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What is the best location to buy a dental practice? (The data may surprise you)
Description
📋 Free Download: Practice Evaluation Checklist https://practiceown.com/pdf
What is the best location to buy a dental practice? I compare dentist competition, dental visits, and hygienist pay across the country, then look inside two practices in the same city with very different ownership outcomes. I explain why a seller's financial statements can miss the most important part of an acquisition. If you're deciding where to buy, this episode will help you understand what to evaluate before you commit.
What we cover:
- Alabama has about 2,424 residents per dentist, compared with 1,236 in Massachusetts.
- Only about 58% of Alabama adults reported a dental visit in the past year.
- Hygienist pay averages roughly $63 an hour in Washington versus $29 in Alabama.
- Higher payroll can coexist with higher fees and insurance reimbursement.
- State averages hide substantial differences between cities in the same state.
- Median annual collections per patient in my practice evaluation data are $894.
- In the 800-patient practice, collections per patient fell from $1,700 to $950 after the sale.
- Collections fell from $1.36 million to $760,000, while many operating costs stayed fixed.
- Practice loan repayment left that buyer with about $51,000 in first-year income.
- The 3,300-patient practice supported nearly $800,000 in first-year buyer income after practice loan repayment.
- Clinical due diligence helps determine whether you can sustain the seller's collections.
💼 Work with me: I help dentists evaluate dental practices before they buy. Every practice I evaluate gets compared against my database of 500+ evaluations.
📬 Questions? Reach out directly: chris@practiceown.com
0:00 Where Should You Buy A Dental Practice?
1:02 Dentist Competition And Dental Visits
3:46 Hygienist Pay And Local Expenses
6:15 City, Suburb, Or Rural?
8:15 Patients And Treatment Planning
10:44 Collections Per Patient
14:35 Cash Flow And Practice Loans
18:28 A Different Practice In The Same City