A significant part of my work week is spent assisting and advising dentists who are buying or selling a dental practice. I would like to share my current observations.

• By and large, it remains a seller’s market. There are definitely more dentists looking to purchase a practice than dentists wishing to sell a practice.
• Because of that supply/demand ratio, I see practice valuations continuing to increase.
• Financing for practice transitions has never been easier. 100% financing of documented practice valuation is the norm. Banks have realized that very few dental practices ever fail, and so they are lining up to compete aggressively for your business. And we all know that when banks compete–you win.
• The Federal Reserve has been your friend. Monetary policy that has kept interest rates at historically low levels has stimulated acquisition activity by making borrowing costs so cheap.
• Prior to this low interest rate environment, it was often difficult for a buyer to be able to afford and take on the debt of both the dental practice AND an office condo or stand-alone office building. Sellers would usually be required to offer a lease to the buyer, and become the landlord. Now, it is almost cheaper to buy than to rent, so buyers actually want to own the physical location and build their own equity.
• There is still a premium to a seller if he or she has stayed current with new technology. Upgraded practice management software and advanced computer networking also guarantee a practice valuation at the higher range of the spectrum.
• There are numerous interesting and innovative ways to enable a win/win transition.

My message to buyers is that you should be prepared to pay a little more than you thought in order to buy a quality practice. That increased cost is easily offset by the availability of ten to fifteen year amortization schedules with low fixed rate financing that still allows a great return on your investment. My message to sellers is to get your house in order if you want to receive top dollar for your practice.

As always, I welcome your comments and thoughts.

In a post written on July 8, 2014, I referenced two companies that could assist your dental practice with the daunting and time consuming process of becoming HIPAA compliant. Today, I would like to add another recommendation for your consideration.

MedSafe has been providing compliance solutions for health professionals for over twenty years. What I find attractive about their model is that they offer their services on site. A MedSafe compliance consultant will come to your office and work face to face with your team. That could allow you to have your security risk analysis done with your IT person right there with you. They would also offer on site representation if and when you were ever audited by regulatory agencies or private payers.

As a MedSafe client you have easy on-line access to their website where you can download various essential forms such as business associate agreements, vendor confidentiality agreements, staff confidentiality agreements, and breach notification letters. These documents are automatically updated as regulations and policies change. MedSafe also serves a dual function of providing OSHA training and annual updates and certification. This service, of course, is totally separate from the HIPAA compliance program, but it is nice to have that opportunity for one stop shopping.

To find out more information about MedSafe and their pricing, you can contact Julie Sementa at 781-237-9700  Ext 124.

The overriding message I am trying to convey to all of my readers is to take this mandate to become HIPAA compliant seriously. So please make the calls – get the information – and then make the decision to commit to a program that will keep your practice safe and let you sleep nights!