Basic Business Principles of Analyzing a Private Practice You Are Looking to Join or Purchase

Coming out of residency, oral surgeons are instantly faced with the need to be business savvy as they navigate the professional world, particularly if they’re looking to go private. Unfortunately, most of us lack a background in business. Today, we are joined by Dr. Paul Rollins, one of three partners at Falls Oral Surgery and Dental Implant Center, to investigate how to assess a practice’s operations and evaluate whether they’re a good fit for you. Dr. Rollins breaks down the basic principles of business as they apply to oral surgery, from the difference between production and collections to how to calculate your overhead costs. We discuss the value of time and dependable employees, as well as how to gauge the profitability of a practice for you as an individual. If you’ve decided to pursue a private practice but aren’t sure which steps to take, this episode is for you! Tune in to hear all you need to know about analyzing a private practice you’re looking to join or purchase.

Key Points From This Episode:

• Introducing our guest, Dr. Paul Rollins.
• The challenges of pursuing a private practice with no business background.
• Dr. Rollins’ business background.
• Basic business principles and advice for getting into private practice.
• How to evaluate a practice to ensure it’s a good fit for you.
• What you’re buying into when you buy a practice.
• The difference between production and collections/revenue.
• The biggest expenses OMS practices incur.
• How to calculate your overhead costs.
• How the number of partners impacts the overhead of a practice.
• Salaries versus distributions.
• The difference between operating income and net income.
• How to gauge the profitability of a practice for you as a partner.
• The importance of having a good lawyer and accountant on board.
• Examples of fixed, variable, and mixed costs.
• Dr. Rollins’ current practice setup at Falls Oral Surgery and Dental Implant Center.
• How to calculate return on investment in the oral surgery world.
• The value of having good employees.
• The importance of prioritizing time value for yourself and your employees. 
• The importance of comparing various practices before making a decision.
• Final words of advice for residents looking to join or acquire a private practice.     

Links Mentioned in Today’s Episode:

Dr. Paul Rollins on LinkedIn — https://www.linkedin.com/in/paul-rollins-25248848/

Dr. Paul Rollins Email —

Falls Oral Surgery and Dental Implant Center — https://www.fallsoralsurgery.com/

Dr. Grant Stucki Email — grantstucki@gmail.com

Dr. Grant Stucki Phone — 720-441-6059