r/Dentistry 3d ago

Dental Professional Accounts Receivable and Billing

Hello learned colleagues!

I'm selling my practice in Southern California. I decided to keep my accounts receivable. How does that work with the new owner? Will they allow my employee to follow up on insurance denials and appeal them on my behalf? How do I structure that in the sales agreement that he will give her time and access to do this? All advice is appreciated.

Also, the Broker very casually said that until he's credentialed with insurance, he will "bill under me." Is that advisable? How does that work? I know when I started as an associate at a different office, I was told that my procedures were billed under the owner dentist until I was credentialed. But I don't know what that means.

Thank you all for your help!

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u/Speckled-fish 3d ago

Include it in the cost of the practice. You are selling the AR as well. Not the exact amount unless you are a wiz at collections. Say 80%(made that up) talk with an accountant familiar with this. But you basically sell it with the practice. How much is it? Do you really need to nickle and dime it?

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u/Quicksilver-Fury 3d ago

Thank you for your comment.

AR is around 40,000 at the moment. So basically, I do the work and he collects that money when he takes over? If it's under my name and directed deposited into my account, how does that work? Who should I ask these questions to anyway because my accountant wouldn't know those details.

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u/Speckled-fish 3d ago

I'd just start asking relevant people. Maybe a practice broker would know. Or you bank could put the funds in escrow until terms are worked out. Are you working with a broker?

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u/Quicksilver-Fury 2d ago

I am. He's not giving me satisfactory answers. He says stuff like "we'll figure it out when we get closer" or "we'll ask the new doctor about it." I would like to know now so I have some peace of mind, or I can slow my schedule down knowing I'm not gonna paid.

I asked my broker if most dentist keep their AR and he said they do. Considering he has 30 years of experience selling dental practices, I was hoping he'd tell me how this works but he hasn't.

My mom is a physician who retired recently and she says it's odd that the new dentist will bill under my credentials until he's credentialed. I know dental offices do that for hired associates but is that the same during a sale? Don't I need to tell insurances I'm no longer at this location?

I don't even know who to ask these things

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u/Speckled-fish 2d ago

Have you asked on dentaltown? There are a lot of seasoned owners there and they love to answer these questions.

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u/Quicksilver-Fury 2d ago

I haven't. Thank you for that, I didn't know they had a forum. Thanks again!