What To Consider When Buying A Dental Clinic?

There are three basic types of dental practices in the market today. They are insurance-driven, fee or service-based, and blended practices. We will look at each one of these models to help you with what to consider when buying an existing dental business.

An insurance-based dental practice participates in different insurance plans. In fact, insurance-based practices are more straightforward to expand than fee-based practices. Most young dental professionals prefer this business model to start their dental careers. For one, their business becomes listed within the insurance company's directories for their clients to pick a dentist. Secondly, insuance agencies figure out pricing for them, and the government typically is involved when agencies set pricing. It can differ from state to state in the United States of America. In a nutshell, you don't have much control over pricing or the market. You have to walk in your door, but you don't have to spend resources figuring out pricing or much marketing.

What Is A Fee Or Service-Based Practice?

A fee-based dental practice doesn't participate in any insurance plan. The insurance provider doesn't limit the fee charged for the service. The dentist and their patients usually agree on the costs. The dentist spends resources managing and setting pricing and marketing efforts. However, you have the freedom to do what you will with pricing, and you have more choice with the type of clientele that comes through the doors.

What Is A Blended Dental Practice? 

A blended practice is a mix of insurance-based and fee-based dental practices. Insurance patients experience a similar level of care as fee-based patients, even with reduced treatment costs. The office vibe is closer to a fee-based operation.