Get More Value From Your Dental Practice
With dental marketing
By Joanne Bishop | October 20, 2018
If you are thinking that you’ll sell your dental practice one day, there are things that can be done to maximize sale value and minimize risk. In the same way kitchens and bathrooms sell homes, a thriving practice has many benefits to you and your potential buyers.
Ready to surf?! First of all, get a handle on your numbers. These are the leading indicators that demonstrate whether your practice is set for success or if there is work to be done.
Things you should analyze are:
- How many active patients do you have (that had any treatment in the last two years)
- How many new patients did your practice generate in the last year
- What is your average patient value and your average new-patient value
- How many patients are currently connected to your practice, i.e. scheduled for another appointment
- How many families are available per dentist in your area.
Patients that haven’t seen you for 22+ months are teetering on the brink, and if it’s been close to 36 months, those patients no longer are part of your practice and are beyond lapsed and into the inactive stage.
Create a strategy to reach those patients who may not have moved on to another practice or who may have dabbled but are ready to come back.
If new patients represent less than 30% of your patient base, its likely your active patients are dwindling. If not yet, you’ll soon be experiencing a downward slope. To be on a growth trajectory, your practice should have generated more than 600 new patients in the last 12 months. Get proactive with your acquisition marketing plan on and offline.
The average value of your patients and new patients is an indicator of how well your team is doing – and how much business is available to you. On average, your patient value should be $1,000 while new-patient values generally double that (reminding us of another reason more new patients are a good thing for the bottom line). Prep for each patient visit by knowing what treatment has been presented in the past and have hygiene remind patients before you step into the room.
Showing prospective buyers that your patients are connected to your practice is a good thing. The risk of losing patients during transition is a real threat, so the more you can strengthen those connections the better. It’s likely that you have a full list of patients not receiving your automated reminders. Pull your unscheduled list and get your team on an incentivized call blitz to reschedule patients.
Competition also plays a big role in buyer decision-making. Just because you have very few or very many patients per dentist, doesn’t mean you can sit back and relax. You must always be thinking of ways to own your backyard. Are you hitting all your targeted homes with monthly direct mail? Are you participating in community events, sponsoring local sport teams, and keeping your practice visible?
Regardless of whether you plan to continue working for 10-20 more years or have a 2-year exit strategy, creating a growth plan now to ramp up both patient and new-patient activity through 2019 should be your goal.
Take a look at 2018 year-to-date results. Are you where you wanted to be heading into 2019? Are you averaging 50 new patients each month per practitioner? Is your area getting a bit more competitive? There are many leading indicators that can help you set your practice up for maximum success.
Call your Account Manager to schedule a 2019 marketing strategy session today. We’ll go through your live metrics on our Marketing Performance Dashboard PRO version and give you a bonus unscheduled patient report – free!
Call now! We’ll help you catch a wave!