Author: omniadmin

Covid-19 Resources for Washington Dentists

Washington Dentists:

For the latest information on COVID-19 from the WSDA, visit https://www.wsda.org/member-center/covid-19

Leadership Through Crisis Webinar Series

We live in extraordinary times with norms changing every day.  Events are unfolding that not many of us thought possible just a few months ago. We at Omni Practice Group care deeply about our dental community around the globe and would like to express our concern to all of you that have been affected by recent events.

Our commitment to the dental community is unwavering, and to make good on that commitment, we will continue to provide you with industry-leading information and speakers to help you make sound, fact-based decisions in this time of uncertainty.

Omni Practice Group is proud to announce our Leadership Through Crisis Webinar Series.  We are hosting industry leaders in the dental field to present their expertise and opinions on how to best help your dental practice navigate these uncharted waters. This webinar series will take place over the coming weeks and include topics that are relevant to dentists across the country.

We encourage all dentists to register and participate. Through education and community, we will get through this together.

To register, visit omni-pg.com/register.

Goodwill in Dental Practice Value – For Buyers

By Megan Urban, OMNI Practice Group

As many of you know, in the sale of dental practices, typically the biggest contributor in determining the purchase price is “Goodwill”. Are you aware of the aspects that make up goodwill?  Of course, it includes your patients and business reputation, but it’s also based on patient retention, which is your hygiene program or Recare.

Savvy buyers understand that the repeat or retained patients are critical to on-going success. It is also important to lenders working with buyers. If you have a bulk of your patients coming in for large cases and your collections are high, that is commendable, however, a new buyer will be concerned that your patients have completed all treatment leaving them nothing to do and eliminates the chance for the buyer to meet and keep your patients.

All dentists focus on getting enough New Patients, as they should, but what happened to all the New Patients you treated over the years? As a buyer, Recare is consistently an area of opportunity. Even if Recare isn’t where you’d like it, consider what can be done. Take a look at this example:

Let’s say you averaged 15 NPs per month for 10 years and you saw each on an average of twice per year in hygiene or Recare, you would need approximately 514 days of hygiene if you see an average of 7 per day. Some of you may see more patients in hygiene, but some may be SRP and perio patients may be coming every 3-4 months. You may work around 180-195 days per year so you would need approximately 2.75 hygienists. So that means if you retain at least 85% of those patients, you will need more and more hygiene days each year. Is this happening in your practice?

I have analyzed hundreds of practices and found that the average potential for increased collections from goodwill or patient retention is $30,000 to $150,000, depending on the size of the practice. I know it’s usually a high priority in any practice but needs a little tweaking that can bring big increases. And this doesn’t include potential increased collections from diagnosed treatment from all those periodic exams!

Every practice has areas of opportunity and here is one for you to capture.

Goodwill in Dental Practice Value – For Sellers

By Megan Urban, OMNI Practice Group

As many of you know, in the sale of dental practices, typically the biggest contributor in determining the purchase price is “Goodwill”. Are you aware of the aspects that make up goodwill?  Of course, it includes your patients and business reputation, but it’s also based on patient retention, which is your hygiene program or Recare.

Savvy buyers understand that the repeat or retained patients are critical to on-going success. It is also important to lenders working with buyers. If you have a bulk of your patients coming in for large cases and your collections are high, that is commendable, however, a new buyer will be concerned that your patients have completed all treatment leaving them nothing to do and eliminates the chance for the buyer to meet and keep your patients.

All dentists focus on getting enough New Patients, as they should, but what happened to all the New Patients you treated over the years? Consider this example:

Let’s say you averaged 15 NPs per month for 10 years and you saw each on an average of twice per year in hygiene or Recare, you would need approximately 514 days of hygiene if you see an average of 7 per day. Some of you may see more patients in hygiene, but some may be SRP and perio patients may be coming every 3-4 months. You may work around 180-195 days per year so you would need approximately 2.75 hygienists. So that means if you retain at least 85% of those patients, you will need more and more hygiene days each year. Is this happening in your practice?

How many years have you been practicing and how many hygienists do you have? You may feel it’s impossible to fill more hygiene schedules. That tells me you may need revised scripting and a strategy for talking with your patients and educating them about their dental maintenance.

I have analyzed hundreds of practices and found that the average potential for increased collections from goodwill or patient retention is $30,000 to $150,000, depending on the size of the practice. I know it’s usually a high priority in any practice but needs a little tweaking that can bring big increases. And this doesn’t include potential increased collections from diagnosed treatment from all those periodic exams!

I encourage you to look at your own practice statistics. How many patients did you see in Recare in 2019? Run a procedure frequency report for codes 1110, 0120 and see if your numbers make sense based on your number of patients.

Do yourself a favor and increase your collections now and increase the value of your practice for the day you sell. This is my area of expertise and something I enjoy helping my clients achieve. Please contact me if you would like to further discuss and make a plan for your practice.

5 Reasons to Purchase a Practice in 2020

Happy New Year!  Is this the year you finally take the plunge and buy your own practice?  Or are you content with being an associate working for someone else?  Here are a few reasons why 2020 should be the year you become a practice owner:

1. Interest rates are starting to move up. The past few years have rewarded buyers with interest rates in the 4% to 5% range and some with as low as 3.75%.  Interest rates moving up means you may have higher payments on your practice loan.
2. Bank financing is readily available.  If you think you cannot get financed because of high student loan debt, personal debt, bad credit, etc., then think again.  Banks view your diploma and the accompanying school debt as a positive thing.  It’s an asset that can be used to generate a good income.  Call us and we can hook you up with a bank to discuss your situation.
3. Jump in, the water is warm.  Studies have shown that those who are successful in both business and in their personal lives take calculated risks.  Owning a practice is a well-calculated risk with the failure rate on practice ownership less than .25%.  Yet, many doctors continue to be an associate as they deem practice ownership to be a risk.
4. Pay off debt and retire sooner.  By purchasing a practice this year versus several years down the road, you can pay off your debt sooner, put more money in your pocket and retire sooner.  I know of several examples of doctors who bought a practice two years out of school and five years later had their practice completely paid off and are putting that money towards retirement.  Plus, practice owners make an average of 25% more per year than typical dentists who are associate employees in someone else’s practice.
5. Become independent.  Owning your own practice allows you to do the procedures you want to do and refer out those you do not want to do.  It also allows you to choose your staff, even choose your patients.  You get to work when you want to work and go on vacation when you want to go on vacation.  It is all up to you as you are the boss!

Whether you decide to purchase a practice in 2020 or continue to work as an associate, Omni Practice Group would like to wish you a Happy and Prosperous New Year!