May/June 2010
CHOICE DENTAL NEWS
CHOICE
Dental
Solutions, LLC
A division of Willow Financial Services, LLC
Associateships Unveiled
A successful associateship requires careful planning and analysis of both the employer and the new dentist (associate).
So why would a Senior Dentist want to take on an associate? Taking on an associate can help senior dentists when:
- Their patients are at maximum capacity
- They would like to reduce their patient contact hours
- They would like to become a mentor
- They would like to transition their practice ownership when they retire
So how can a senior dentist know if their practice can support bringing on an associate? Few dentists know the most important number within their practice, “Active Patient Count.” This is the number of individuals seen in the office during the past eighteen months.
Active patient count dictates:
- Practice productions potential
- Ability of the practice to support more than one dentist
- Staffing requirements most important (hygiene)
(NOTE: Many Senior dentists claim to have 2,000 active patients. These typically turn out however to be 2,000 charts, not patients. Also, they only have sufficient hygiene staff to see 800 patients in a 6-month recall, option 2nd hygienist.)
The following represents the minimal requirements to support a full time associate:
- Active patients: 1,500-1,800
- New Patients:15-25 months
- Gross receipts: $700,000+
The average new dentist has $125,000 in school debt and requires $85,000 in annual income in order to meet this debt. At a compensation rate of 33% this means $255.00 in production/collections must be available for a new associate.
At an average per patient annual expenditure of $400.00 this requires 638 +/- patients that will be required for the associate “alone” to meet their financial needs.
The next consideration relates to the new dentist “mix” and asks if the new dentist performs endo, implants, period, etc. that perhaps the senior dentist may not perform.
Three Questions that need to be answered in order to have a Successful Associateship are:
- Is the senior dentist financially able and willing to reduce patient hours?
- Can the associate receive part-time work?
- Does the practice meet the above requirements?
For more information about associateships and/or buying and selling dental practices contact Choice Dental Solutions. We provide free consultations in order to help you get the most out of your dental practice.
The Disability Corner
by Robert Oplinger
Did you know there are FIVE types of disability insurance? Most professionals are familiar with individual disability insurance policies which protect your income in the event you get sick or hurt and are unable to work. These types ofc overage will help provide for you and your family’s three basic needs: food, clothing, and shelter.
There are other expenses that you might incur that will build up in the event that you are unable to work as a result of sickness or injury. So what are the other types of disability insurance and what do they protect? The four other types of disability insurance cover:
- Your business overhead expenses
- Your interest in your practice if there are other partners involved
- Your contributions to your retirement plan
- Your business loans
Disability insurance is more expansive and encompassing than many business/practice owners may realize. Check back next month for more information on making sure your business overhead expenses are covered.
For more information on the five types of disability and how to see if you are fully covered, contact Morgan McHenry at MMcHenry@WillowFinancial.com.
Bob has been in the Disability and Life Insurance industry for more than 30 years. Before working with Choice Dental Solutions he was a Brokerage Consultant and Branch Manager for one of the largest disability carriers in the country. He managed the brokerage office and sale of disability for the state of Maryland and received many company awards for volume of sales. Bob received the Chartered Life Underwriter designation form the American College in 1982 and has been recognized many times as a disability expert. He is a graduate of Wake Forest University where he played on the football team.
H. Beck Inc. and Willow Financial Services, LLC are not affiliated
