Starting a Dermatology Practice - Buying as an Alternative

Buying a dermatology practice versus starting from the ground up depends on numerous factors including the specific market, patient demographic, and number of practices currently available for sale. With the difficulty in starting a medical practice from scratch, purchasing a practice outright is sometimes a better alternative. Earning income from day one and acquiring an established patient base are some of the primary benefits cited. I've previously discussed some of these topics in other articles, including a discussion about the items which should be included in a medical practice business plan. We currently have an opportunity available in Alabama which is an excellent example of a viable alternative to a startup. This is a solid practice focused on medical dermatology and surgical dermatology. The seller currently collects $700,000 annually and maintains a very efficient cost overhead of 32%. Discretionary earnings in the practice are quite robust. The office is situated in a great location within an expanding metro area of Alabama. A mature practice such as this has much potential to continue growing as the patient draw area develops greater needs for dermatologic care. One way in which an incoming buyer could grow and expand the practice is by offering Mohs micrographic surgery, which is currently referred out by the seller. In addition, a cosmetic component could also be offered which is not presently available to existing patients. While a startup can be a very rewarding option for a newly minted dermatologist, an acquisition such as this may be an ideal way to jumpstart a career and attain financial success.