Considering the service mix is crucial when purchasing a practice for several reasons:
- Patient Retention: If the selling doctor offers services that you can’t provide, you risk losing patients who specifically seek those services. This can impact the practice’s revenue and the overall value of your purchase.
- Business Reputation: If the selling doctor has different values or standards of care, it may be challenging to maintain the business’s reputation. Consistency in care and values is essential for retaining patients and building trust within the community.
- Transition Smoothness: Aligning the service mix with your skills and expertise ensures a smoother transition. Patients are more likely to continue their care when they perceive little disruption in the services they receive.
- Financial Viability: The services offered can significantly impact the practice’s financial stability. If certain services are more profitable, they may contribute significantly to the practice’s overall revenue.
- Regulatory Compliance: Different services may require compliance with various regulations and licensing requirements. Ensuring that you can meet these obligations is essential to avoid legal issues.
- Competitive Advantage: Tailoring the service mix to meet the needs of the community and stay competitive in the market is essential for long-term success.
- Staff and Training: If the service mix changes significantly, it may require retraining or hiring of staff with the necessary expertise, which can affect operational costs.
In summary, considering the service mix when purchasing a practice is critical to ensure patient retention, maintain a good reputation, achieve a smooth transition, and ensure the practice’s financial viability and compliance with regulations. It’s a key factor in the success of the acquisition.
Schedule your Complimentary Marketing Planning Session to learn the best way to market your new practice, even if the service offerings have changed.