Dental Practice Purchase Scenario

The practice that I want to buy is in a metropolitan area in Northern Virginia (roughly about 400K) with a 3 chair ops. The gross production is around 450K for 2 days – fee for service. Patient pool is about 600 active patients (fee for service).

I know the area & the area has grown tremendously over the past 10-20 years & continues to grow, maybe not at the same pace, it’s still growing though. Also, having a ffs practice in that general area is an achievement in itself as the demogrpahics of the area trend towards insurance participation by many residents.

The gross prod & patient count seem about right for a 2-2.5 per week practice.

This practice is one of two locations that I am associating right now since 06.

Let’s dive into a little more about who the patients WANT to see. You’ve been there since 2006, it’s now 2008 so you’ve been there 2+ years. Were you doing the 2 days per week in this location or was the owner sharing the time with you? If you were there by yourself then the concern about who the patients will want might be moot. If you split the days, it would be interesting to know how the prod broke down for 2007 & year-to-date 2008.

It is owned by the senior doctor. It is 5 miles from the other practice.

My concern is about the 5 miles IF you were splitting the 2 days with the owner, if not, these patients clearly have chosen this office & you & the 5 miles would be less of a concern with me and you can work the agreements in such a way that the owner can’t soloict those patients and if any do move to the other lcoation they could compensate you for them.

Originally we were going to do a 50/50 partnership but after going through some negotiations we decide that I better off buy one location straight out.

Let me know your thoughts.

Thanks in advance.

This post first appeared on NewDocs.

Send your questions to Tim Lott, CPA, CVA at

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