I am sometimes asked by buyers how much patient attrition should be expected when a practice sells.
The question alone assumes an inevitability…that a significant number of patients leaving post sale is a necessary part of practice sales.
Practice Sale Search has overseen thousands of practice sales over the years, and we can say confidently that in a well-handled transition, the patient loss should be near zero.
Here are 7 best practice tips to minimise patient attrition in a practice sale:
1. Keep the vendor on post sale and let them phase out over time.
Having the vendor stay on post sale (even if it is part time, with long holidays each year), will show the patients continuity with the practice that they know and are loyal to, and will keep them in the practice.
Most vendors are concerned about working for someone else after being their own boss for decades. However, if the work environment is made comfortable for them, most would prefer to phase out of practicing over time, rather than jumping from working 4 days per week to nothing.
Make it comfortable for them to stay, give them clinical independence, choice of materials, labs and specialists that they refer to. Give them hours, days and nurses that make it comfortable for them to work and allow them to take long holidays each year and phase out of the practice over time.
Having the vendor there, even in a reduced capacity, will help show the patients that it is still the same practice that they have been loyal to, even if it is harder to get an appointment with their old dentist.
2. Letter of introduction and endorsement from the vendor.
Some patients will refuse to see a new dentist out of a misplaced sense of loyalty to their old dentist.
If the vendor sends a letter to patients, this can help enormously with the transfer of patients.
The letter does not need to mention the change in ownership (in fact, many would say it is far better if you don’t tell the patients). It just needs to say that their dentist (the vendor) will possibly be cutting down their days and/or taking a sabbatical in the near future. Tell them that the vendor wouldn’t feel comfortable reducing their availability if they didn’t have a quality dentist available in the practice to see them, and that if patients ever find that it is difficult to get a convenient appointment, they should give the new dentist a try.
Some suggested text for such a letter can be found here:
https://practicesalesearch.com.au/dental/articles/patient-disclosure-in-practice-sales
3. The new owner should never be critical of the vendor’s clinical decisions.
Not to patients and definitely not to staff. You can read about the impact of this here:
4. Staff should remain where possible.
The loyalty that patients have with a practice is not just because of the principal dentist. They have often developed a familiarity with the team as well. When the team remains, there is a familiarity and comfort for the patients, even if the original dentist is not present. The staff will be asked by patients what they think of “the new dentist” …don’t leave this interaction with patients to chance and the staff member’s memory. Create a cheat sheet of bullet points about you (your clinical experience and special interest, as well as some personal points i.e., if you are married, have kids, have a passion outside of dentistry, etc.).
5. Offer ongoing discounted dentistry for the vendor and their immediate family post sale…even if the vendor isn’t staying on. When a dentist retires, their community often looks to their post-retirement choice of dentist to inform their own decision about whether to stay or find someone else. Make it easy for the dentist and their family to choose your practice on an ongoing basis. Offer them heavily discounted or “rebate only” basic dentistry and treat them like VIPs on an ongoing basis post sale.
6. Changes should be brought about slowly. New owners often have a lot of ideas about how to improve things. Take it slow, if not for the patients’ sake, then for the staff. Those big changes that the young dentist has in mind need timing, finesse and a soft landing. Try to spend a few months getting to know the practice before you put any major changes in place. Show the team that you are taking the trouble to get to know the dynamics of what works and what doesn’t in the practice and area first, before you jump in with changes.
7. Ask for feedback. Set up regular meetings with your staff, share your vision for the practice and ask them for their views. You don’t need to take on all their suggestions, but their history in the area and with the practice may give them insight into issues that you will encounter, and they may have ideas of their own that you haven’t considered. Regardless, if this is done well, they will appreciate the inclusiveness of being asked.
For more Post-Sale articles for a dental practice buyer click here: