Practice Transitions

Seller’s Name On The Practice

If the contract for the sale of a doctor’s practice permits the buyer to use the seller’s name for a period of time, the contract should state that the buyer indemnifies the seller for any liabilities or expenses incurred by the seller arising from the use of the name.

Young Doctors – Own Your Own Practice!

Advice to Younger Doctors – One of the Best Financial Decisions You Can Make Is Owning Your Own Practice As Soon As You Are Able:  The ADA’s Health Policy Institute reports that the percentage of dentists under age 35 who own their own practice fell from 44% in 2005 to just 28% in 2017.  This […]

The Importance of Shorter Practice Broker Agreements

Broker agreements are negotiable.  The standard language will state that the agreement runs for 12 months.  If the broker (or you) finds a buyer during that time, then the broker is eligible for a commission.  In addition, if the sale actually closes during the 12 month period following the end of the agreement, the broker […]

Written Employment Contracts

If You Are Hiring (Or Are Becoming) an Associate, a Written Employment Agreement is a Must: We have seen several examples lately of practice owners hiring doctors coming out of their training without having a written employment contract in place. This is a mistake for several reasons, the most important of which is that Dr. […]

Financing a Practice Sale or Group Practice Buy-In

Financing a Practice Purchase – Outside Financing is Available for Many (If Not Most) Full Practice Sales: This and the next three items deal with financing the purchase of a practice or the buy-in by a new partner in a group practice.  The availability of outside financing is a dramatic recent change.  Historically, most practice purchases […]

Lease Protections You’ll Want as a Tenant

If You are Leasing Your Office From an Unrelated Third Party Landlord, Have Your Lease Provide For an Easy Transition in the Event of Your Death, Disability or Practice Sale:  A doctor’s lease should provide that upon death or disability, the doctor or the estate has the option of terminating the lease on reasonable (say […]

The Normal Two-Year Statute of Limitations for Malpractice Claims is Suspended Where the Doctor Fraudulently Withholds Relevant Information From the Patient

In a recent Georgia case, the patient’s case against her former prosthodontist was allowed to proceed even though the case was brought more than two years following the negligent treatment.  The patient required full mouth reconstruction with fixed implant prostheses.  The prosthodontist recommended that an oral surgeon extract certain teeth and replace them with implants, […]

What Do You Do if You Have a Partner Who Does Not Want to Buy You Out When You Get Ready to Retire?

Ideally, this should not be a problem as it should be covered in a buy-sell agreement.  But sometimes that doesn’t exist.  It’s possible this problem can arise because the junior partner is a bad person who calculates he can get the senior partner’s practice by default so why should he pay much for it.  But […]

Practice Transitions – When the Status Quo is Working Well, Why Mess With Success?

Let’s say you’re a busy orthodontist in your mid-40s in a single doctor practice.  Your annual collections are $1,800,000, and new patient exams are booked six weeks out.  Yours is the only practice in town.  A young orthodontist about to graduate from his residency program contacts you about joining your practice as an associate with […]

Motivating an Under-Producing Associate Who Wants to be Your Partner

Let’s say you have an associate who wants to be your partner. He is a terrific clinician and a wonderful person, but he does not produce at an acceptable level. If that is the only thing holding him back, we would set a reasonable standard he needs to meet. For example, it might be that […]

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