andon creativeWhether it makes sense to spend time and resources training a DSO depends on the goals of the dental practice. It may be beneficial to form a DSO if the dental practice is considering or intends to become the non-dental owner of the DSO. Going alone means you have more responsibility. You will work longer and may not have the same freedom as before. It can be difficult to predict your weekly or monthly income. That said, you`ll also reap the rewards of setting up the practice the way you want, creating a patient-friendly environment, and possibly, if you succeed, making more money than if you worked for someone else. Working with a partner is a great way to offset the costs and risks of starting a private dental practice. The flip side, of course, is that it can be hard to find someone who shares your vision. Work closely with your existing network to decide if there is another dentist you trust and can work closely with for the foreseeable future.
If you join an existing practice, you may be able to get into an existing book from your clients` first day. At this point, all you have to do is decide how many people you need to hire to run your practice. Finding staff for your dental office isn`t always the easiest task, so set yourself up for success by planning ahead. Since dentists usually accept insurance, the office must be equipped with billing software capable of handling this type of billing. After all, as an owner, you are responsible for educating your patients about good dental hygiene. Finally, look for a lender who understands the dental market while trying to secure seed financing. Experienced lenders understand the true cost of starting a private dental practice and are willing to help you break down the expenses and fees involved. One important thing to include in your plan is your exit strategy. It may seem unnecessary to consider an exit strategy before you open your new dental practice, but there may come a time when you want to sell your practice. An already included exit strategy prepares you for the future and makes it easy to activate it if necessary. Starting a dental practice requires working capital, often up to $500,000. You must have cash on hand or credit and collateral to qualify for a loan or line of credit.
They need money to rent or buy office space, invest in equipment and supplies, hire and pay employees, provide benefits, and recruit to attract new patients. For example, if you buy a dental practice that is known for one thing and you want to be known for something else, this must be taken into account. Or, if the firm`s name contains a specific word that doesn`t suit you well (e.g., implant, smile, family, etc.). If so, you need to think about the potential for rebranding that needs to take place so that you can get the practice where you want it to be so you can build it and then potentially sell it (if that`s your plan). Even if your private practice is still years away, the work you do today can help set the stage for your business. Finally, the transition from a single-cabinet structure to a DSO structure can limit flexibility in structuring a sale or acquisition. In particular, when creating an DSO, parties can inadvertently create tax or health problems, particularly with respect to concepts such as Subchapter S choices, recovery of depreciation, triggering taxes on embedded profits, concerns about anti-bribery municipal bylaws, and countless other issues. Day-to-day activities in a dental office include reviewing patient records, meeting with patients, and reviewing the work of hygienists after a routine dental procedure.
Most dental practices also employ billing and human resources staff who are responsible for managing the day-to-day affairs of the practice, including financial aspects such as patient billing. These businesses are usually organized into sole proprietorships, partnerships, or professional businesses wholly owned by licensed dentists. The latter distinction is important because most U.S. states do not allow unauthorized parties to own or operate a dental practice. Rules in so-called non-corporate states prevent individuals and groups from owning or operating a dental practice unless all parties have valid and current dental licenses. These laws also prohibit revenue- or profit-sharing agreements between firms and unauthorized parties. Only Arizona, Mississippi, North Dakota, New Mexico, Ohio and Utah allow ownership by unauthorized companies. We know that these are corporate states.
However, the concept of dental practice management (DPM) offers unlicensed staff the opportunity to tap into dental office revenue, even in non-corporate states. Dental offices should require clients to sign a service contract before providing services. This agreement should clarify customer expectations and minimize the risk of litigation by defining payment terms and service level expectations. Here is an example of such a service contract from Soothing Dental. Dr. Bill Lossef graduated from NYU Dental College in 1980. He worked as a partner in various types of firms before opening his own fee-for-service practice in Greenpoint, Brooklyn in 1984. He finally sold his shares in the practice in 2017 and retired completely from dentistry to the Chair in 2018. In 2011, Bill started as an employee at another dental office broker.
In 2018, Bill decided to leave the US brokerage firm Dental, where he had the opportunity to lead the sales team.