By Cheryl G. Murphy, OD
Once an OD decides to dive in and own a practice, one of the next decisions they need to make is whether to plunge into the pool of opening a practice cold or to cannonball into buying an existing practice. Each decision comes with its own set of advantages and disadvantages, so how does one decide where to make a splash? I recently spoke with Aleksandra Wianecka, OD, of Vision for Life in Babylon Village, NY, who opened one practice cold, bought another practice, and then merged the two. Here are some of the key points I took away from our conversation:
Dr. Wianecka opened her first office cold in 2004 and cultivated its growth. When it began to thrive and outgrow its original location, she not only moved it, she bought another practice three miles away and merged the two. Her first practice was located inside a medical building shared with a dentist and primary care physician. She says that situation helped her: “I had patients lined up from day one. Being associated with a primary care doctor and sharing his waiting area helped tremendously to bring much of my patient traffic.” She also received referrals of family and friends from patients and through being a participating provider for certain insurances. However, as her patient base grew, she felt constrained by the 800 square feet in which she practiced and started to shop around for another locale–and another practice. She knew that a storefront would bring in more foot traffic and give her practice greater visibility and that buying another’s practice would be a great way to quickly expand her patient base even farther.
Practice–and Building–Owner
Aleksandra Wianecka, OD, owner of Vision for Life in Babylon Village, NY
It took four years of shopping around to find the practice that was the right fit for her and Dr. Wianecka was wise to wait. When she came across a practice in Babylon Village, New York, she knew it was the one for a few reasons. For starters, not only was the practice for sale, so was the building. The building was an independent-standing brick structure with one floor and was on a busy street with a lot of foot traffic in a small, charming village on the south shore of Long Island.
One of the advantages of owning the building is the possibility for expansion. After checking local zoning laws, it may be possible to add a second story to the building and reap the rental income from other medical or business professionals on the second floor. The potential of added income of a rental property is on Dr. Wianecka’s radar and will be something she considers in the future. In a desirable neighborhood with many restaurants, a movie theater and cafes such as the one her new office is in, residential apartments on a newly added second floor could also bring in extra monthly income for years to come.
Merging Old and New Practices
Since the existing practice within its own building was in reasonable proximity to Dr. Wianecka’s prior practice, she felt as if she had found the right place, at the right time and at the right price. But merging the two practices wasn’t easy. Dr. Wianecka soon discovered that she and the previous doctor practiced a bit differently. She had always preferred a more medically centered optometric practice, and that is what she envisioned for this newly acquired practice, so she worked to change things to match her medically-oriented model of optometry. She also added a new lab to cut lenses, changed some of the insurances the office accepted, modified the professional fees and even had to change some of the existing staff.
It took nearly three months and the hiring of a new office manager for Dr. Wianecka to feel like the practice was becoming what she wanted it to be. In regard to taking over existing employees when buying a practice she says, “you need to motivate your staff and be able to let go of staff that is not performing well or if they don’t share the same vision that you do.” Dr. Wianecka is the first to admit, “to own your practice you have to be willing to work very hard. It is not a 9-to-5 job,” but she also says she enjoys being a doctor and a manager. Dr. Wianecka adds that she likes the combination of seeing patients and running the day-to-day operations of the business.
Keys to Purchasing a Practice
and Office Space
Take your time and shop around.
Consult with a financial advisor for tips, resources and advice.
Have a lawyer draw up a contract for purchase.
Set up a business plan for the practice.
Staff changes may be needed to put your vision into action.
Advertise to let everyone know you’re the new doctor in town.
If you want to purchase a building, along with office space:
-Look at comps in the area to get an idea for the appropriate price.
-Get to know the area and neighborhood, track the foot traffic and visibility.
-Use a building inspector to check the condition and needs of the property.
-Look into zoning codes and laws in the area to see if expanding is a possibility.
Market Expanded Practice and New Location to Patients
Dr. Wianecka hopes to see her practice continue to blossom and grow and has taken steps to ensure its smooth transition and continued success. The previous owner stayed with her three months to help her with the technicalities of the practice and building. Dr. Wianecka also sent out mailings to all of her patients at her first practice to inform them she would be seeing them now at the new location. Together with the previous doctor and owner of the new practice, she composed a letter announcing his retirement and providing them with her profile, picture and credentials saying that she would be happy to continue with their care. Dr. Wianecka also advertised in the local newspapers and as well as in a local online paper. Introducing social media into the office is another step she is taking to connect with patients and bring new patients in.
Dr. Wianecka’s advice to others? “You have to trust your instincts,” and she also says to surround yourself with the support and advice of experts such as colleagues, financial advisors, optometric magazines and publications and other professionals, as well as your family. She adds, “Optometry is a great career even in these tough economic times. There are a lot of challenges in being an owner, and there are also a lot of rewards.”
What path did you take to owning a practice? Did you open cold, buy an existing practice, or both, like Dr. Wianecka? Do you own the building in which you practice, and if so, do you rent out space in the building for living quarters or for other medical/business professionals?
Cheryl G. Murphy, OD, practices at an independent optometric practice in Holbrook, NY. You can like her on Facebook or follow her on twitter @murphyod. To contact her: murphyc2020@gmail.com.
