Checklist for practice takeover: From costs to personnel - this is what matters

In the course of their careers, many physicians are faced with the question: Start a practice or take it over? Licensing restrictions in metropolitan areas, which are intended to prevent physician overuse, make it more difficult to start a new practice. In 2019, for example, 67% of all dental startups involved taking over an existing practice. This is because those who want to run their own practice and treat panel patients despite the legal restrictions usually decide to take over a practice.

Why should you take over a practice?

But the opportunity to treat patients with statutory health insurance is not the only advantage of taking over a practice. After all, you don't just get the "cash seat", but also technically equipped premises and a fixed patient base. So you skip the phase in which you first have to establish yourself and your practice, and you can make reliable sales forecasts from day one. Last but not least, the existing practice staff also contributes to this.

Practice staff: your benefits and obligations

If you take over a practice, you benefit from an existing team that already knows the processes and the patients inside out. In addition, the legislator stipulates in Section 613a (1) of the German Civil Code (BGB) that all staff must be taken over "1:1" - and on the same terms. A practice takeover is not grounds for termination!

In addition, practice managers are required to notify staff in writing of the change in ownership. Specifically, this letter must include the following aspects:

• Time of the practice takeover
• Reasons for the change of ownership
• Legal, economic and social consequences
• Planned measures affecting personnel

Note: The staff has the option to appeal. In this case, however, the previous owner may issue a termination for operational reasons (for example, due to the transition to retirement).

Due to the shortage of specialists and the layoffs caused by the pandemic, there is a great demand for qualified practice personnel on the labor market: MFAs and ZFAs are desperately sought after. So your future employees are virtually included in the purchase price. But how much does a practice takeover actually cost?

Average cost of a practice takeover

Of course, owning your own practice is always a financial issue. The cost of taking over a practice depends on various factors, such as your specialty, the location, the equipment and the size of the practice. Family doctors pay an average of about 169,300 euros. This already includes the cost of modernizing the practice, equipment and remodeling.

This is what specialists pay

The investment sum for specialists is significantly higher. Gynecological practices, for example, have to pay the highest amounts for a practice takeover at 300,000 euros, dental practices at around 376,000 euros and orthopedic practices at 400,000 euros. The takeover of a physiotherapy practice, on the other hand, is much more favorable: here, financing requirements of around 35,000 to 65,000 euros are to be expected. These differences can be explained by the technical equipment required.

Checklist: This is what you should pay attention to when taking over a practice!

You have decided to take over a medical practice and would like to take the next steps? In this checklist you will find an overview of the most important steps of your takeover project.

• Valuation: Have the value of your desired practice professionally determined by an independent appraiser. This should be the basis for the purchase price.
• Advice: Seek advice from a specialized lawyer and/or tax advisor regarding your takeover project.
• Business Plan: The basis for a loan or government funding is usually a business plan in which you outline the development of the practice for the coming years.
• Financial planning: For physicians as well as female physicians with the desire to take over the practice, there are special forms of credit, institutions and state support programs (start-up subsidy) to enable the financing of the practice.
• Practice takeover contract: Notarization is usually not necessary unless you also acquire the premises. Sample letters for practice takeover agreements can be found at the Lower Saxony Dental Association and the Westphalia-Lippe Medical Association. Note: It may be worthwhile for you to have this contract drawn up or at least checked by a lawyer in order to protect yourself legally.
• Medical Board: you are required to submit the practice transfer agreement to your medical board.
• Insurances: Check which insurances you need for yourself and your practice. Professional liability insurance, for example, is necessary.
• Practice Contracts: There is no right to assume the existing lease. This must be negotiated separately with the landlord. The same applies to the telephone and Internet connection. In most cases, continuation is possible. However, this requires the consent of the contractual partners. Note: Make sure to keep the existing telephone and fax number in order to continue to be reachable for the patient base!
• Handover plan: In order to proceed in a structured manner during the handover and not to forget anything, you should draw up a detailed plan with the former practice owner as to when which steps will take place until the practice is completely taken over.
• Patient file: Data protection and confidentiality require sensitive handling of the patient file. A two-closet system has proven effective in practice. In case of doubt, consult medical lawyers.
• Informing the staff: It is absolutely necessary to inform the existing staff in writing about your takeover of the practice.
• Information for patients: Patients should also be informed about the change of ownership in good time. Keep everyone up to date with notices, newsletters or information on the website and personal discussions at the practice.

But there is not only a lot to consider for the time before and during the practice takeover. You can also set the course for efficient practice management processes in advance.

And after taking over the practice?

Even before taking over a medical practice, it is advisable to think about some basic aspects of the practice's operation and make decisions. This includes the extent to which you want to digitize your practice. Modern digital practice management systems, as well as signature and billing tools like Nelly, allow you to easily manage important accounting processes. What's more, digital solutions save you and your team a lot of time every day - Nelly even 90 minutes a day!

Simple and modern billing with Nelly

With Nelly, you can easily bill private and self-pay services with one click. This immediately relieves the burden on you and your staff, allowing you to focus instead on treating and caring for your patients. We will advise you on your individual case without obligation and free of charge!

Contact Nelly now!

The personal designations used in this article always refer equally to all persons. For the sake of better readability, we do not use the same name twice or in the opposite gender.