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!