Having This Healthcare Bottleneck Is More Valuable than New Patients and Money

TL;DR

The success of investing in dental and medical practices lies in understanding the mindset of doctors and having a structured approach to deal-making.

Transcript

yeah so we I think we have a super diverse panel here you know nl's got eight locations around 10 million in revenue and Hubert runs a platform looking at multiple Investments Eric's connected hundreds Physicians and you know uh Shane's grown to 40 locations in two and a half years that's super rare uh you know um Henry and I have like 100 plus fri... Read More

Key Insights

• 😷 Having a diverse panel with successful scaling experiences in the dental and medical fields provides valuable insights into the industry.
• 🦾 Understanding the mechanical mindset of doctors and dentists is crucial for approaching them as investors.
• 🖐️ Deal structure plays a vital role in building trust and providing attractive options for physicians looking for exits.
• 📈 Physicians should be educated on macroeconomic trends and their potential impact on their practices.
• 🤩 A key selling point for investors is assuring doctors that investing in their practices won't compromise patient care.
• 🤘 Continuous involvement and buy-in from physicians are essential even after the deal is signed.
• 👨‍⚕️ Real estate ownership under practice premises can provide retirement income for doctors after selling their practices.

Questions & Answers

Q: What is the main hurdle faced in scaling dental and medical practices?

The availability of excellent doctors is the primary challenge in driving the growth of practices. The panel members agree that having skilled doctors is more important than acquiring new patients or financial resources.

Q: How can investors approach doctors in the dental and medical industry?

Investors need to understand the mechanical mindset of doctors and dentists who operate as engineers. They should initiate conversations about exit strategies early on, helping doctors realize the need to plan for their future in private practice.

Q: Are there specific characteristics and objectives that investors should consider when approaching different medical specialties?

Different specialties within the medical field have varying characteristics and risk-taking propensities. Dentists, ER physicians, anesthesiologists, radiologists, and surgeons are more likely to be innovative risk-takers, which should be taken into account when structuring deals with them.

Q: How can deal structure be optimized to benefit physicians in the long run?

By creating structures that allow physicians to hold onto bits and pieces of their practices while selling portions of it, they can achieve mini-exits and have more control over their future. Physicians can set up separate entities for specific devices or income streams, allowing for flexibility in deciding when to sell or keep their assets.

Summary & Key Takeaways

• Having diverse panel members who have achieved success in scaling their practices is invaluable for gaining insights into the dental and medical industry.

• The number one bottleneck in growing practices is not new patients or money, but rather the availability of excellent doctors.

• Investors need to understand the mindset of doctors and help them realize the need for an exit strategy, whether it is selling to a DSO or growing their practice for eventual sale.