OD Buys Practice, Now The Seller Is Opening Across The Street

Dear Jerry,

I bought an independent practice in the Midwest from another OD — let’s call him Dr. Joe Jones — about 5 years ago. I was happy to have him work for me during a one-year transition period.

While the practice sold for the appraised value, it soon became apparent that Dr. Jones thought I paid too little. On top of that, he wasn’t as ready to retire as he thought he was.

Unfortunately, we couldn’t get along working together and ended up parting on less than good terms before our one-year agreement expired.

Fast forward to today. Our non-compete has been up for over a year and Dr. Jones just announced that he is going to open a new office across the street from my practice. It's a free country, what can I say? 

But here’s the complicating factor I want your thoughts on.

I bought the name ‘Jones Eyecare’ because it was established for 20-plus years before I got there. I continue to practice under that same name today.

As I understand it, Dr. Jones is going to call his practice City Eyecare, but I am sure he will use his own name in any marketing he does.

That means his practice will be named City Eyecare, Joe Jones, OD and my practice is named Jones Eyecare, Bill Barry, OD.

I could change my practice name, but I think that would just open the door for him to steal my patients.

I have put a lot into this practice in the last five years in terms of both technology and customer service, but people still ask about him.

Any ideas on how to handle this? I don't want to compete on price, which was his strong point, but this is a tough area where price seems to reign supreme.

I've been a long-time reader of your columns and have utilized many of your practice management ideas. Keep publishing, as you are helping a lot of ODs.

Thanks in advance,

Dr. Barry

Dear Dr. Barry,

I can’t wait to see what the readers of Dr. Hayes Blog have to say about this one. Here are my thoughts.

While it is perfectly normal for patients to ask about your predecessor, you have had five years to establish yourself and that should be adequate. 

I generally recommend that ODs compete on service and convenience, not price. That advice stays the same.

Change The Name Or Leave It The Same?

What to call your practice is a tougher question. If you think Dr. Jones is going to be open for business across the street from you on a long-term basis, I would consider gradually changing the name of your practice over some period of time. 

Otherwise, it is going to be an ongoing source of confusion for both your patients and his. And, because he is Dr. Jones, I think the advantage falls to him if you continue to promote your practice as Jones Eyecare.

If you do change the name, you want to do it in a big way and use that announcement as an opportunity to promote your practice.

Since you own the rights to the name Jones Eyecare, you could continue to link your new name to the old name for several years in a way that pre-empts his exclusive use of the name Jones.

For example:
Barry Vision Associates 
(formerly Jones Eyecare)

Or, you could start the process of emphasizing your name immediately and gradually phasing out Jones Eyecare.

For example:
Dr. Bill Barry, Optometrist
Owner of Jones Eyecare

What Should You Do When Naming A Practice?

I think there is a good lesson here for my other readers.

If you buy a practice with a generic name such as Riverside Eye Associates, it’s probably fine to continue to operate under that name.

However, if like Dr. Barry, you buy a practice under another OD’s name, I think it makes sense to use the name while you are getting established, but then phase out the person’s name over time.

Regards,
Jerry

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Disclaimer: The information and opinions contained on this site are for discussion purposes only and are NOT intended to serve as legal, accounting or investment advice. ©2009 Jerry Hayes, OD. Not to be reproduced without written permission of the author.