Selling or Buying an Existing Practice

By December 24, 2018Administration

Are you selling your practice or buying an existing practice?
We have found that when a practice has been bought or sold, information that may make the transition
go smoothly has either been overlooked or forgotten when it comes to the production and collections
figures of the practice.

The following questions may help you not only be aware of these areas, but may also help you with some
of the decisions you will need to make.

Is the new owner already an associate of your practice or is the new owner new to the practice?
If the new owner was an associate and is now the owner or partner, how will the previous production be
treated? Will he be paid with the same rules in place or will he now be paid on total production or total
collections? Does there need to be a definition of production and collections before and after the sale of
the practice?

Is the new Dr purchasing the A/R or will the current owner get the payments collected?
Will the new owner be taking over the A/R of the previous owner?
Do you want to add duplicate producers so you can keep track of production and payments before and
after the sale?
Would it be easier to pay down the old A/R on a separate database? Start with a new database that just
has patients and their information but no A/R?

What happens with the hygiene treatment?
Was the hygiene production part of the original owner’s A/R? Will it still be that way? Will you need to
create duplicate hygiene producers to separate the before and after sale production and collection?

Will the new Dr be submitting claims electronically?
Has the new Dr been registered with CDANet and been given an electronic billing number? Is CDANet
aware that the office owner has changed? Have you also registered with Itrans and Pacific Blue Cross(if
applicable)?

Will you need new bank codes in Power Practice or will you use the ones already in the system?
Will all payments go to the new owner or will payments from existing production go to the original owner
of the practice?

How will the planned or in process treatment still linked to the original Dr be dealt with? Are there
existing Ortho plans that should be changed to the new Dr?
Will the original Dr finish the treatment started? Will there be any large cases the original Dr will keep?

Has the practice name changed?
Has Power Practice Administration been notified of the sale?
Do the patients Dr and Billing Dr need to be changed or will they stay the same?

Please contact us with any questions you may have on how the sale of the practice may impact your
practice management software needs. Having these questions answered before the first live day of the
new ownership will make your tracking and reporting processes easier.