Orthotown September 2019 - 14

embrace progress

profitable orthodontic practice may not
be the same as the location for desirable
commercial real estate. Moving is tough
when you're established, and sometimes
you must relegate to your bad decision-or,
worse yet, open a satellite to capture the new
market or stave off competition.
Many orthodontists I've met over the
years have made good amounts of money
in real estate. Most, however, have had this
real estate outside of their practices. This
way, the real estate and the practice are
more liquid and available to a wider range
of buyers, not to mention easy to dispose
of in the case of life-changing events such
as a divorce, a split of partnership or health
concerns. Generally, it makes life simpler.
I'm sure there are many success stories
out there that do not echo my feelings: Feel
free to leave a comment under this column
online at orthotown.com/magazine.

Associates
Many years before we sold our practice
in Tucson, my business partner and I
would receive dozens of résumés from
prospective associates. We'd marvel at
their accomplishments, education and
qualifications, the hallmarks of doctors
who'd earned top-of-the-class status.
Highlighted were all the impressive badges
of honor and awards earned while they
clawed their way to the top.
After looking at the bios of the individuals looking to work for us, sometimes my
partner and I felt like we were underqualified
for our own practice! Problem was, nowhere
in any of the résumés was a statement: "I
will work to further the practice utilizing
my orthodontic knowledge and licensure
and will make suggestions on how we can
build a business together."
What?!
I've said this to my staff a number of
times, and to this day I believe it is still true,

14

SEPTEMBER 2019 // orthotown.com

but nothing points out the shortcomings of
your practice or business plan like adding
a second location or adding an associate.
I reflect upon Dr. Ron Redmonds' classic
lecture at the AAO annual session in Denver
many years ago where-and I summarize
here-he said that unless you have a clear
path or plan for your associate, an unneeded
associate can cost you and your business in
the area of a quarter-million dollars in profit.
To effectively utilize an associate, one
needs a business plan to incorporate the
associate into the practice. Cost involved
needs to be thoroughly analyzed. Otherwise,
if one only needs some time off, hiring
an additional assistant, hygienist or other
licensed professional may suit the bill.
Training should not be a part of the job
and if it is, a cost to the associate should
be figured into the compensation package.
With debt burdens and higher education
speaking for themselves, the need to explain
orthodontics to a new associate should not
need to be done.
The plan for the business should!
The best decision, in my humble opinion,
is to increase the business through expanded
hours or locations, employing a system
agreed to by the prospective associate so
that continuity, simplicity and uniformity
of the practice message can be maintained.
Unless this rather simple method of adding
another orthodontist to the mix is followed
and adopted, the associateship is probably
doomed to failure. In other words, there is
rarely a time for two highly compensated
individuals to be in the building at the
same time!

Transition
Here's a topic that's pushed to the back
burner for most of a practice's life. If you're
like the vast majority of practitioners, you
work and work and work, waiting for the
light to go on telling you that you're busy
enough, your practice can handle another
provider or you're forced into transition
due to some health or life event. "Plan
early" should be the rule of the day and
without this, transition can be frustrating
and unprofitable.
Once again, this major practice and life
event can reveal weak links in your practice. A
transition or sale should be the culmination of
years of work getting your business or practice
ready for the next person or corporation. A
valuation should be made, buyers should be
entertained, and the closing should occur.
Long, drawn-out transitions have proved to
be costly, frustrating and often just delay
the inevitable, which sometimes is failure.
So plan for the next generation in the
present and make the transition a success,
rather than a necessity. Systems are the key
to not only achieving a good price but also
keeping the patients happy after the sale.
There could be nothing worse than having
a practice sale go sour with dozens of phone
calls, arbitration meetings or legal bills to
smooth things out.

Conclusion
In summary, with the exception of
venturing into the real estate arena, the key
to success in practice is orderly systems and
procedures, with emphasis on building the
business for growth and sale. ■

Is Dr. Grob spot-on, or should he be told off?
To tell Dr. Dan Grob your opinion about his column, visit orthotown.com/magazine
and leave your comment in the section under this column.
http://www.orthotown.com/magazine http://www.orthotown.com/magazine http://www.orthotown.com
Orthotown September 2019

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