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He (Mac) has helped me as my practice has expanded from single-handed to a six surgery/8 dentist practice.

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They say change does us good, but are they right? What about when an associate leaves one practice and moves to another? Even if the actual change is for the better, the transition period can burn a sizeable hole in the pockets of both the principle and the associates (both the one leaving and the one joining).

Generally, there is a three month notice period leading to the change. What tends to happen in this notice period is that the associate finishes previously ongoing courses of treatment but doesn’t start longer new cases. This would continue for the notice period until he/she finally ceases to practice at that dental practice altogether.

When a new associate replaces the associate that has left, it will usually take at least three months before they will start earning income for the practice at the normal acceptable rates.

Likewise when the associate that has left the practice moves to a new practice it will probably take him/her at least three months before the income again starts to flow in at a normal acceptable rate.

From the principal’s viewpoint this results in the overhead costs being the same i.e. nurses, reception etc., but the income reducing. From the associate’s viewpoint it results in lower income for the three months leading up to the move, and also the first three months in the practice he/she moves to. Never a happy balance!

Of course, this is all assuming that there is no shortage of patients and the associates concerned are quite capable of handling any changes in administrative process, mix of patients, etc.

So that’s the problem. A period of approximately 6 months where all concerned could see their incomes drop. Other than principals forcing associates into lifetime contracts impossible to get out of alive, and associates chaining themselves to the practice doors refusing to leave, is there a way round it?

Luckily, yes!

A good way to replace this fairly commonly followed practice is for the associate to continue working as if he/she is not leaving. The advantage for him/her would be that his/her income would be maintained on a month by month basis to the time that he/she actually ceases to work at the practice that he/she is moving from.

Likewise the principal who is utilising the services of the associate will see income continuing to flow at the previous rates and thus all of the overheads will be covered i.e. no loss. Additionally, any contribution that the associate is making towards the profit of the principal will also continue.

Then, when the associate bids a sad farewell (or a sigh of relief!) to the practice, and the new associate arrives to a warm welcome, they can pick up exactly where the old associate left off.

Simple, isn’t it?

In administrative terms the manner in which one can deal with this change in procedure is:

If the practice concerned receives most monies on account as a course of treatment progresses, then in the majority of instances, the associate can simply be given a percentage of this (after relevant deductions). Thus, he/she would receive his/her share up to the point of leaving.

As all treatments are not always paid for this way, the principal and associate would need to agree how much of a particular course of treatment has been completed and what income adjustment there should be.

For all of those patients where courses of treatment are not complete, claims should be sent to the DPB on a partial treatment basis and the NHS will work out the proportion and pay accordingly. The associate can then be paid in the normal way. When these patients have their treatments finished by another dentist, an appropriate claim would be made for the latter balance part of treatments and again the DPB will work out the appropriate fees payable and the associate will get paid accordingly.

Modification in this way will help the principal, the associate that leaves the practice and the new associate who joins the practice as a replacement. (The replacing associate will enjoy a level of income that would not normally be available in such a situation).

All in all, a win-win situation!

We take great pride in our service, and would be delighted to invite you for a free 1 hour, no obligation meeting at our comfortable offices. Simply call us  on 020 8346 0391 to arrange a mutually convenient time.

This web-site was last updated on 13/06/2008

Specialist Dental Accountants for over 27 years.

Copyright © 2003-2008 Mac Kotecha & Company. All rights Reserved. The information on this site is for general guidance only. It is essential to take professional advice on specific issues about their impact on any individual or entity. No liability can be accepted for any errors or omission or for any person acting or refraining from acting on the information provided on this site.

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