Hiring an associate for your dental practice isn't a process to be taken lightly. Not only are you hiring someone who will be working with you and your patients for a long time to come, but you're also setting the stage for a professional relationship that could last through the duration of your practice. As you create your associate dentist employment agreement, make sure you're giving serious consideration to these key concerns.
When you first bring on a new associate dentist, you can't know how well they're going to work out for your practice. You want to be sure that you're getting someone who will be a good fit for you--not to mention being sure that your contract is working for both you and the new associate. Choose a reasonable term for the contract so that you can reevaluate your specific needs when it's over. You can always sign a new one when it's over, but knowing that there is a clear end will make it easier for both of you to handle the contract--and give you the opportunity to renegotiate terms that aren't working.
Many young dentists may prefer to work as an associate for a few years before they dive in with their own practice--or a dentist may find that they prefer working as an associate to pursuing a partnership. It's important, however, to clearly define the responsibilities of the associate. What hours is the associate responsible for working? Is the associate responsible for bringing in patients, or is all advertising on the shoulders of the owner(s)? Clearly defining the responsibilities of your new associate in your associate dentist employment agreement will ensure that everyone is on the same page and knows what is expected of them.
When you bring on an associate, are they an employee of the practice, or can they be considered an independent contractor? How you choose to define this role will determine a number of things, including how you pay your associate and how their taxes are filed. Make sure that the employment agreement clearly defines their status and how these issues will be handled in order to make sure that everyone is on the same page--and to make sure that there are no surprises come tax time.
Are you compensating your associate on an hourly basis, salary, per diem, or percentage of production/collection? It's important to clearly set out the terms of compensation since this is a key area of concern for most employees. Your new associate needs to know how they're going to be paid, what they're going to be paid for, and how much they can expect to be paid for their work. A percentage of what you make from the patients they see? Make sure that you offer an associate agreement that you can live with. Take into consideration the possibility of a growing practice and additional associates as you write the terms of that contract. It may also be helpful to define how the associate will be scheduled: are you guaranteeing full-time hours, or are they working for you on an as-needed basis?
When you bring in an associate, they're going to work closely with the patients you've found for your practice--and in some cases, the patients who see them more than they see you may prefer them! If your associate chooses to leave your practice, how does that have the potential to impact your patient base? A restrictive covenant will help prevent your new associate from taking any of your patients with them when they leave the practice. Keep in mind, however, that depending on their future goals, your associate may want to be able to open a practice in the same area as yours--and an excessively restrictive contract may prevent them from signing on with your practice. Also, some states do not allow restrictive covenants so make sure you check with your state’s laws.
In any dental practice, there’s the risk of negligence, dental malpractice, and other potential legal complications. Chances are, you have an extensive array of insurance to help protect your practice against those legal consequences. Your new associate, however, will also need to carry certain types of insurance in order to protect them and your practice--and you need to make sure that their actions are covered by your policy. Take the time to evaluate your current insurance policies, then make sure your employment agreement includes any information about insurance that your new associate needs to carry in order to meet legal requirements and protect the practice as a whole.
You've signed a contract for a specific duration with your new associate dentist--but that doesn't mean you're locked into the contract no matter what they do. While an irritating, frustrating employee can make work conditions irritating, it's not usually grounds for firing them, either. Make sure that your contract includes the terms under which your associate can be fired. Clearly define the behaviors that you expect of an employee of your practice and make it clear that you will take action if your goals aren't met. This simple strategy can make the difference between a bad associate that you're stuck with and one that you can easily dismiss--not to mention ensuring that you're covered if they seek unemployment or try to claim that you fired them for invalid reasons.
Writing a strong dental associate employment agreement is one of the most effective ways to protect your practice, yourself, and your new associate. Working with a legal professional can help you draft your initial agreements so that you end up with an effective agreement that is written with the best possible terms for both you and your associate--and give you more confidence that you're signing a fair and equitable agreement.
Get Expert Guidance on Hiring an Associate Dentist
At Dental & Medical Counsel, we have extensive experience helping dental practice owners navigate the complexities of hiring an associate. From drafting employment agreements to ensuring compliance with state laws, our team is here to protect your interests and set your practice up for long-term success. Contact us today to speak with a member of our team about hiring an associate dentist.
Frequently Asked Questions
Q: How long should an associate dentist contract last?
A: The contract should have a reasonable term, allowing both parties to assess fit and renegotiate terms if needed. A defined end date provides flexibility for adjustments.
Q: What key responsibilities should be outlined for an associate dentist?
A: Clearly define work hours, patient acquisition expectations, and other duties to ensure both the owner and associate understand their roles.
Q: Should an associate be classified as an employee or an independent contractor?
A: This depends on your practice’s structure. Employment classification impacts taxes, benefits, and compensation, so it must be clearly stated in the agreement.
Q: How should an associate dentist be compensated?
A: Compensation can be structured as a salary, hourly rate, per diem, or a percentage of production/collections. The agreement should outline payment terms in detail.
Q: What is a restrictive covenant, and should I include one?
A: A restrictive covenant limits where an associate can practice after leaving your office, protecting your patient base. However, some states prohibit these clauses, so check your state laws.
Q: What insurance coverage should an associate carry?
A: Associates typically need malpractice insurance, and the agreement should specify whether they must obtain their own coverage or if they’re covered under the practice’s policy.
Q: Can I terminate an associate dentist before the contract ends?
A: Yes, but the contract should define valid reasons for termination, ensuring legal protection for the practice.
Q: What should I consider when scheduling an associate’s hours?
A: The agreement should clarify whether the associate is guaranteed full-time hours or working on an as-needed basis to prevent misunderstandings.
Q: How can I ensure my associate contract is fair and legally sound?
A: Consulting a legal professional ensures your agreement is well-structured, compliant with laws, and beneficial for both parties.
Q: What legal risks should I consider when hiring an associate?
A: Legal risks include malpractice claims, contract disputes, and employee classification issues. A well-drafted agreement helps mitigate these risks.
At Dental & Medical Counsel, we've been instrumental in realizing the practice goals of countless dentists. Whether you're looking to purchase, launch, or sell a dental practice, our expertise is your guide. Beyond the initial stages, we're committed to ensuring your dental practice remains legally compliant.
We provide comprehensive support, including employment law protections, dental contract reviews, and assistance with dental employment agreements. Additionally, we specialize in incorporating dental practices and securing trademarks. And for long-term planning, our services extend to helping dentists with succession and estate planning. Trust us to be your partner in every step of your dental practice journey.
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About Ali Oromchian, Esq.
Your Dental Lawyer
Ali Oromchian, JD, LL.M., is a leading legal authority in dental law and the founding attorney of Dental & Medical Counsel, PC, with over two decades of experience. His deep connection to dentistry comes from his wife's nearly two-decade-long career as a pediatric dentist.
This personal insight fuels his dedication to empowering dentists to navigate their legal challenges and achieve their practice goals. In doing so, Ali has helped thousands of doctors open their practices while maintaining legal compliance.
Ali is frequently quoted and contributes articles to dental publications, including the California Dental Society, Progressive Dentist, Progressive Orthodontists, Dentistry Today, Dentaltown, and The New Dentist magazines, further showcasing his commitment to the dental community.
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