Associateship contracts....

[MsPurtell]

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Hi everyone. I'm looking at an associate position and we've just about reached the point where it's time to start drawing up a contract. I went back over the archives and asked some friends....I'm trying to come up with crucial items that should be detailed in any dental associate's contract. If there's anything anyone can add, that'd be great!

1) terms of compensation (will it be a flat rate, % of production, %of collections)
2) who is responsible for paying the lab bills that the associate's pts generate?
3) is there any potential for partnership and within what time frame?
4) terms of dissolving the agreement (how many days notice before one can leave the practice)
5) covenant not to compete (employers may try to stipulate that, if you leave, you cannot hire any of their employees within a certain amount of time, cannot treat former pts, or cannot practice within a certain radius of their practice).
6) benefits (medical, dental, life, 401k, malpractice, disability, vacation, sick leave, CE)
7) will the associate be reimbursed for obtaining licensure, DEA#?
8) expected work schedule
9) who covers emergencies
10) how will cases be distributed?
11) insurances the associate will be expected to sign up with

Anything else? Am I incorrect with anything I've listed above? I know it's always advisable to consult an attorney before signing a contract. Should I be going specifically to a lawyer who handles contracts for dentists?

 

[DrJeff]

Hi everyone. I'm looking at an associate position and we've just about reached the point where it's time to start drawing up a contract. I went back over the archives and asked some friends....I'm trying to come up with crucial items that should be detailed in any dental associate's contract. If there's anything anyone can add, that'd be great!

1) terms of compensation (will it be a flat rate, % of production, %of collections)
2) who is responsible for paying the lab bills that the associate's pts generate?
3) is there any potential for partnership and within what time frame?
4) terms of dissolving the agreement (how many days notice before one can leave the practice)
5) covenant not to compete (employers may try to stipulate that, if you leave, you cannot hire any of their employees within a certain amount of time, cannot treat former pts, or cannot practice within a certain radius of their practice).
6) benefits (medical, dental, life, 401k, malpractice, disability, vacation, sick leave, CE)
7) will the associate be reimbursed for obtaining licensure, DEA#?
8) expected work schedule
9) who covers emergencies
10) how will cases be distributed?
11) insurances the associate will be expected to sign up with

Anything else? Am I incorrect with anything I've listed above? I know it's always advisable to consult an attorney before signing a contract. Should I be going specifically to a lawyer who handles contracts for dentists?

That's a very solid list that will cover the vast majority of potential situations. About the only thing I can think of that you might want to get in writing in a contract is hygiene checks of patients that "aren't yours" when the patient's regular doc isn't there. Will you get credit for the check or will the senior dentist get credit???

The only other thing might be about instrument purchases if their's something that the practice doesn't have that you want. Would that purchases be something that the practice absorbs, or will it come out of your pay??

As for my opinion about what is "fair" for your list:

1) For starters a guarenteed daily per diem for you, with a "bonus" for you on days/weeks when your collections are over your per diem rate (feel free to try and negotiate for bonus pay based on your production though) Bonus % to be fair, depending on the office overhead should be in a range of 30 to 40% of collection or production.

2) The practice should pay all 1st time lab bills, remakes may very well be your dime

3) DEFINATELY get the partnership potential in writing, with a plan for determining the practice's buy in value for you now.

4) Usually a month is typical, and if the partner is "terminating" you, it should be spelled out how your "buy-out" will happen.

5) Distance depends on population density. Restricting patients from leaving on their own free will to goto your new practice is a bit ridiculous IMHO. "Taking" employees with you will usually carry a "price tag" per employee to the senior doc.

6) Benefits: You should expect, CE, Uniform, Vacation, retirement (if offered) Health Insurance (if offered - dental is usually not offered since you'll ususally be taken care of in the practice and/or by the specialists you'll refer too) Malpractice/Life/Disability will vary based on the practice, plus if it's not an included benefit from work, there are often some tax benefits if you pay them "out of pocket"

7) License/DEA reimbursement will depend on the practice - once again if the practice doesn't cover it, you'll get a tax rite off

8) Don't get too specific about your schedule, except for maybe "fulltime", this gives you flexibility

9) Get it spelled out about emergencies. What's a "smart" idea is each doc cover's their own patients except when on vacation

10) Get it spelled out in a way that gets you as many as possible.

11) Be very cautious if the senior doc insists that you to sign up for more plans than he/she is. If you want to, great, but you shouldn't be forced too.

 

[small]

Great subject and great reply. I'm filing this one away for the future.

 

[toofshucker]

We had an accountant come in and go over all this with us last Monday and most of what he recommended is in this thread already. A fewthings he said to have/know are:

1) See how much the doc made in the last year to make sure that he can actually afford to pay you what he says he will. If he hires you and you don't see any patients, can he afford your salary (this is assuming you are getting a minimum, which you should).

2) Make sure your name is just as prominent as his name. Same size, locations, etc. You don't want to walk into a room and have a patient say, "who is Dr. X?" They should know you are one of the doctors at the facility the moment they get there.

3) Spell out what type and how many procedures you will be getting. Too many docs hire an "associate" doc to do hygiene, pedo and dentures because it is cheaper for them than hiring another hygienist/doing it themselves.

Protect yourself. You are there to make the doc money, and for no other reason. BUT that doesn't mean you should get screwed either.

 

[MsPurtell]

Thank you so much guys! Your advice is priceless.

I am toying with the idea of working as an associate for a year or so and then venturing out on my own. I've talked to several people who've started practices from scratch and the thought has entered my mind. I'm thinking about the possibility of going to a shortage area eventually and starting up my own practice.

For now, I know I've got to get everything in writing and really make sure I'm paid what I'm worth.