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MediEstates - Time is Money
Time is Money


With time a valuable commodity in today’s busy world, how you chose to spend your time is worthy of a moment of indulgent consideration.

Assuming that you are one of the lucky ones who have the work/life balance sussed, let’s focus on the professional you. ‘Time is money’ (Benjamin Franklin) and, regardless of your particular personal stance in relation to ‘money-making’, the mechanics of dental business are relatively straight forward – time spent in surgery delivering treatments earns money; time spent out of surgery on the management of your business effectively looks after those earnings and years of investment.

What is your time worth?

With goodwill values at a record high, maximising your business profits (while maintaining your sanity) is more important than ever, particularly if you are considering your future retirement. So, what is your time worth? To put this in its simplest form, how much do you earn in a day in surgery?

As a rule of thumb, an average surgery in a mixed practice should be generating a minimum of £250- 300k each year at reasonable capacity. Over a 46-week working year and a four and a half day week at the upper level, this equates to approximately £1,450 per day.

Therefore, if you are spending just one day per week on non-clinical/administrative matters (CQC policies, paying bills, marketing, book-keeping, staff payroll, ordering supplies, etc) and your surgery is lying empty for that time, the consequential lost revenue whilst you are carrying out those tasks is therefore £66,700 each year.

And do you enjoy your admin day? If the answer is ‘yes’ and you wish to continue, then do so having made a fully informed decision. If not…

Efficiency

There is an entrepreneurial concept that states ‘don’t pay someone £25 per hour to do £10 per hour work’. Whatever your numbers are above (substitute your own calculations), this is sensible advice for each and every activity carried out within your business. Allocate responsibility to the relevant person to do the job correctly in the most efficient manner (in respect of both time and cost). Is your time most efficiently spent doing this admin work, or could it be put to better use?

Many practice owners appoint a practice manager (PM) at the stage where they feel the administration is getting too much – or too costly – for them to do themselves. But before you commit to ‘promoting from within’ or adding a new cost to your payroll, consider whether you really need a formal PM. Could you delegate some (or all) of those time consuming tasks – maybe to someone in your existing staff team or even a family member?

When analysing the staffing requirements in dental businesses, generally a practice with three or more surgeries will almost certainly require a manager at the helm to swiftly and effectively deal with all situations – large and small – to enable you to focus on valuable surgery time. That said, an ineffective PM can cause you more problems than they solve!

‘He/she’s a great nurse’ is never a good reason for one of your staff to become your PM. The skills required to be a great nurse are very different indeed from those required to effectively manage an often diverse team of personalities, patient welfare, clinical governance and legislation changes (dare I mention CQC?), payroll and national insurance contributions, financial targets of the business, and so forth.

There are many PMs working in practices where either the owner struggles to delegate (and therefore the PM has very little actual responsibility), or in real terms are not capable of delivering the modern requirements of the role.

As well as this being detrimental personally to their individual development, it is also detrimental to the business with the burden of an over-inflated salary affecting profitability and practice value. If you are paying an enhanced PM salary, then make sure that you will get the benefit of a real PM contribution to your business!

Worthy asset

The truth is, that for a practice manager to be a worthy asset, they must be ‘on the same page’ as you and your management objectives, be your ‘eyes and ears’ and running the business as if it was their money they were spending (think ‘stock control’ as a typical area for improvement!).

Targets should be set and regularly reviewed to achieve minimal gaps in the book and fail-to-attends, an increase in new patient conversions, together with incremental revenue and business growth. If you are not monitoring and achieving these key areas, your business will be going backwards in real terms. Modern practice management is very much a skilled ‘business manager’ role – make sure that your business is run for success!
Posted by: Anne Barker on 11 Jan 2016

General Buyer Terms 

This agreement is in relation to MediEstates Limited whose registered office is at 1st Floor, Pacific House, Stanier Way, Wyvern Business Park, Derby, DE21 6BF acting for and on behalf of our clients ("the Vendors"); and yourself (Buyer's Name) in relation for an introduction to a prospective sale of a business as a going concern. By registering through this agreement I agree to all terms set out below:

  1. Definitions
    In this Agreement the following terms and phrases shall have the following meaning unless the context otherwise requires:

    Business
    Dental Practice business providing dental care. This business is under the MediEstates Ltd sale terms.
    Confidential Information
    Means the actual Vendors identity and all confidential information in respect of the Business, including, but not limited to, any ideas, business methods, prices, accounts, finance, marketing, research, development, manpower plans, processes, market opportunities, intentions, design rights, product information, customer lists or details, employees’ details, trade secrets, computer systems and software, and other matters connected with the products or services manufactured, marketed, provided or obtained by the Vendor, and information concerning the Vendor’s relationships with actual or potential clients or customers and the needs and requirements of such clients’ or customers’ operations.
  2. Obligation of Confidentiality
    The Prospective Purchaser agrees to treat as confidential, information supplied by or on behalf of the Vendor in connection with the sale of the Business.
  3. Exclusions
    The obligation of confidentiality set out in clause 2 does not apply to:
    1. any information received from a third party who was legally free at the time of disclosure to disclose it;
    2. any information which was already lawfully in the Prospective Purchaser’s possession prior to receiving it from MediEstates Ltd on behalf of the Vendor; and
    3. any information which is in its entirety already in the public domain.
  4. Duties of Prospective Purchaser
    1. The Prospective Purchaser shall take such a reasonable security measures to protect the Confidential Information and trade secrets.
    2. The Prospective Purchaser shall not, without the prior written consent of the Vendor, permit any of the Confidential Information:
      1. to be disclosed, other than in confidence to its legal or professional advisors;
      2. to be copied or reproduced;
      3. to be commercially exploited in any way;
      4. to be used for any purpose other than in connection with the prospective purchase of the Business;
      5. MediEstates is registered under the Data Protection Act 1998. Upon Signing this agreement you agree to follow the legal obligations of this act to protect the details of the information supplied to you, with it no to be passed outside of the control of you the prospective purchaser.
    3. The Prospective Purchaser agrees to keep a record of Confidential Information received.
    4. The Prospective Purchaser will return to MediEstates or the Vendor all documents containing Confidential Information and all copies of those documents on demand at any time which are in its possession or under its control, and for this purpose the term “documents” includes computer discs and all other materials capable of storing data and information. The Prospective Purchaser agrees that such documents remain the property of the MediEstates on behalf of the Vendor.
    5. The Prospective Purchaser must not jeopardise or re-direct the sale under any circumstances.
    6. The Prospective Purchaser must not contact the Local Area Team or CCG regarding any practice sale, by any means of media unless written permission is granted from the Vendor.
    7. To carry out own due diligence on practice purchases and accepts that any information MediEstates has supplied is information provided by the vendor and is not responsible for its accuracy or completeness.
  5. This Agreement
    The existence of this Agreement and its terms are confidential and neither MediEstates nor the Purchaser may disclose anything about this Agreement or its subject matter or implementation to any person other than in confidence to their legal or professional advisers.
  6. Duties of Prospective Purchaser
    When buying Dental practices, finance is normally needed. Our organisation operated over more than one of the MediHoldings brand, by completing this from you agree that the information can be shared to our other organisations to avoid the need to register independently and provide the best possible service.

    MediEstates will refer you to the specialist dental lending team and MediFinancial who will contact the necessary banks, whom have preferential healthcare lending rates in some cases, to ascertain which funding is available to you.
    By signing this agreement you do not have to use any of the banks MediFinancial contact, it is just another service which we provide.
  7. Deposit for Dental Practice
    If you are interested in putting forward a formal offer in for a practice, once the offer is accepted there will be a deposit required to secure the practice sale which is dependant of the practice size. This deposit is held in a client account and will be returned to the buyer on completion of the practice sale. You the buyer, will be required to sign a deposit schedule which will cover the buyer and the seller in the event that the practice sale does not proceed.
  8. Changes to this Agreement
    Any changes made to this agreement must be authorised and signed by one of MediEstates Ltd Directors.
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