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From: ivdentist@aol.com
Date: 26 Apr 1998
Time: 17:43:09
Remote Name: 152.163.207.136
I went to you open meeting last week on "Consolidation in the Dental Industry", and returned with these basic points very clear.
1) In my opinion, shared with that of your speaker, the big trend to sell to an MSO is a giant pyramid scheme. The MSO does nothing to add value to a practice that couldn't be easily accomplished by an independent practitioner. It will only increase it's stock price by assimilating practices, and the "easy pickins" will be gone before the sellers are legally able to sell their stocks and realize the value of their practices. Yes, some companies will excell and probably lead a new industry, but who is to know right now?
2) The only person who might consider selling out would be a senior dentist who is having trouble selling his or her practice. It's an easy way out, but includes some substantial risk in accepting stock. There is also an emotional risk in that who knows how that practice will be handled- what will become of the patients? Who will be the next dentist? Will the MSO sell out to managed care? Does the seller have recourse if he or she is not happy during the remaining years of practice? Couldn't the whole deal be better resolved with a good associateship agreement with a buyout? Wouldn't that be better for patients, dentists, and dentistry? DO THE RIGHT THING, DOCTORS!
3) Those looking for a creative buffer in the "new environment" should consider a group practice option, a marketing consortium, or other practice modality. You don't have to work for the entrepreneurs, you can be one! Don't limit yourself!