Avoiding the Pitfalls of Dental Practice Transitions – Part Three

After a brief interruption to comment on Google patient reviews, I want to get back to dental practice transitions. My last blog post on this topic discussed a number of pitfalls to avoid when purchasing an existing dental practice from a retiring doctor. Let me share some specific details based on my experience.

The retiring doctor should leave on the day of the closing=when money changes hands. It is a common misconception that there is value to the buyer when the seller stays on for a short period of time to make introductions to patients. Not true! It is OK for the doctor to leave the practice and have the practice continue on successfully. But you may be playing with fire if you don’t retain the existing staff. The “introduction” and endorsement of the new doctor is made by the retiring doctor in a warm and sincere letter to the patient base. This letter must include a number of vital points.

1.The search – “after a long and careful search I have found a wonderful, talented, compassionate doctor who I know will continue to provide the same care and attention you have come to expect”. List the professional accomplishments – education, training, and experience.

2. The communication – “I have spent countless hours discussing the treatment plans for every patient in the practice.”

3. The continuity – “I am pleased that all of the staff that you have come to love and depend on over these years will be staying on.”  All scheduled appointments will be honored.

4. The thank-you and the pass off– “Thank-you so much for your friendship and continued confidence over these many years.  I am leaving you in good hands, and I know that you will be impressed when you meet Dr. ______. I hope that you will give him/her the same level of support that you gave to me.”

The staff then need to be able to reinforce and expand on these sentiments when discussing the new doctor. The endorsement of the staff is incredibly essential., both on the telephone and in the office. “You are going to love her- she is terrific – and everyone has been so impressed.”

Now all the pieces are in place. The letter was mailed, the staff  enthusiastically supports the new doctor, and the patient shows up for the appointment. But now the buyer has to step up to the plate and hit a home run. A similar analogy is getting a job interview. Someone of influence can set the table and make the introduction and get you in the door. But now you are on your own. It is up to you to sell yourself and close the deal. That is why you need to slow down your operative schedule and make adequate time to do a comprehensive hygiene exam. Every patient you see will be a new patient for you. You are being very carefully scrutinized and judged. Be interested and engaging. You want these patients coming back – that is what you paid for. If these rules are followed, retention rates should be in the 90% range.

Next time – how to prepare to sell your practice for maximum value.