4 Red Flags To Watch Out For When Purchasing A Dental Practice
Purchasing a dental practice is a huge decision, one that can impact the rest of your life. This is why it’s so important to thoroughly investigate the practice beforehand. You need to make sure you’re paying attention to and understanding the positive things within the practice.
But even more important than the positives, are any negative factors within the practice. These red flags shouldn’t automatically be deal breakers, but you should be able to identify them and investigate them before committing to purchase the practice.
Four important red flags to keep an eye out for include:
- The seller refuses to be open with you — If the seller is hesitant to or refuses to share information with you, this could point to a larger problem. You should never make such a large decision without all the information possible.
- Poor patient retention and/or patient recall — Ask yourself why patients aren’t returning. If they’re looking for a new practice, it’s important to find out why. The staff will oftentimes know the answer to these questions, but it’s also a good idea to check patient records and charts as well.
- Production is in decline — This can sometimes be explained if the seller has been cutting back on days or hours. However, it’s still something that should be investigated.
- High employee turnover rates — If employees at the practice you’re investigating don’t tend to stay employed there for long, find out why. What is their pay rate? Does the seller have a poor management style? Are there disagreements among the staff?
Being aware of these red flags and knowing how to investigate them will you’re your decision much easier. For help in identifying and taking care of any problems in a potential practice purchase, please contact CTC Associates. We can assist you with your dental transition!