Associateship contract advice

[Sugarbugs18]

I am graduating dental school in May and received an offer from a corporate chain. I know all the negatives about these places but don't know what other options would be for someone straight out of school in the saturated Northeast.

Trying to decide how good (or bad) this contract is, any advice?

• 18 month contract
• First 12 month - $150,000 cumulative minimum guarantee, accrues at $12,500 monthly but draws would be covered by future months
• No guarantee last 6 months
• 25% of collections
• 50% lab fees
• Independent contractor - no insurance, benefits, etc.
• Focused on Medicaid / kids, Southeastern major metropolitan area

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[Bernie Sanders]

I've heard some chains aren't that terrible. You are probably best served by asking this question on dentaltown.com on the message boards. lots of great practicing dentists on there that give advice. I'd take a look.

 

[beannaithe]

I second the recommendation on posting it on Dentaltown, but I will tell you that the contract sucks. The % of collections is crazy low, the amount of lab fees that you're paying is WAY too high to justify with your collections %, and the independent contractor thing means you're going to be paying both sides of your social security tax (which means you're going to be taking home a lot less than as an employee). Plus, Medicaid fees aren't all that high to begin with so you will not be making very much (at least in my state). Plus, the draw is concerning because you if don't break even, there is a very real possibility that you may be owing money when you leave.

To match break even with your draw, you need to collect $600k. So, assuming you work 5 days a week, 48 weeks a year, you would need to collect ~2500/day. That's a pretty easily attainable number, if the fee schedule is right. That's a pretty easy day (2-3 crowns, an endo, and a bunch of fills) for FFS or even a PPO. But Medicaid, yikes. I'm not sure how Medicaid looks in your state, but it could be tough to hit that.

If you really want to try to make it work with the corp, you'd need a higher percentage (aim for 35%, settle for 30%) and less lab fees (try to get it to be the same percentage as the pay). Or you have a lower percentage and they pay you as an employee. If it were me, I'd pass on the offer unless the offer unless they bring the percentage way up.

Hope that helps.