The Value of Tracking Referred-Out Procedures When Planning to Sell Your Practice

When a dental practice is preparing for transition, most doctors focus on collections, overhead, and patient retention. But one area that often gets overlooked is tracking specialty procedures that are referred out.

Why does this matter?

Because buyers want to understand the full potential of a practice, not just the dentistry that is currently being done. If you’re referring out a large amount of endo, implants, oral surgery, or ortho, that represents untapped opportunity for a buyer who has those skills. Without tracking, this potential never shows up in your numbers.

The challenge is that most practices don’t have an easy way to see what they’ve referred out. In fact, many software systems don’t provide a simple report for this. Dentrix, for example, does have a “Referred to Doctor Report,” but not every team uses it consistently. And if your team isn’t entering referrals properly, that report won’t capture the full picture.

Our recommendation? 

If you’re within two years of selling, make it a priority to start tracking referred-out procedures now. Even if it means setting up a manual spreadsheet, the effort pays off when it’s time to present your practice. A clear record of referred procedures can strengthen your valuation and help a buyer see the practice’s growth potential.

In short, buyers don’t just want to know what you are doing, they also want to know what you could be doing. Tracking your referrals is a simple way to highlight that upside.