How to open a clinic BEFORE you graduate

[dentaljocks]

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Hey guys,

So this is something I've been researching for the past few months so I'm sure I'm not the only one who has done/thought of it. Basically, Im in my second last year of dent school (got 1.5 years to go) in Australia. For those that aren't aware, we don't graduate with all the debt US students seem to graduate with, university fees are about 6-7k per year and the government pays for it when you're in school then you pay it back when you graduate over as long as you want with "no interest". So thats not really not an issue for us aussie kids.

Why open a clinic before I graduate? point is to hire a senior dentist (working on decent commission) to look after the place with 1 DA + receptionist for the next FEW YEARS.
i say few years because its generally discouraged in Aus to open your own clinic straight out, down under, its always advised work with someone else, build your skills then go for it so avoid a bad reputation from the start. So it's something that I would hope to see grow for a few years until I'm ready to step into it.

From the research I've done, it seems quite doable with about 30k saved up and buying second hand equipment to lower costs. I've been saving quite a bit so I think I'll have that number by early next yr/end of this year which is when I would hope to get he ball rolling.

I've already been told by many that its a crazy idea, but many of those ppl also believe things should only be done the same way they did it. Im all in on this and I'd be happy to share point as I go through it, I would like to hear from those with some form of experience in this or those who have considered it. I've gone through most of the other thread "lets buy a clinic" and it's been a great insight, I still feel I'll need more guidance and help trying to open a clinic before I graduate and wanted to hear specifically from people who have done it or considered it.

So my questions to the masses is, who's done this? What difficulties? How'd you find it? Thing to look out for?

 

[DrJeff]

Hey guys,

So this is something I've been researching for the past few months so I'm sure I'm not the only one who has done/thought of it. Basically, Im in my second last year of dent school (got 1.5 years to go) in Australia. For those that aren't aware, we don't graduate with all the debt US students seem to graduate with, university fees are about 6-7k per year and the government pays for it when you're in school then you pay it back when you graduate over as long as you want with "no interest". So thats not really not an issue for us aussie kids.

Why open a clinic before I graduate? point is to hire a senior dentist (working on decent commission) to look after the place with 1 DA + receptionist for the next FEW YEARS.
i say few years because its generally discouraged in Aus to open your own clinic straight out, down under, its always advised work with someone else, build your skills then go for it so avoid a bad reputation from the start. So it's something that I would hope to see grow for a few years until I'm ready to step into it.

From the research I've done, it seems quite doable with about 30k saved up and buying second hand equipment to lower costs. I've been saving quite a bit so I think I'll have that number by early next yr/end of this year which is when I would hope to get he ball rolling.

I've already been told by many that its a crazy idea, but many of those ppl also believe things should only be done the same way they did it. Im all in on this and I'd be happy to share point as I go through it, I would like to hear from those with some form of experience in this or those who have considered it. I've gone through most of the other thread "lets buy a clinic" and it's been a great insight, I still feel I'll need more guidance and help trying to open a clinic before I graduate and wanted to hear specifically from people who have done it or considered it.

So my questions to the masses is, who's done this? What difficulties? How'd you find it? Thing to look out for?

Not sure of the rules in Australia, but atleast in the US, in order to own a dental practice/clinic, one has to be a licensed dentist. If that's the case in Australia too, that would prevent that idea of yours from happening

 

[dentaljocks]

Thanks for your reply Dr Jeff

Fortunately for my case, that isn't the law in Australia 🙂
Unfortunately however, that means anyone with the money can go off and do this, and theres been stories of groups of accountants opening up dental clinics with the sole focus being on the bottom line ... will be interesting to see how this unfolds in the future as more people realise this but for now I would say that in Australia, non-dentists opening up dental clinics is fortunately a very rare occurrence.

I'd like to hear any feedback from others about this idea of opening a clinic before graduating and what they could see as more hurdles

 

[Cold Front]

Thanks for your reply Dr Jeff

Fortunately for my case, that isn't the law in Australia 🙂
Unfortunately however, that means anyone with the money can go off and do this, and theres been stories of groups of accountants opening up dental clinics with the sole focus being on the bottom line ... will be interesting to see how this unfolds in the future as more people realise this but for now I would say that in Australia, non-dentists opening up dental clinics is fortunately a very rare occurrence.

I'd like to hear any feedback from others about this idea of opening a clinic before graduating and what they could see as more hurdles

In the US, dental insurance companies will not enroll you into their programs to see patients who have their insurances. Meaning, they will need you to graduate first, get a malpractice insurance (getting one also needs you to graduate first), and above all, no state will allow you do open a dental clinic as mandated by regional dental boards, who also do FBI background checks and host of other staff to just license you as a dentist.

It's in the best interest of the public that only dentists should own/co-own a dental clinic..

 

[dentaljocks]

In the US, dental insurance companies will not enroll you into their programs to see patients who have their insurances. Meaning, they will need you to graduate first, get a malpractice insurance (getting one also needs you to graduate first), and above all, no state will allow you do open a dental clinic as mandated by regional dental boards, who also do FBI background checks and host of other staff to just license you as a dentist.

It's in the best interest of the public that only dentists should own/co-own a dental clinic..

Thanks Cold Front,

Few points you've brought up. Australia doesn't need you to be a registered dentist to open a practice, however, of course like any developed country, you need to be a registered dentist to actually perform dentistry on pts. This is where I would bring in a senior dentist to take care of the patients. Knowing that I will one day step into this clinic as my own, I'll be sure to select someone who will offer the patients a high quality of honest service because at the end of the day, the reputation he/she leaves behind will be the one I will carry on with.

You mentioned insurance. Not sure how it works in the states but regarding malpractice etc, that type of dentist insurance would be the dentist's responsibility to get, from my end, running the practice, I would only need insurance as a business rather than a health professional.

So it would come down to running the practice as a "business" from a legal perspective that hires a dentist to undertake all the dentistry provided (who would be covered by their dental malpractice insurance etc). This is a legal structure as far as I am aware in Australia.

Thank you for bring these points up, its good to have arranged things into perspective for everyone. again, to sum it up, I would NOT be providing any of the services, it would be a way to build a practice up until I am ready to go at it on my own and step into it.

Please keep the feedback coming.
Thank you!

 

[ortho lurker]

Thanks Cold Front,

Few points you've brought up. Australia doesn't need you to be a registered dentist to open a practice, however, of course like any developed country, you need to be a registered dentist to actually perform dentistry on pts. This is where I would bring in a senior dentist to take care of the patients. Knowing that I will one day step into this clinic as my own, I'll be sure to select someone who will offer the patients a high quality of honest service because at the end of the day, the reputation he/she leaves behind will be the one I will carry on with.

You mentioned insurance. Not sure how it works in the states but regarding malpractice etc, that type of dentist insurance would be the dentist's responsibility to get, from my end, running the practice, I would only need insurance as a business rather than a health professional.

So it would come down to running the practice as a "business" from a legal perspective that hires a dentist to undertake all the dentistry provided (who would be covered by their dental malpractice insurance etc). This is a legal structure as far as I am aware in Australia.

Thank you for bring these points up, its good to have arranged things into perspective for everyone. again, to sum it up, I would NOT be providing any of the services, it would be a way to build a practice up until I am ready to go at it on my own and step into it.

Please keep the feedback coming.
Thank you!

One more thing to consider: does Australia have non-compete policies for associates? Non-compete contracts for associates are NOT enforceable here in California so your associate could open a practice next door and move all the patients with him/her.

 

[Cold Front]

Thanks Cold Front,

Few points you've brought up. Australia doesn't need you to be a registered dentist to open a practice, however, of course like any developed country, you need to be a registered dentist to actually perform dentistry on pts. This is where I would bring in a senior dentist to take care of the patients. Knowing that I will one day step into this clinic as my own, I'll be sure to select someone who will offer the patients a high quality of honest service because at the end of the day, the reputation he/she leaves behind will be the one I will carry on with.

You mentioned insurance. Not sure how it works in the states but regarding malpractice etc, that type of dentist insurance would be the dentist's responsibility to get, from my end, running the practice, I would only need insurance as a business rather than a health professional.

So it would come down to running the practice as a "business" from a legal perspective that hires a dentist to undertake all the dentistry provided (who would be covered by their dental malpractice insurance etc). This is a legal structure as far as I am aware in Australia.

Thank you for bring these points up, its good to have arranged things into perspective for everyone. again, to sum it up, I would NOT be providing any of the services, it would be a way to build a practice up until I am ready to go at it on my own and step into it.

Please keep the feedback coming.
Thank you!

What is the cost benefit in building a dental office that you will not use until you graduate?

You will be accruing more debt if you have an office that is ready but not open for service while you are in school. Plus, which bank will finance this scheme for you? US banks would turn you down at the door.

 

[djeffreyt]

you may want to try asking on dentaltown...they tend to have more international dentists and so might have people who can better answer the specifics of how to open in Australia

 

[dentaljocks]

One more thing to consider: does Australia have non-compete policies for associates? Non-compete contracts for associates are NOT enforceable here in California so your associate could open a practice next door and move all the patients with him/her.

Yes, Australia does allow non-compete contract so that's def something I would look at including in a contract, thank you for bringing that up! Good point!

What is the cost benefit in building a dental office that you will not use until you graduate?

You will be accruing more debt if you have an office that is ready but not open for service while you are in school. Plus, which bank will finance this scheme for you? US banks would turn you down at the door.

As mentioned, the practice WILL be open for service with another dentist providing the services. I plan to only open the clinic for 2 or 3 days (probably weekend) to start with to keep costs down, so this should cover expenses. I figure sat and sun are the busiest days so this should help keep it in the green easiest.

Finance, again as pointed out, I will lease out a premises with low overhead, and bring in second hand equipment where I can and lease out the rest, I imagine this would be possible with about $30k if planned out properly.

For extra cash there are finance companies here in Australia that offer unsecured loans to dental and medical students (upto about $10k) that you can use for any reason and simple have to pay back in full 6 months after graduating, I'd hope to make that back before graduating anyway so it would be something I would use to get things started.

Can anyone think of any other obstacles??

 

[KAIN DDS]

Thanks Cold Front,

Few points you've brought up. Australia doesn't need you to be a registered dentist to open a practice, however, of course like any developed country, you need to be a registered dentist to actually perform dentistry on pts. This is where I would bring in a senior dentist to take care of the patients. Knowing that I will one day step into this clinic as my own, I'll be sure to select someone who will offer the patients a high quality of honest service because at the end of the day, the reputation he/she leaves behind will be the one I will carry on with.

You mentioned insurance. Not sure how it works in the states but regarding malpractice etc, that type of dentist insurance would be the dentist's responsibility to get, from my end, running the practice, I would only need insurance as a business rather than a health professional.

So it would come down to running the practice as a "business" from a legal perspective that hires a dentist to undertake all the dentistry provided (who would be covered by their dental malpractice insurance etc). This is a legal structure as far as I am aware in Australia.

Thank you for bring these points up, its good to have arranged things into perspective for everyone. again, to sum it up, I would NOT be providing any of the services, it would be a way to build a practice up until I am ready to go at it on my own and step into it.

Please keep the feedback coming.
Thank you!

Not to be an ***** h0/& but wtf is the point. Why not wait you have no debt, yr young what's rush?! Plus yr talking to Americans abt aussie things. I'm dumb, must be, bc I find no logic in this other than to show off, or pass on polite useless convo. Schools don't run on such low money in aussie land unless there's no money to made by the schools or faculty. The public pays for it, by way of tax dollars ... U do have that? Usually in countries like that things are better for the commoner( average person) but wages top out at abt 170k, bc its part of universal health which is better for the public but if i go to school for yrs best believe i better be grossing 3 times the average mans salary! in American which believe I don't care for, ( politices, rude such as me, greedy etc) earnings are up to yr abilities. Advice where talking abt Aussie land which I like do tell the neg. along with positives otherwise we are confused. If aussies have something then next country has something better than the Aussies point being it evens out. Thanks

 

[dentaljocks]

Not to be an ***** h0/& but wtf is the point. Why not wait you have no debt, yr young what's rush?! Plus yr talking to Americans abt aussie things. I'm dumb, must be, bc I find no logic in this other than to show off, or pass on polite useless convo. Schools don't run on such low money in aussie land unless there's no money to made by the schools or faculty. The public pays for it, by way of tax dollars ... U do have that? Usually in countries like that things are better for the commoner( average person) but wages top out at abt 170k, bc its part of universal health which is better for the public but if i go to school for yrs best believe i better be grossing 3 times the average mans salary! in American which believe I don't care for, ( politices, rude such as me, greedy etc) earnings are up to yr abilities. Advice where talking abt Aussie land which I like do tell the neg. along with positives otherwise we are confused. If aussies have something then next country has something better than the Aussies point being it evens out. Thanks

Kain, I hope you don't take offense easily but you seem to have a tendency to veer off topic easily. You're welcome to go back and read my original post, I'm here to bounce an idea off people that I hoped to have more experience. I laid out my idea, how I would do it and asked for people to help find gaps and faults. You'd be surprised how many Aussie dent student read these forums which is why it was my first place to visit, someone above pointed me to dental town and that's been very helpful in this sort of topic so fear not I won't be requesting help on this topic here as I think dt might be more appropriate.

As to why, as explained (twice I think?) it's not encouraged to open and work in your own practice straight out of school in aus, so why not have one getting set up and building a patient base until I'm ready. As to why while I'm in school because I like a challenge? I don't see any other reason not to.

You went off talking about land some random stuff about Aus vs US in land and fees? Sorry but that didn't make any sense to me and perhaps it's on a diff topic than this? Again, I hope you don't get offended easily. Intentions were to raise faults in the idea and address them, thank you for your interest

 

[KAIN DDS]

Kain, I hope you don't take offense easily but you seem to have a tendency to veer off topic easily. You're welcome to go back and read my original post, I'm here to bounce an idea off people that I hoped to have more experience. I laid out my idea, how I would do it and asked for people to help find gaps and faults. You'd be surprised how many Aussie dent student read these forums which is why it was my first place to visit, someone above pointed me to dental town and that's been very helpful in this sort of topic so fear not I won't be requesting help on this topic here as I think dt might be more appropriate.

As to why, as explained (twice I think?) it's not encouraged to open and work in your own practice straight out of school in aus, so why not have one getting set up and building a patient base until I'm ready. As to why while I'm in school because I like a challenge? I don't see any other reason not to.

You went off talking about land some random stuff about Aus vs US in land and fees? Sorry but that didn't make any sense to me and perhaps it's on a diff topic than this? Again, I hope you don't get offended easily. Intentions were to raise faults in the idea and address them, thank you for your interest

First off,I'm sorry probably nicotine withdrawal, and not reading enuff of the posts. Except for the part abt school cost, unless u can show me tax rates. I'm not offended at all I'm sorry I bothered u, I just understood the wrong point.