Dr. Old naturally assumed that Dr. Young would eventually buy
his practice. He introduced many of his patients to Dr. Young,
and referred all new and emergency patients to him as well.
Dr. Old was glad to have someone in the office to cover for him
when he was not there. He was also able to extend the office
hours. The practice grew, and most of the new patients were
treated by Dr. Young. Dr. Old eventually began turning some of
his own patients over to Dr. Young and slowed down further.
As with any two dentists working together with no definition,
the relationship had its ups and downs, but Dr. Old felt that the
good outweighed the bad.
Dr. Young, however, had other thoughts. He had decided that
he would rather practice in another area of the country, and
wanted to “sell” his practice and move there. Dr. Young reasoned that Dr. Old would not “buy” his practice since many of
Dr. Young’s patients were former patients, or would have been
patients, of Dr. Old. Dr. Young had five years of working with
those patients and had established a good relationship with
them. He had no restrictive covenant, so he was free to practice
wherever he wished. He was aware that Dr. Old believed that
he owned the practice, but Dr. Young knew that, in reality, the
patients would follow him and the real value of a practice was
not equipment, but the patients and their goodwill.
Dr. Young, therefore, had a practice to sell even if he was only
an Associate! Who the patients “belong to” varies from state to
state. Nonetheless, you may be losing patients and income
every day!
Dr. Old saved a little money in contract costs when he brought
Dr. Young into the practice, and in turn, lost $125,000 (if not
more!) later.
Richard V. Lyschik, DDS, FAGD is one
of AFTCO’s leading innovative Senior
Analysts and has helped more than
2,900 dentists in associating, buying,
expanding, or