RE: Formula for Value of a Practice
From: David Helfman, DPM
After reading all the articles on valuations of a practice, I would like to try to summarize the topic to ensure we are all comparing apples to apples. The reality is that everyone has given good input but I would like to offer a simple and concise summary of valuation methodologies that will be easy to understand based on real life experience.
There really are no rules of thumb anymore, and selling a practice is like selling any other service business, so it’s important to understand who is buying your practice and then you can come up with a logical formula and rationale for valuing your practice. I think the easiest way to
start this process is to put your practice in one of three buyer buckets.
1. Buyer: Current associate or new podiatrist wanting to buy...
Editor's Note: Dr. Helfman's extended-length letter can be read here.
From: Bryan C. Markinson, DPM
Dr. Borreggine's concern is legitimate but not from the perspective of the elimination of podiatry, but that the DPM degree does not allow us full scope. The step up of ancillary providers such as NPs and PAs is a natural extension of the changing environment in medicine that enables patients to get seen and still be economically solvent. There is no turning back from this.
The best approach for DPMs by far is to let every full scope nurse practitioner in your community know your availability and what you can do. Even lecture to them at their meetings. From my own personal experience, the one NP who decides to do foot care is completely outnumbered by the rest that will not. Nurse practitioners are a steady consistent source of patients in my practice.
All we have to do is show up at the dance! Attend the hospital meetings of dermatology, endocrine, vascular, etc. They will flood your office.
Bryan C. Markinson, DPM, NY, NY
RE: The Importance of H.R. 3016
From: Evan Meltzer, DPM
I believe that all podiatrists should be aware that a very important bill is being considered by Congress. H.R. 3016, AKA the Provider Pay Equity Act has passed the House Veterans Affairs Committee and will hopefully be on the schedule for voting by the full House. If passed, it will bring the pay level of podiatrists working for the VA commensurate with physicians' pay in the VA. The Senate has several sponsors for their version of this bill if the House passes H.R.3016.
I urge all non-government podiatrists to write to their Congressional representatives in support of this bill (government employees cannot lobby Congress directly, but their spouses can!). If passed, this bill will, no doubt, have a trickle-down effect to other government agencies such as DOD, IHS, and the military.
Evan Meltzer, DPM, San Antonio, TX
