April 10, 2019
Why Dental Practice Demographics Matter
Whether looking to buy a new dental practice or sell an existing one, assessing the demographics of the surrounding area will only be advantageous. Once you’ve established the type of practice you want, make sure to consider the competitive analysis and demographics to ensure the location will work for your practice. Here are some factors to consider when looking at the big picture of your dental practice demographics.
Ask the right questions
How is population growth? What is the age distribution? Is your target market based on income and job types in the area? What is the average education level? Do the majority of residents come from an ethnic background? Does the neighborhood lifestyle align with your practice?
Consider the prospectus
When valuating a dental practice, the physical location of the practice and type of building in which it resides will be at the top of the prospectus list of demographics to help determine fair market value.
State the facts
In addition to the obvious percentage breakdown of patient demographics by gender and age brackets, a list of nearby specialists will help determine if your practice will thrive in the current climate. For example, if your practice is geared toward children (i.e., pediatric dentistry or orthodontics), you’ll want to be in a younger community. If you do a lot with implants and prosthodontics, you’ll want to be in an older community. If you are planning on offering Medicaid and lots of insurance options, you can be a low- to middle-income area. Conversely, if you want to be more fee-for-service (FFS) and offer a lot of cosmetic services, being in an affluent area would be advantageous.
Contact the experts at Professional Transition Strategies to analyze the demographics of your dental practice area for you.