Unlike other legal entities that allow a dentist to structure his practice, partnerships are not subject to as many formalities. Given the facts and circumstances, a partnership can only be entered into by one or more dental dentists who practice together, even if, technically, the dentists did not want to enter into a partnership. No written agreement or deposit is required. Partnership agreements may be relevant if there is more than one client in the dental practice. This may not always be the case in the case of a smaller practice, but may be the case for a broader, private practice. As you plan to enter into a partnership, it is advisable to carry out your due diligence and thoroughly check all the documents relating to the practice in which you are going to source. No document is taboo, including documents indicating the financial health of a practice. If the expenses of a practice have not been well managed, it could indicate that a potential partner, with the way the funds are spent, is not practical and could represent a financial risk for you. It is necessary for a new partner to be aware of all aspects of his dental practice, to become familiar with suppliers, to ensure that the equipment is in good condition to avoid any commitment and that he is able to recruit, train or lay off staff in the best interest of the company.
Remember – since the agreement effectively means that separate companies operate from the same practice, all dentists are personally reliable for their own business risks and tax payments. In today`s dental market, many dentists opt for a partnership with one or more other dentists instead of following the traditional solo practice. The increase in dental partnerships can be attributed to a number of factors, including rising costs of new technologies, low or lower reimbursement rates, and increased competition with new graduates and medium-sized dentists, whose scope is expanded. When dental partners enter business at the beginning, they are motivated and happy to engage together in an exciting new venture. Until they sell the practice, one can expect nothing to go wrong and often starts without a written partnership agreement with the exploitation of the practice. As with any formal legal agreement, there are potential risks that can arise, including possible differences of opinion and relationship breakdowns. For this reason, it is always advisable to resort to the help of a professional agency to establish a solid contract. If you work with an experienced dentist, you may also have difficult conversations with your future partner, which can be difficult or unpleasant for you.
This part of the dental partnership agreement covers the people who handle patients` dental medical records and should explain each partner`s obligations with respect to HIPPAA compliance and state and state rules. We prefer to set up the dental partnership agreement before a single penny is on the line. The development of a partnership agreement necessarily requires some unpleasant discussions….