In today’s challenging and changing marketplace, traditional “fee-for-service” dentistry can remain competitive when two small solo practices serving the same community merge. This can result from the development of a partnership, or a total buy-out by one of the practitioners. An ideal time for such a transition occurs when at least one of the practice locations is nearing the end of a lease, thus eliminating one facility/location.
Obviously such an opportunity will be most beneficial if the doctors share similar treatment and management philosophies, and like and respect each other. A practice merger of this nature also becomes an excellent opportunity for a more senior doctor to transition his patients of record to a hand-picked successor.
Additional benefits of two practices merging include:
1. Reduced overhead
2. Expanded patient hours and access to care
3. Potential for expanded menu of patient services
4. Team synergy!
5. Opportunity to learn from each other
6. Enhanced opportunity to grow the practice
7. Greater economic viability
8. Bulk purchasing
It is imperative that the doctors provide a shared vision for the future and strong leadership for the combined staff members to ensure a smooth transition and team commitment! Team-building exercises and shared CE opportunities are also helpful. Additionally, clinical protocols and materials used should be identified and written so all clinical personnel know precisely what is expected of them.
Finally, very clear communications with the patients of record for each practice are essential! A well-drafted letter announcing the merger should be sent in advance of the “grand-opening,” and should emphasize the benefits of the transition to the patients, including expanded hours and services, customer service excellence, and the continued commitment to quality care at a fair fee.
If you are looking for a way to grow your practice, but prefer to remain free from third party contracts forcing discounted services, don’t overlook this opportunity. It’s quite probable that you already know someone who would mutually benefit from such a merger. Initiate a conversation, and explore the possibilities together for a brighter, more successful, more fulfilling, and more profitable future!
to request a sample practice transition letter to your patient family.
Building a Booming Business
Dentists are typically well prepared to care for their patients through excellent clinical training, but are grossly underprepared to own or operate a small business in today’s changing and challenging marketplace. Learn valuable real life lessons in this dynamic and fast-paced program which will touch on many of the factors necessary to operate your practice successfully.
“To accomplish great things, we must not only act,
but also dream, not only plan, but also believe!”
Join the discussion No Comments
Great plan and advice Dr. Kerr. First time reading your blog and I thoroughly enjoyed it. I’m excited to meet you next week and this year’s TDA in San Antonio.