Dec 31, 2013
4
0
Status
Dentist
I graduated in May of 2009 and completed my residency in July of 2010. I have been working in private practice for three and a half years as an independent contractor and I recently met a few old classmates at a couple of CE courses several months back. Long story short, I am going to leave in a few months and join their practice (three offices to be exact).


I received a generic independent contractor legal doc stating compensation of 35% of collections. I am currently already making 35% of production but the new practices are FFS where as we participate with several insurance companies at my current location.


I will be seeing all new patients as well as all hygiene checks at one of the offices. It will be four days a week.


What should I expect at this point in my career and what do you think I should change, if anything?
 

Shunwei

10+ Year Member
May 26, 2007
924
191
Status
Dentist
I graduated in May of 2009 and completed my residency in July of 2010. I have been working in private practice for three and a half years as an independent contractor and I recently met a few old classmates at a couple of CE courses several months back. Long story short, I am going to leave in a few months and join their practice (three offices to be exact).


I received a generic independent contractor legal doc stating compensation of 35% of collections. I am currently already making 35% of production but the new practices are FFS where as we participate with several insurance companies at my current location.


I will be seeing all new patients as well as all hygiene checks at one of the offices. It will be four days a week.


What should I expect at this point in my career and what do you think I should change, if anything?
At this point in your career why not just go out and get your own practice? If you work for yourself you get everything. I keep on hearing about people not wanting ownership and avoiding the responsibilities, but at the end of the day managing a small dental office is not that hard. And as the owner and not employees, you have full control over your schedule, vision, and working style. There is a reason why surveys show that the happiest dentists tend to be the ones who own their own practice.

Working for friends can also be a tricky situation. You may expect cordiality but at the end of the day it is still business. If their philosophy style is aggressive and yours is not, that can be a major problem. You should also be a bit worried about the collection aspect especially if it is FFS; insurance lowballs sometimes but at least they are pretty certain collections. And no mention of how many NPs per month at the office, so it may not be what you are expecting.
 
OP
T
Dec 31, 2013
4
0
Status
Dentist
At this point, between the house and aggressively paying down my student loans (only two more years to go), I do not feel comfortable financially to do that. In addition, I always wants to be in a multiple partner situation as I don't want the office to sh
 

Shunwei

10+ Year Member
May 26, 2007
924
191
Status
Dentist
At this point, between the house and aggressively paying down my student loans (only two more years to go), I do not feel comfortable financially to do that. In addition, I always wants to be in a multiple partner situation as I don't want the office to sh
different strokes for different folks, then. I have always disliked partnerships. I find people always have their agenda and it is almost impossible to have aligned interests for a sustained period of time. I actually avoid partnerships at all costs.
 
OP
T
Dec 31, 2013
4
0
Status
Dentist
I can completely understand that. Hopefully someone can chime in on the terms of a contract with a dentist that has close to four years of private practice experience as well as a residency. Anyone else been in a similar situation or hired an associate with similar credentials?
 

OhioDMD

7+ Year Member
Jan 25, 2011
237
133
Ohio
Status
Dentist
It has been my experience that 30% of production or 35% of collections are fairly realistic for an associate. You may want to negotiate a daily minimum or draw against future collections for a period of time until you become established. You may be able to negotiate an additional collections bonus should you exceed certain goals (i.e. 2-5% of anything collected by your production over $50,000 per month).

You should have concrete numbers of the number of new patients seen per month on the office you will be spending the majority of your time. Also you should know what % of production they collect and how many patients are on payment plans since both of these will have direct bearing on monthly collections and ultimately your reimbursement. Best wishes on your new endeavor.