 |
|
Entering an Associateship: Tips and FAQs
Two out of three dental graduates choose to enter an existing
practice rather than start their own. Why?
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
|
|
|
