Bringing a partner into your dental office is a big decision. Not only do you want to be sure that a partner is really what you want before you move forward, you need to know that you're choosing the right partner for your dental practice. Before opening your dental practice to a partner, make sure you carefully consider these key elements of partnership and how they can impact your practice.
Opening your practice with a partner, whether you're opening it for the first time or expanding your practice to include another dentist, has a number of key benefits, many of which can help shape your practice and your patients' appreciation for the better.
You'll have more than one dentist to see your patients. This can make it easier to schedule vacations and other days off without shutting down the entire office. By working slightly different hours, you can also extend the hours you're able to offer service to your patients without substantially extending your work day.
You'll be able to see more patients. Thanks to the availability of two or more dentists, you'll be able to more easily accommodate a larger number of patients--particularly important if you're trying to expand your patient base or if you've recently discovered that you have more patients than you're able to easily see.
You'll have more people to share expenses. This can both make it easier to get a business loan in the early days of your practice and make it easier to handle unexpected expenses that may require some out-of-pocket investment on your part.
You'll have your combined experience on hand. That means double the eyes to take a look at problem patients or unfamiliar issues. You can also expand your practice to include your partner's specialties.
While there are a number of clear benefits, there are also some drawbacks to bringing a partner into your dental practice. Before you decide to make partnership your solution, make sure you're carefully considering how those drawbacks can impact your practice long-term.
You'll have to make decisions together. When it's your practice, you're the one with the final say in all major decisions. As part of a partnership, you'll have to come to an agreement even when you don't see eye-to-eye. Disputes can cause serious problems for both your partnership and your practice--so it's important to be sure that you're able to reach an agreement with your potential partners as often as possible.
You might be in trouble if one partner decides to sell. A partnership is a big commitment to your practice--for both of you! When one partner is ready to move on or retire, selling can be more difficult. Your partnership agreement should include a clause for what to do when the time comes to sell or retire.
Having a former partner join a competing practice could destroy your patient base. If you have a patients who strongly prefer one partner over the other, they may follow them when the partnership ends--and it could leave you struggling to rebuild your practice.
Before you start your partnership, it's important that you do your due diligence to make sure that it's the right choice for you. There are several key pieces of information you'll want to cover before deciding that a specific partner is your best choice.
Agree on a purchase price. It does you no good to bring someone into your practice, talk to them about partnership, and then have them back away due to sticker shock just when you think they're about to join you formally. Before you start talking about partnership, make sure you agree on a purchase price and draft an agreement that you can both abide by.
Consider what you both bring to the table. When you consider a partner, what do they have to offer your practice? Do both of you have specialties or experience that will help enhance the practice?
Examine your personalities. No two people agree all the time, but you don't want to find yourselves constantly bickering, either. Make sure that your future partner is someone you can work well with every day.
Are both partners comfortable with the same type of culture? Are you looking for the same type of arrangement in your practice? If one partner already has a practice that the other is buying into, are they comfortable working in the existing environment?
What are your long-term goals? If your long-term goals don't mesh, you may struggle to develop a strong working relationship and maintain your partnership.
No matter how well you know your future business partner, you still need a carefully drafted partnership agreement that will protect you both legally in the event that things don't go according to plan. A strong partnership agreement contains a number of critical elements that will ensure your legal protection and your partner's.
Deciding in favor of a partnership can have a number of benefits for your dental practice, but it can also have a number of drawbacks. Carefully considering all sides of the issue will ensure that when you do choose a partner for your practice, you'll end up with a partner who is highly qualified and who will work well with you long-term as you pursue your career goals. If you are considering bringing on a partner or need help with a partnership agreement or dissolution, contact the dental attorneys at Dental & Medical Counsel.
Frequently Asked Questions
Q: What are the benefits of having a partner in a dental practice?
A: Benefits include having more dentists available to see patients, the ability to extend office hours, the capacity to accommodate more patients, shared expenses, and the combined experience of both partners.
Q: What are the drawbacks of entering into a dental partnership?
A: Drawbacks include the need for joint decision-making, potential difficulties if one partner wants to sell, and the risk of losing patients if a former partner joins a competing practice.
Q: What should I consider before starting a partnership in my dental practice?
A: Consider agreeing on a purchase price, evaluating what each partner brings to the table, ensuring compatible personalities, and aligning on practice culture and long-term goals.
Q: What key elements should a dental partnership agreement include?
A: A partnership agreement should include spending authority, dissolution arrangements, income split, asset definitions, and procedures for handling issues such as license revocation or a partner's death.
Q: How can I ensure a successful dental partnership?
A: Carefully evaluate potential partners, draft a strong partnership agreement, and consider both the benefits and drawbacks of the partnership to ensure compatibility and long-term success.
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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