The ProMed Monthly Newsletter Helping You Reinforce Your Practice Investment Issue #1
Created by Steven Cornejo (Marke ng Director, ProMed Financial, Inc.)
WriƩen By Vicki McFarland (CEO/President, ProMed Financial, Inc.)
ProMed Financial, as a nationwide company, can offer expertise and an extensive database of qualified buyers ready, willing and able to purchase a viable practice just like yours. If you have a serious interest in selling take the first step, and we’ll take care of the rest.
Preparing To Sell Your Practice And Obtaining Maximum Value
With a new year comes new decisions. Life changing decisions like the sale of your practice can be one of the most rewarding experiences in your professional life. When you are ready to sell your practice, there are ten important steps that all doctors should follow:
Continuing Marketing and Promoting: A steady flow of new patients indicates an active practice usually derived from a combination of patient referrals and continued marketing. This demostrates stability and good cash flow to a prospective buyer. Consider offering health screenings, free exams, etc.
Offer Convenient Hours: Early morning and/or late evening appointments and even some Saturday morning appointments have been a very successful way to increase patients statistics. Patients often appreciate the convenience of your availability.
Expand Patient Base: Consider participation in more third-party health insurance programs as well as managed care plans.
Increase Referral Base: Patients are usually the best source of referrals but don’t overlook existing businesses and medical doctors in the same location or within a reasonable distance.
Analyze Your Staff: Consider giving your key person a raise while reducing extra employees. The willingness of the key person to stay on with the new buyer is paramount to a successful transition.
Improve Billing/Collecting: Investigate the overall collection ratio. Determine any particular reasons why it would be lower than usual or if it can be improved. If the problem exists, immediately take action to correct the situation even if it means employing an outside service or a management firm. Consider offering prepaid programs for initial cash flow and future commitment.
Review Existing Lease: Consider negotiating the lease at a lower rate or reducing office size.
Review Associate Contracts: Buyers are often concerned about an associate developing the goodwill of the practice. Be sure associate employment contracts are in place and the covenant not to compete can be enforced.
Improve Patient Relations: Acknowledge birthdays with cards. Utilize a patient recall system. Post photos on bulliten boards. Provide a gift for patient referrals. Consider offering free exams once a year.
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Contact ProMed ProMed Corporate Office 14742 Newport Ave. Ste 209 Tustin, CA 92780 Phone: 888-277-6633 Fax: 888-577-6633 firstname.lastname@example.org www.promed-financial.com
10. Consult With Your Accountant: Discuss terms of sale. There could be advantages of an installment sale or receiving payment as a consultant. Discuss how the potential allocations of purchase price may impact your tax liability.