Whether you’re fresh out of dental school or transitioning into a new practice, understanding the basics and the finer details of associate agreements is crucial.
The Basics: Understanding the Foundation
Before signing on the dotted line, it’s essential to address the fundamental questions:
- Who are you dealing with? Are you associating with a principal dentist or a Dental Service Organization (DSO)? This distinction matters, especially if you have aspirations to buy into the practice later on.
- Where will you work? Will you be performing services at a single location or multiple sites?
- Time Off and Emergencies: How does the agreement handle your time off and emergency coverage?
- Beyond Fees: Apart from your compensation, what other benefits or services are included in the agreement?
Getting Paid: Clarifying Compensation
Discussing compensation can feel uncomfortable, but it’s vital to address payment terms upfront. Ensure you have a clear understanding of:
- Payment Structure: Are there any holdbacks? How frequently will you be paid? Clear communication around these terms will help prevent future misunderstandings.
- Independent Contractor Status: In most cases, you will be an independent contractor, which means you’re responsible for your own taxes, insurance, and continuing education costs. Make sure you’re prepared for these responsibilities.
The Nature of the Relationship: Independent or Incorporated?
If you plan to operate through a Dentistry Professional Corporation, ensure your associate agreement permits this. The Royal College of Dental Surgeons of Ontario (RCDSO) allows this setup, but your specific agreement must explicitly include it.
Restrictive Covenants and Confidentiality: Know Your Boundaries
Many associate agreements include ongoing obligations that limit certain activities, such as:
- Non-Competition Clauses: These restrict your ability to practice within a certain geographic area and time frame after leaving the practice. It’s important to negotiate these terms to avoid undue limitations on your career mobility.
- Confidentiality and Non-Solicitation: Unlike non-compete clauses, restrictions related to confidentiality and non-solicitation are generally more enforceable. These clauses protect the practice’s interests by preventing you from soliciting patients or staff away from the practice.
Termination: Preparing for the End
Every relationship has the potential to end, and associate agreements are no different. It’s crucial to understand the terms under which your contract can be terminated. This includes how you’ll be compensated for services performed prior to termination and any potential holdbacks.
If there is a holdback, remember the ASR — Amount of the holdback, Scope of what the holdback can be used for, and Release of the holdback.
Consider what responsibilities you have for patient care after the agreement ends. This ensures continuity of care and protects your professional reputation.
Entering into an associate agreement is a significant step in your dental career. By understanding the basics and navigating the complexities of these contracts, you can ensure that your professional journey is both rewarding and protected.
For tailored legal advice, consult our expert team at Blackburn Lawyers.
* Please note that the information in this article is not intended as legal advice, but rather as a general overview on the subject. If you are seeking legal advice, please consult with a lawyer.
