Nice isn’t it. We’ve had an autoclave…Midmark 11…first model…14 years old that has constantly been down with a service guy here every week. I told my partner six months ago that they do not last much longer than that and he was flushing cash down the drain…nope, we’ll fix it. I had the front pull all the invoices and over the past 8 months with labor and parts he had spent 1264 dollars on repairs to that unit and it went down big time last week. He’s buying a new one. He could have saved a thousand dollars. Our curing lights look like a 5 year old has been gluing them together they have been knocked off the counter so many times and he’s patched them. Not only do they look like crap, they don’t put out proper light in his ops and I told him so.
I go on ebay or some site and buy two 85 dollar lights and when someone knocks it off the counter and breaks it I just toss it. I keep a credit card for that reason. I put a red piece of tape around my handpieces, which are mostly old canister kind so I can change quickly. They are constantly gone. I go through all my handpieces in a day maybe twice but suddenly they are gone. Someone from down the hall has come and gotten them…autoclave is down or all their turbines are burned up. I keep two turbines per handpiece in the drawer with the handpieces and change before they go down.
He is learning but when a ballast on a light goes then I tell the girls to find Dr. Lindsey when they come to me complaining. It is nice to just be working because you love it and want to. There is some conflict like the young lady the partner was going to wait four years to fix and I’m doing it now like she wanted but we get by it.
Guy W. Moorman, Jr., D.D.S.
The Swamp
Douglas, GA 31533
912-384-7400
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I am now practicing two days per week. An xray sensor failed this month, and so did a dr's manifold unit. Also, when a towel dispenser loosened off the wall this week and a staffer asked if i could fix it, i smiled and told her that is no longer my Sunday project, speak to the new owner. My point is that you should be comfortable remaining the practice manager and owner with all it entails, rather than perhaps just being an associate. I am definitely enjoying my new role.
regards, bill g, (the one that plays the sax)
On Sun, Sep 1, 2013 at 8:43 AM, Bill Greenberg <billgreenberg101@gmail.com> wrote:
Hey, Bill G. Nice to hear from you.
With a couple associates, the percent of gross formulas would be crazy high. After overhead and their percent of collections, they contribute a small percent to the "profit". (small percent of a big number, so I'm not complaining)
In my original example I defined "profit" as the money left over after all the bills and associates are paid (including me paid as an associate). If there was $100K profit, then that amount could finance the debt to buy the practice and thereby establish the value.
Alternatively, I could hire another associate (or 2) to do the same amount of dentistry and I could sit back and collect the "profit"and become the office manger. If I did that for 5 years, I'd net the same amount of money and still own the practice. Just thinking out loud, here.
Bill
On Sun, Sep 1, 2013 at 8:16 AM, conchdoc kw <billgoldner@gmail.com> wrote:
Hey bill g,
i was very pleased with Roger Hill's appraisal of my practice. As Guy said, they looked at it about 5 different ways, additionally Roger ran Pro-formas which show a believable forecast of what a buyer can expect in the following ten years. The appraisal was very thorough and explained well in person.
btw, the practice value did indeed equal approximately 60% of gross. go figure...
bill g
(the other)
On Sun, Sep 1, 2013 at 7:37 AM, Guy Moorman <gmoor@windstream.net> wrote:
Peter, McGill and Hill have a formula that takes into account just about everything that could equal worth or liability. They use gross and net, ARs, amount of depreciation left on equipment, number of new patients and potential for new patients and on and on and on. It has come up with a pretty fair number both times for us. The first buy-in valued the practice at about 400k (half) plus the payback for the new equipment and increased supplies. When they came in I was running on an overhead of 25% and Roger said that was ridiculous and they would figure it on 40% going into a new building. He just about nailed it.
The second doc came in with all equipment paid for…no debt and his buy in was about the same at 400k (I actually took 40k off of 440k to make him comfortable and payback is still tough). I financed the first associate because he could not get a loan. The first associate paid about 550k due to the five rooms of brand new Adec equipment. The second was about 100k less due to equipment being depreciated. We are still running on about a 40% overhead.
Guy W. Moorman, Jr., D.D.S.
The Swamp
Douglas, GA 31533
This email message and any attached files are confidential and are intended solely for the use of the addressee(s) named above. This communication may contain material protected by patient rights, work product, or other privileges. If you are not an intended recipient, you have received this communication in error and any review, use, dissemination, forwarding, printing, copying, or other distribution of this email message and any attached files is strictly prohibited. If you have received the confidential message in error, please notify the sender immediately by reply email message and permanently delete the original message.
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