Buyer beware: What ‘active patient count’ really means in a practice sale
Originally at news.google.com
Summary & scoring by The Bell Brief (Dr. Jennifer Bell) using the Drill-Down Protocol (Drill-Down Score) — not the original publisher.
Why it matters for dental
Practice owners and DSOs negotiating a purchase or sale need to understand how sellers define 'active patient count,' because that single metric can shift valuation, post-sale cash flow, and legal exposure.
Key points
- Article identifies the risk that an inflated active-patient number can misrepresent true recurring revenue.
- Article warns buyers that differing definitions of 'active'—for example, last visit within 12 versus 24 months—can alter the purchase price.
- Article notes that post-close patient attrition tied to unclear definitions can reduce expected collections.
- Article advises buyers to verify patient definitions in the purchase agreement rather than rely on the seller's reported count.
Who should care
Read the original on DrBicuspid
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