Private dental practice has never been more exciting nor better positioned than it is today.
The number of private dental practices in the marketplace is declining, and many dentists are learning that their practices do not appeal to the next generation of practitioners looking for dental practice listings. Some of the most common reasons why these practices aren’t appealing to new practitioners include:
- Smaller revenue streams
- Dated delivery systems and technology
- Antiquated buildings and office designs
- Older staff members
- Delta issues dictating transitioning from premier fees to PPO fees
- Undesirable locations
Opportunities like these are not that appealing to dentists looking to launch their careers with their own private dental practice. Many of these practices are being acquired by nearby dentists through vertical integrations into the buyers’ practices. But in other instances, the patients are left to scatter and find a new oral health care provider.
Adding more fuel to the fire, Dental Service Organizations have provided employment opportunities which did not exist a generation ago. Hence, dentists no longer need to seek a dental practice acquisition to sustain themselves if they choose to practice in the private sector. Many dentists who choose this path will never own a private dental practice.
As it concerns start-ups as a vehicle for dentists to venture into private practice, this is an extremely risky undertaking. The costs are prohibitive, lenders are hesitant to fund such undertakings, and few dentists have the intestinal fortitude for such a venture. With those few exceptions where such an undertaking is possible due to financial resources unavailable to most, dentists are not entering private practice through this path.
As it concerns consumers, many understand that maintaining ones’ overall health requires good oral health care and prefer dentists at a private practice they can trust. As much as 36% of Americans have dental anxiety, and consumers seek trusting relations and strong customer service with a dental practice where someone stands behind their work rather than going to a corporate setting with a completely different dynamic.
With the number of California private dental practices declining coupled with consumers seeking dentists in private practice settings, the upside for private practice has never been better. Insightful practice owners should take advantage of these market forces by vertically integrating a nearby colleague’s practice into their practice.
It’s recommended that practice owners go out-of-network by booting Delta Dental out the door. They should invest in continual education to improve their skill set, upgrade their technology, and contract with a specialist to perform procedures in their office instead of referring this revenue stream elsewhere.
California private practice owners might seek like-minded colleagues and form solo-groups whereby multiple patients can be assembled under one roof, allowing the collective practice opportunities that a stand-alone private dental practice would find hard to achieve.
The opportunities making themselves available to dentists in private dental practice are phenomenal if one is able to filter out the noise in this confusing landscape and take advantage of the doors that wish to be opened.
Dentists considering a path to pursue shall find a career in private dental practice to be the most rewarding from both a satisfying clinical perspective and from a wealth-building perspective.
If you’re looking to buy or sell a dental practice in California, Professional Practice Sales of The Great West has you covered. We’re the professional dental brokers practitioners can count on. Contact us today for more information about our dental practice listings.