It’s been my experience that most practice owners wait too long to plan for the sale of their practice. The consequences are disappointing offers to purchase, little control over the sale of their practice, and more.
Do you have a plan?
- What is your practice worth? A baseline Valuation is important.
- How many Active Patients are in your practice?
- Do you have an emergency Exit Plan and Directive?
- Is the procedure fee schedule up to date (meaning updated in the past year)?
Are you familiar with the key Practice Management Numbers?
For the previous calendar year, and the current year to date:
- What were the total production and the total collections?
- What was the dollar amount of the total adjustments?
- How much were the adjustments for insurance, family members, team members, and professional courtesies?
- Do you know the dollar amount of your accounts receivable?
- How many new patients do you see in a month?
Regarding the Health of the Practice:
- Is the Practice Overhead normal for the type of practice you own?
- Do you know the dollar amount of your Accounts Receivable? Is it healthy?
- Regarding turnover; do you have systems in place for continuity of practice policies, procedures, and standard of care?
- Are you a participating provider for PPOs? If so, are you familiar with the percentage of adjustments per PPO?
- Have you updated your practice décor within the last 10 years?
- How old is your equipment? Does it all run well? Are replacement parts available?
- Do you have the necessary technology for a young buyer to purchase your practice?
- Is the Inside and the Outside of your Practice neat and clean?
More of what matters:
- Do you have management systems in place?
- Have you recently reduced or increased your practice hours?
- Do you believe your team will stay on post-transition?
Whether you’re ready to retire or just ready to work fewer hours, it’s important that you don’t take your foot off of the gas without a ready-to-execute plan in place. There are great resources available to help you control the way you exit your practice, and protect your Legacy. Please let me know if you have questions. I can point you in the right direction. Mary