transition
TRANSITIONING TRUST
Deciding whether to transition your practice or sell out to a commercial buyer
by Richard V . Lyschik , DDS , FAGD , CFE
Goodwill is the relationship between a doctor and his / her patients . It is a relationship that is built over many years , and is based primarily on trust . Patients are not clinically qualified to determine whether the services they get are good or bad , so the reason they keep coming back to the same dentist is because they trust that the patients ’ interest is always being considered first and foremost by their doctor .
When a dentist visits with me to sell the practice , the most frequent concern expressed by the doctor is the desire for a successor who is ethical and clinically qualified to take over the practice . These doctors feel that they owe it to their patients to choose a successor who will continue to put the needs of their patients first and will deliver good clinical services . They know their patients will trust their judgment as to who will take over their treatment once the current owner retires . As a result , we are not only transitioning the physical assets of a practice , we are transitioning that trust-based doctor / patient relationship . Therefore , to a selling dentist , a practice transition is quite personal , and can be both emotionally satisfying and , most often , financially gainful when handled properly .
The alternative to a traditional practice transition is a practice sale made to a commercial company . The patients will no longer experience that personal , long-term trusting doctor / patient relationship , it is more like – well , commercial dentistry . Once retired , the seller does not know who will be treating their patients , and there are possibly doctors with uncertain or unknown clinical qualifications treating those patients . When you combine that with frequent doctor and staff turnover once the seller is gone , patients are not likely to have the same trusting dental experience that they became accustomed to . There always is a price to pay by someone for selling out rather than transitioning a private practice . Patient care delivery is depersonalized , resulting in your loyal patients becoming disappointed in the healthcare choice you have made for them .
Commercial practices are investor-owned , and as a result , they must put a focus on efficiency and economy rather than per-
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