Disadvantages and Responsibilities of Purchasing an Optometry Practice

In a previous post, we emphasized the Advantages and Benefits of Purchasing an Optometry Practice. The most relevant drivers and motives of purchasing an Optometry practice are the financial benefits of a predictable cash flow and the patient base. Having paid money purchasing an existing practice, both drivers or elements become the primary responsibility of the purchaser as he does not want to waste financial rewards and/or lose patients and customers.

It is very important that the purchaser understands the demographics and the population of patients who find their needs at this practice so that he can extrapolate and invest in extending the practice core services rather than changing them. Moreover, if a change is required, understanding the patient’s relation to the practice is very indispensable to initiate change without having to lose them. One important point is related to receivables and collection, where the new Optometrist will have to adapt to the terms that the previous owner offered to existing patients. New terms can be implemented when introducing new procedures and products and new patients start visiting the practice.

The new Optometrist expected to command the staff must be able to understand how they manage the day-to-day operations and how they deal with patients. Every change that needs to be implemented needs to go through a process that ensures that everyone will support and adopt.

Sometimes the new Optometrist specialization differs from the scope of practice of the acquired business. The Optometrist will have either to employ an associate to handle the practice main activities so that he can extend on his specialty practice or he has to handle the matter himself and get involved in the scope of the practice.

Purchasing an existing practice requires a significant amount of money to be initially paid as well as a subsequent monthly payment. The new Optometrist’s responsibilities will be to carefully manage the practice financials in order to make-ends-meet and sustain progress. Old equipment and furniture as well as introducing new technologies to the practice should also be considered in managing the practice finances.