Questions to Ask Before Adding an Associate by Greg Winteregg, DDS

 Questions to Ask Before Adding an Associate by Greg Winteregg, DDS

You might consider hiring a partner at this or a later date. Being well-informed on the subject is always a good idea, whether it's today or in 10 years. To help you decide if you need an associate for your practice, this article provided guidelines in Part 1.



Once the decision to recruit an associate has been taken, this article will continue with questions you should ask. Specifically:



Is a partner more your style or an associate? 1.

2. What are your expectations for the associate's duties, or the job description?

How does one go about compensating an associate?

How do you identify a suitable business partner?

Fifthly, how congruent are your therapeutic philosophies with the associate's?

6. What are some ways to judge if an associate "fits in" with your practice, staff, and patients?





"Do you want an associate or partner?" is the first one, so let's get into it.



Putting the words "Well - come on board and we'll see how it goes and work out the details later" into a relationship is a recipe for disaster. When agreements are not defined precisely, each side comes up with their own "idea" of what it means, and those "ideas" rarely coincide. From the outset, the associate anticipates being offered a partnership with the possibility of eventually purchasing the owner/doctor outright. The owner/doctor is on the fence about the idea. With the help of the associate, the owner/doctor is able to take more time off, which improves his health, and ultimately leads him to decide to stay on for another fifteen years instead of retiring in three to five. As a result of feeling exploited and abused, the associate decides to quit. Once again, the owner/doctor is starting from the beginning. How did that happen? Here, the doctor was ineffective in his roles as both communicator and leader.



Things may have gone differently if there had been open and honest communication from the beginning, with both parties knowing exactly where the relationship was going.. It is not necessary to propose a partnership immediately. Still, if a partnership is in the cards, it's important to set and adhere to some standards in advance that both sides can live with. Say, for instance, that you and your partner have agreed to collaborate for an evaluation period before discussing a potential partnership, etc. I witnessed a great example once when a doctor had his new associate (possible partner) sign not one, but three agreements: the associate agreement, the buy-in agreement, and the buy-out deal. He might be willing to buy in if the colleague fulfilled specific requirements and the relationship was solid. The associate may buy out the owner if he chose to sell the remaining shares, etc. In any case, you may never desire a romantic companion. It is important to clarify this as well. Make a list of everything you need before you go shopping and discuss it with your accountant and other experts.





Following that, ask: "What type of work do you expect the associate to do – i.e. what would be his or her job description?"



Is it reasonable to assume that they will attend to all of the youngsters who come in and reschedule all of your operations and root canals? Do they intend to treat patients and argue their own cases? Figure out such things before even interviewing, let alone employing. Never forget that the associate's primary role is to support you and your business. Either they're a good fit or they're not. Put yourself in the shoes of a home seller. You would not accommodate a buyer who requested an additional two bedrooms and a pool just because the broker brought them in. A other buyer would be located by the real estate agent. The same idea with a colleague. So, you'd like an associate to handle all the children's dental work, root canals, and fillings so you can have more time for yourself. You are interviewing with a candidate who is opposed to root canals and has strong feelings toward children. After that, I think you understand. Of course, there are certain things that can be negotiated; just don't try to accommodate everything. Why would you even interview someone for a full-time receptionist position if they aren't available on Mondays and Wednesdays? Someone will be able to help you out in due time.





"What should you pay an associate?" is the third inquiry.



The expectations you have for the associate will determine this. The percentage would be larger if they are responsible for finding their own patients, presenting their own cases, etc. In contrast, the percentage would be lower if you were to take care of their treatment planning and schedule filling. Come sit down and figure things out. To what extent would an associate's production at Y% affect your bottom line, and what would that amount be? You should think about the effects on your timetable as well. If you have a full calendar for a few weeks and delegate all of your operations to an associate, such as root canals, single unit crowns, etc., you may get more done in less time. With the exception of specialists, I believe that a general practitioner associate's remuneration shouldn't exceed 35% of collections. When all an associate does is see patients and isn't involved in treatment planning, I've seen doctors pay them 25%. Per diem and % can also be mixed. You should check the office's feasibility if you plan to accomplish this.



Take this case in point:



Your daily guarantee to a doctor is $450. His monthly guaranteed compensation is $7,200, and he works 16 days a month. For the associate's salary, you've decided not to go over 30%. Then, we divide $7,200 by 30, and then multiply the result by 100. So that we can calculate 30% of $7,200, we do this.



This is the outcome of the example:

1. $7,200 is the associate monthly base.

2. Seven grand Multiplying by 30, we get 240.

3. $24,000 is the result of multiplying 240 by 100.

4 Out of $24,000, $7,200 is 30%.



Therefore, if we want to supplement the base salary with a percentage, we inform the associate that they would receive 30% of any cash collected in a particular month that exceeds $24,000, and we disburse that amount at the end of the month.



What if, however, this colleague for whom you are paying $7,200 per month only manages to bring in $15,000 per month after they've ramped up their efforts? In that instance, you'd be wise to take action, as their costs exceed their benefits—in this instance, by 48%!

Nobody will be satisfied if an associate can't do $40,000 each month, in my experience. At that level of output, they won't be profitable enough to stay, and you won't be able to afford to pay them either. It can't be produced unless you have enough business and they have enough clinical confidence.





"How do you find the right associate?" is the following inquiry.



Everything is now set in stone; you know what you want and can provide. If there are no potential customers nearby, you should seek them out. Where should one begin their search? Yes, it's true: absolutely! Consider these suggestions:



1. Place an ad in the newspaper.

#2: Consult with different salespeople (such as your supplier, etc.)

3. Reach out to your friends and coworkers.

4. Place ads in dentistry newsletters and journals at the state and local levels.

5. Place ads on websites.

6. Get in touch with local doctors through your office manager to see if they know anyone.

7. Join a "headhunting" service for associates (these can be expensive).

Step 8: Get in touch with state residency programs. Another alternative is dental school, but if you're looking for someone who can jump right in and start producing results, it might not be the ideal choice due to the learning curve that might be involved.



Remember that you will meet someone who is a good fit if you keep reaching out.





"How does the associate's treatment philosophy match up with yours?" is the fifth question.



Now imagine that you have determined the requirement for an associate, the amount of salary, the job description, and the hours that individual will work. You are currently interviewing a potential associate after doing a search for one. What is the guiding principle of this seemingly pleasant individual's approach to patient care? Unexpectedly, a senior doctor's and an associate's divergent therapeutic beliefs are the root of many problems.



Without committing to a six-month or longer collaboration, how can you avoid this? Consider this method: When meeting with your potential partner for the first time, bring ten charts, any relevant x-rays or models, and temporarily put away the treatment plans. Now that you have all the necessary information, have the associate create a treatment plan. Verify that the associate's treatment plan is in accordance with the case plan you developed. You could have found a suitable match if they are similar to each other. You may also give them a variety of clinical situations to consider, and then compare and contrast their responses with your own potential actions.



A partner's clinical ability should be your first and foremost consideration.



Without collaborating with them, you might not have a chance to set this up on your own. To gain a sense of their clinical status, you can do a few things.



They might give you a treatment. (Consider their chairside demeanor and such aspects, even if it's a preventative procedure.)

2. You can request that they bring in visual representations of the instances they have worked on.



Beyond that, you should monitor their progress with your patients.



If you think you've identified the perfect applicant, you might even treat yourself and a few members of your crew. The 'new guy/girl' may not get patients' visits if the staff isn't convinced of their clinical abilities. The associate will be paid to do nothing and you will be just as busy as before since "none of the patients wants to see the associate." Having an associate can be a wonderful ego boost, but it's not worth it if it doesn't help you reduce stress or grow your practice.



A doctor once told me he would never allow his associate to operate on him. Oh, please?! They stand in for your department. You are treated by them. The results of their labor are on you. Also, no one likes dealing with the fallout when a subpar physician quits the practice—it's bad for business and your patients.

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