigate the transition in a way that protects the existing practice. From evaluating buyers to hiring consultants, it's important to protect yourself.
Continue reading to learn all about transitioning a dental practice.
A dental practice transition takes place when an existing practice hires a new dentist who will bring existing patients with them or when a practice owner decides to sell their practice. People who sell dental practices often do so as a precursor to retirement.
Dental practice changes can be quite complex and require extensive planning. A transition differs from a straight sale in that, typically, a new provider will be brought on either as a growth strategy or as an eventual exit strategy. Both instances may be true; for example, an established dentist might bring on a younger partner with the intention of eventually retiring, so that the other dentist can take over.
Another way of looking at it is that ADA practice transitions are driven by relationships. For a transition to be successful, existing practice patients and new practice patients must be made comfortable. Those relationships must be maintained or built, as should relationships between the new provider and existing practice staff members.
Dental practice sales and transitions can fall into a variety of categories, depending on how they are carried out and what the long-term goals are. Here are some transition types to consider.
Dental practice transitions can take only a few months or they may take place over multiple years depending on the transition process that best suits the long-term goals of the practice.
In any dental practice transition, the stakes are high. Not only are the buyer and seller exchanging money, but patient care must remain consistent if the transition is to be successful. Here are some common mistakes when transitioning a dental practice.
The transition process is likely to take some time. Experts agree that during an ADA practice transition, creating a sense of continuity and reliability is essential.
Whether you are buying an associateship or flat-out buying a practice from another dentist, you will likely be eager to take advantage of practice opportunities as they arise. However, you can't afford to skip any of the essential steps on our dental practice transition checklist.
We suggest making patient communication a priority during the transition. Sharing information with patients will make it easy for them to cope with changes as they come and will minimize the chances that you will lose them.
The most important aspect of ADA practice transitions is the process of transitioning patients to a new dentist. While consultants can get you through everything from reviewing practice listings to identifying practice opportunities, the buyers and the sellers must work together to ensure a smooth transition for the practice's patients.
There are several ways to approach patient notification and you will likely need to implement more than one to get your new career off to a good start and make the transition a smooth one.
The first option is to tell patients in person about the changes that will be happening. Timing can play a big role in whether you can notify patients in person. Any patient who comes into your office for an appointment in the window between 4-6 weeks before the sale is finalized should be told in person.
You may also want to make arrangements for long-time patients or patients who have anxiety about dental care to be told in person, if possible.
If the practice has an active email list and patients are accustomed to receiving regular email updates, then you should send an email to every patient on your list about six weeks before the transition. The email should notify them of the date of the transition and who will be taking over the dental practice. You may also want to include some details about what the buyer will be doing. Mailing out postcards to every patient in your database with the same information is another great strategy to consider.
While you could certainly stop with the notification methods we have already discussed, we think it's a good idea to go the extra mile. Dentists can't survive without patients and the existing patients are going to want to meet the dentists who will be caring for their teeth going forward.
Hosting a casual hello/goodbye event can give the practice's patients a chance to ease into the changes at hand. They can come into your practice, say goodbye to the dentist who is leaving, and meet the dentists who will make up the new team. An event like this is particularly important for patients who may have anxiety around dentists or who have been patients for a long time.
Let's close with some dental practice transition tips from the experts and successful dentists. Brian Halbert of Halbert Capital Strategies offers this piece of advice to sellers:
Define how you will help transition patients, how you will make sure your staff merges well with the other, and clearly understand how you can help grow revenue (and make sure you get a % of that growth).
Another key piece of advice that's useful to both buyers and sellers comes from Michael Roub, the managing partner at Inflection 360. He says:
“One of the biggest considerations and challenges is to present financial and practice information in a manner that will give the buyer the utmost confidence in the quality and performance of the practice.”
We would add that buyers should request and review full financials and KPIs before agreeing to terms. That way, there will be no surprises.
Dr. Robert Warren of Brooklawn Dental Associates believes transitions should focus on patients.
“The most successful transitions allow sufficient time for the retiring doctor to introduce his or her patients to the new doctor, [and] retention of staff members will also make patients feel at home with the new doctor.”
Warren also pointed out that maintaining a treatment philosophy that's consistent with the departing doctor can put patients at ease that they'll receive the same quality of care they have been receiving. Changes to treatments and technologies should be gradual to give patients time to adjust.
Dental practice transitions can be complex, but if you follow the steps and suggestions discussed here, you will have a smooth transition and set yourself up for success.
Titan Web Agency can help with many aspects of your dental practice transition!
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