Graduating from dental school and preparing to embark on a career as a dentist is exciting! But it can also be daunting. There are many decisions to make, including whether you’re a mutual good fit for the dental practice, if there’s opportunity for professional development, and the dollars and cents of your compensation.
The first question to ask yourself is whether you want to open your own practice or join an established one as an associate. Each has its own benefits and downsides. Opening a practice means you are your own boss. You can decide every aspect of running your practice from the physical location to the type of clients. But it can also be risky. You’ll have to pay expenses such as rent, equipment fees, dental accounting software, and salaries for doctors, hygienists, and front desk staff regardless of how much money you are bringing in. You’ll also have to hire employees and handle all other logistics.
If you do elect to join an existing practice, here is what you should ask before signing a contract:
Whether you are single or have a family, you probably want a life outside of dentistry. Most dental practices will require each associate to take on emergency calls. If you value your weekend time, ensure you won’t be “on call” every Saturday and Sunday. Ask about how many hours the practice requires and if that is static or if it is likely to change without warning.
In addition to annual salary, ask about performance bonuses and if you can expect annual increases. The total compensation includes more than just money. Benefits such as vacation time, life and health insurance, malpractice insurance, and retirement contributions are very valuable.
You don’t want to walk in one day and be surprised to find that your dental chair has been turned over to someone else. Be wary of a contract that allows termination without cause.
If you leave the practice voluntarily or are terminated, a noncompete clause can disallow you from practicing dentistry within a certain geographic area for a specified time. Make sure the geographic area isn’t too broad and check the contract about whether there is a set penalty for a breach.
If you would like to eventually be a part owner of the practice you’ll want to know when that will be an option, and how the current owners will determine the price.
A shorter contract provides more flexibility, but a longer contract provides more stability. What if your life circumstances change and you want out before the end of the period? Is there a set penalty for leaving your contract early?
The practice may define you as an employee (W2) or an independent contractor (1099). If you don’t understand the difference, an experienced dental accountant can help clarify for you.
At Chaliff + Associates, we are experts in dental accounting. Dental practice contracts can be confusing, especially if you’ve never seen one before. Take your time and ask plenty of questions to ensure you join the right dental practice.
And when you’re ready to partner with the dental accounting experts at Chaliff + Associates, contact us for a free consultation!