If you are expanding and can no longer keep up with the number of patients coming in the door, or if you are looking at reducing your working hours for quality of life reasons, you will likely want to bring on an associate dentist. Hiring an associate dentist is not like hiring other staff, and there are some additional considerations to keep in mind:
What Should I Look For In An Associate?
When looking for an associate, you have to decide whether you are willing to train someone just out of dental school, or whether you are willing to pay a higher price for an experienced dentist. Before you start looking, you should determine what the market is like for associate dentists, and whether you want to hire a headhunter to find the ideal candidate for your practice. Depending on market conditions and the practice location, you may also need to offer incentives to the dentist, such as profit-sharing or the potential for ownership over time.
How Should I Compensate An Associate?
Once you find the right associate, you will need to decide how to pay him or her. Most offices pay a fixed percentage of production or collections, with the percentage varying based on the associate’s experience. Others will pay a set per diem rate. You can also have a hybrid rate – a guaranteed minimum, with incentives for making higher production goals. Finally, you must decide whether to bring the dentist on as an independent contractor or as a W-2 employee. The choice about which structure to pursue will often depend on the unique circumstances of your practice.
Do I Need An Employment Agreement?
Although employment agreements are not legally required, they are vital. They set out the compensation to be paid to the associate, as well as other terms like vacation and sick leave, healthcare and other benefits. Perhaps the most important term that must be in every employment agreement is the restrictive covenant, which will limit the associate’s ability to contact your patients in the event he or she leaves the practice.
How Can I Protect My Investment In An Associate?
This should be a part of every associate employment agreement. It is frequently called a restrictive covenant because it is a promise by the associate that he or she will refrain from engaging in certain competitive activities with your practice. The restrictive covenant typically has three components: (1) the covenant not to compete, which restricts a dentist’s ability to practice within a certain geographical are for a designated time after leaving the practice; (2) the patient non-solicitation agreement, which prevents the associate from directly soliciting your patients after he or she leaves your practice; and (3) the employee non-solicitation agreement, which prevents the associate dentist from poaching your employees after leaving the practice. These are all vital to ensure that an associate does not steal your practice’s goodwill.
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While we are making an effort to share general knowledge with the dental community and answer dentists’ questions, this not a substitute for individualized advice from an experienced healthcare lawyer. If you would like to speak with our attorneys and have them take an in-depth look at your particular situation, please feel free to contact us directly.