This is probably the least stressful way of becoming the owner of a chiropractic or medical practice.
The established practice will likely come with some baggage you don’t want, but it will also come with an accounts recievable. That means you get a paycheck from day one!
Retiring Practice – Probably a Great Practice to Buy
Often you can get a deal by finding a retiring doctor that wants to sell his or her practice. This is great news for you if you can find a doctor like this.
There are several ways the retiring doctor could transfer ownership to you. He will probably want a set amount for the practice based on previous years collections(a rough estimate of practice value based on earning potential).
He may just be done with chiropractic and want someone to pay him the money up front so he can retire. If that is the case you will need some pocket money or atleast a loan from the bank. Good news again, getting a loan for a well established business is easier than a startup business.
The best situation would be that the doctor will stay on as a partner for a small number of years and slowly reduce the number of hours he works.
Why is that so great? Well, because he may be willing to accept payment by taking part of your paycheck over the years and most importantly, you will lose fewer patients.
Advantages of Buying a Chiropractic or Medical Practice
One of the greatest advantages to buying out a practice is that it already has the patients. If you flat out buy the practice and the doctor retires or was injured, be prepared to lose up to 50% of your patients.
As noted above you can dampen this loss by working with the doctor for a period of time and aligning your adjusting philosophies.
Other advantages are obvious . . . No need to negotiate a lease, the equipment is already there, the staff is already in place, protocols for the office are already in place, you may be able to transfer the leaving doctors in network status to you, etc.
Best of all, you will leave with a paycheck within the first month!
There is much more involved in buying a practice than finding a classified ad and closing the deal.
You should always look at the health and future of the practice. For example, was this practice all personal injury patients? That is a lot of eggs in one basket, is the doctor trying to sell the practice before a new law takes effect.
Always beware of changes to laws and above all, diversify your patient base.
Do your research and you might get a great deal you could live with your whole life!
Did you buy your practice?