May 8, 2019
How to Valuate Dental Practice Patient Demographics
In addition to office equipment, furnishings, instruments and supplies, the going concern value of a dental practice that is presented during the prospectus process includes the demographics of its patients. Here’s a breakdown of the aspects of patient demographics that are taken into consideration when valuating a dental practice.
Patient records are taken into account during the prospectus process. This includes the number of active versus inactive patients, average number of new patients per month and number of new patients during the most recent 12-month period.
The role of staff during the transition process can’t be understated. Staff who knows all the patients and their needs is an essential part of the practice. Additionally, letters of introductions to all active patients and/or referring sources provided by staff all add to the value of the dental practice.
How and where patient records are kept is an important part of the valuation process. Questions to ask include: Are patient files organized in the office by the individual? Are patient records stored in practice management software? When was the last complete chart audit?
Insurance details don’t just matter to the patients but are also taken into consideration during the valuation process. In addition to which insurance plans are accepted, it’s important to know what percentage of patients pay with insurance versus cash.
Contact the experts at Professional Transition Strategies to learn more about how the current state of your patient demographics affects the prospectus process.