Acquisition of Dental Practices, Genix Healthcare

Overview

  • To establish the basis on which NHS Dental Practices, including professional standards and legislation and annual contract and payments.

  • To identify suitable practices for purchas e and extending.

  • To establish professional standards and recruitment protocols for non UK Dentists.

  • The client was intent on purchasing and operating up to two hundred NHS Dental practices within three years.

CPA’s Approach

  • To identify the UK national professional standards for Dentists registered to practice in the UK.

  • Clarifying with eth General Medical Council the UK registration requirements for both UK and non UK trained Dentists.

  • Identifying all registered Dental Practices in each Primary Care Trust in the Leeds, Bradford, York Rotherham and Scunthorpe areas.

  • Determining which Dental practices were for sale.

  • Inspecting each practice which was for sale, establishing their trading accounts, NHS contracts – payments, patient lists and expansion potential

  • Establishing the normal cost basis for each key activity and determining the normal and projected profit base and investment needs.

  • Setting up recruitment activities for non UK Dentists

Findings

  • There was a national shortage of UK trained and registered Dentist resulting in a shortage of Dental Practices.

  • Non UK Dentists could, if carefully selected practice in the UK,

  • The proposed new NHS Dental contracts (April 2006) were causing concern and an increasing number of NHS Dentists were “going private”.

  • Primary Care Trusts wanted to either replace and / or expand the number of NHS Dental practice (subject to central funding).

  • A reasonably organised NHS Dental practice could operates in profit at a rate of between £20 - £40 k per chair.

  • The existing UK law under which only Dentists can profit from dental work is likely to change (April 2006) to allow private companies to employ Dentists and to hold dental contracts

Outcomes

  • The first four Dental practices have been purchased and existing dental contracts continue.

  • Overseas Dentists are now being recruited, registered and placed into the practices.

  • Expansion proposals are / have now been submitted to the Primary Care Trusts.

  • An operating company has now been established.

  • Permanent “contract” staff are now in place.

  • The new company can now purchase more NHS Dental practices and expand using to advantage economy of scale.


“We would not be in the position we are now if it had not been for your initial work and professional lead” Retained Financial Advisor, Genix Healthcare


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