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Entering an Associateship: Tips and FAQs
Two out of three dental graduates choose to enter an existing
practice rather than start their own. Why?
It’s less expensive than starting a new
practice. It’s transition
friendly. It’s less stressful than running a
practice.
Entering an associateship is not an easy decision. You need to have a
thorough understanding of the agreement that you and the owner dentist
enter. These tips and frequently-asked questions will help you get the
most of the experience.
In general, what can I expect from an associateship?
A 2004 Survey by the American Dental Association Survey
Center gathered the following information on common aspects of
associateships.
Compensation: On average, full-time associates were earning
a net income of $112,270 per year, $117,130 per year for specialists
(based on national average). Method of compensation:
Varied by contract. Some dentists received an annual salary
while others received a percentage of production or an hourly
wage. Benefits: Varied by contract. Some common
benefits included health insurance, malpractice insurance, paid
vacation, paid membership dues in organized dentistry and reimbursement
for continuing education. Duration: Terms range
from 1 year to 10 years or more. The average term for an
agreement was 1.7 years. Legal detail: The vast
majority of contracts contained conditions for contract termination,
payment methods, and a “non-compete”
agreement.
Other important components include:
A formal contract: Every associateship should involve a
formal contract between the prospective associate and the
practitioner. The contract should describe, in detail, legal
elements such as the associate’s obligations, remuneration and
expenses, employer’s property, etc. As the next section shows, it
is vital to understand every aspect of this
agreement. An employment attorney: Graduates
considering an associateship should anticipate and hire an
employment attorney to review the conditions of the associateship
contract.
How should I evaluate an associateship
contract?
Careful evaluation of the contract is critical. You do not want to rush
into the agreement and later discover that you dislike or were unaware
of the implications of its formal provisions. Common components
you will encounter include employee status; term and time of contract;
remuneration and expenses; obligations of associate; obligations of
employer; termination of agreements; non-competition and
non-solicitation; potential buy-out; probationary period; right of first
refusal; and marketing materials. Be sure you understand each of these
elements. If necessary, consult a legal dictionary. Also, make sure
you have a legal advisor who can guide you through the contract and help
you make a decision that it is in your best interest.
What advice would other graduates who have undergone this procedure
provide?Consult others with
experience. Contact dentists in your area to see
associateship contracts they have signed. Use successful contracts as a
model for your own. Consult a legal advisor who is
familiar with evaluating dental contracts. Learn to
talk figures with people. Don’t be afraid to ask blunt questions
about your salary requirements and preferred methods of
payment.
How can I search for an
associateship?Are there any other
printed resources on associateships you would
recommend?Use the ADA Catalog to order
Associateships: A Guide for Owners and Prospective Associates.
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