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How to Sell Your Medical Practice Without Losing Your Patients

Patient retention is the biggest concern for medical practice buyers. Here is how to structure your transition for maximum retention.

RM

Robert Martinez

Healthcare Practice Advisor

January 2, 20246 min read

The Patient Retention Challenge

When I sold my dental practice group, our biggest negotiation point was not the price—it was the patient retention guarantee. Buyers know that patients often leave when their trusted provider does.

Why Patients Leave After a Sale

Based on my experience with 120+ healthcare transactions, patients leave for three main reasons:

  • **Poor communication:** They feel blindsided by the change
  • **Provider relationships:** Their specific dentist or physician is leaving
  • **Service changes:** New ownership changes hours, insurance acceptance, or service quality
  • The Transition Structure That Works

    **The Gradual Handoff:** I recommend a 6-12 month transition where the selling provider gradually reduces their schedule while introducing the new provider to patients.

    **Communication Strategy:** Personal letters from the selling provider introducing the buyer, followed by a "meet and greet" event, dramatically improve retention.

    **Financial Alignment:** Structure earnouts based on patient retention metrics. This aligns incentives and reassures the buyer.

    What Buyers Will Ask For

  • Patient count trends over 3 years
  • Insurance mix and reimbursement rates
  • Provider productivity metrics
  • Patient acquisition cost and sources
  • Recall and reactivation rates

  • Dr. Robert Martinez has built and sold three medical practices over 20 years, including a multi-location dental group.

    RM

    Written by

    Robert Martinez

    Healthcare Practice Advisor

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