FINANCIAL RECORDS: FIRST AND FOREMOST
Done
I received all the financial documents applicable to the practice I am considering buying
  
I received an explanation as to any item I do not understand on the financial documents
  
INSURANCE COMPOSITION OF THE DENTAL PRACTICE
Done
I received a complete list of all insurance plans the practice accepts
  
I received a fee schedule for all the insurance plans the practice accepts
  
I inquired about the transferability of the insurance plans the selling doctor accepts
  
I received an exact breakdown of the insurance composition of the dental practice, based on collections
  
I received an exact breakdown of the insurance composition of the dental practice, based on collections
  
I know that I cannot legally use any other doctor’s Denti-Cal provider number and that it generally takes
about 8 weeks after the sale close to obtain my own number
  
ADVERTISING
Done
I received a copy of all the advertising the selling office utilizes
  
I received a copy of any on-going advertising contracts that I would have to assume
  
I know the exact cost of all advertising and have a copy of those bills
  
NEW PATIENTS
Done
I received a new patient list, breaking down the number of new patients/month and year
  
I know exactly where the new patients are coming from
  
I examined a demographic zip code list of patients
  
PATIENT RECORDS
Done
I examined a representative number of patient charts, and I chose those charts myself
  
I examined the x-rays, compared those with the treatment plan and the progress notes
  
I compared the progress notes with treatment actually billed to the insurance company
  
I examined the treatment plans to be certain I could provide that type of dentistry
  
I examined the financial arrangements on the patients whose charts I selected
  
I read the progress notes to determine their accuracy and completeness
  
I looked at cities/areas the patients were coming from, to determine whether the patients would likely return
  
PATIENT SCHEDULE
Done
I have carefully examined the patient schedule, both for past and future appointments
  
I noticed whether a scheduling system is used, or names are just “thrown” on the page
  
I noticed how long hygiene is booked in advance
  
I noticed how long hygiene appointments are, and whether I agree with that philosophy
  
PATIENTS AND PATIENT COMMUNICATION
Done
I observed the doctor work for at least a few hours (not always possible, but ask!)
  
I looked at the practice’s website, if any
  
I examined any patient newsletters, or other forms of communication sent to patients
  
FEES/FINANCIAL ARRANGEMENTS
Done
I have received a copy of all the dental practice’s fee schedules
  
I know when the selling dentist last increased his/her fees
  
I have examined the financial arrangement documents and procedures
  
I know what financing options the practice provides
  
EQUIPMENT
Done
I have an inventory of what exactly is being sold, and what is excluded
  
I thoroughly examined all the dental and office equipment
  
I know the age of all the dental and office equipment
  
I know what the dental computer software is, its age and whether it has been updated
  
STAFF
Done
I have received information regarding each staff member’s pay, benefits, hours, licenses, length of time with
the practice, probability of staying with the practice.
  
I have received the DE-6 for the last completed calendar year
  
I have received a copy of the W-2 forms for each employee for the last calendar year
  
I have received a copy of the quarterly payroll reports, for the last completed quarter
  
I have examined the practice’s personnel manual
  
I have met the staff (may not be feasible until the contracts are signed
  
ACCOUNTS RECEIVABLE
Done
I received a comprehensive accounts receivable report, showing aged money owed
  
I noted carefully the amounts owed by individual patients
  
I asked whether co-pays and deductibles are routinely collected
  
SELLER ISSUES
Done
I asked whether the seller is a member of any particular group, religion, organization or other entity that
accounts for 10% or more of his/her patients
  
I asked the seller whether 10% of his patients or more are of any particular group, religion, organization or
entity
  
I asked the selling dentists what his/her future plans are and asked whether he/she was willing to warrant
and guarantee all the information he has provided me in the final sales contract, knowing that information is
forming the basis of my decision to buy the practice
  
I asked the seller whether a management consultant has been utilized and, if yes, I contacted that person
and discussed the practice with him/her.  I asked the fee for that person.
  
I asked the seller whether any particular management style or program is utilized, and, if yes, I thought about
whether I agree with that style and would want to continue it.
  
endodontic system, perio program, etc.)endodontic system, perio program, etc.)
  
BUYER ISSUES
Done
I understand that I must hire appropriate professionals to advise me, but that I cannot rely solely on my
attorneys, accountants and consultants, who rarely actually visit the selling practice.
  
I understand that I cannot rely completely on what the selling doctor and/or broker is telling me: I must
independently verify all information and I must insist that the selling doctor warrant and guarantee in the final
sales contract any information that is not verifiable (such as a seller’s future plans).
  
I must be certain that anything the selling doctor or the broker told me that I relied on to make my decision to
purchase the practice is included in the final sales contract.
  
I understand that I must use my own common sense and good judgment!
  
I must pay attention to any ‘red flags’ or bad feelings in the pit of my stomach, all the way up to the close
date!  See list of RED FLAGS!
  
I must thoroughly read, understand and agree to everything before I sign it!
  
I understand that the law will not generally help me very much if I make a bad decision: the time to make a
good decision is before the close date!
  
I understand that I should buy a practice that is very close to what I ideally want: I understand that practices
are very hard to change!
  
DUE DILIGENCE CHECKLIST
Bette Robin                                                                                    1-877-DrRobin
Dentist, Attorney, Real Estate Broker                                                                                                                        1-877-377-6246
DrRobin@BetteRobin.com
17482 Irvine Blvd., Ste. E
Tustin, CA  92780
Call:

Fax:
877 DrRobin
714-421-4407
714-398-8808
Select Practice Services, Inc.