A lot rests on the person responsible for owning and running a dental practice. The costs alone can be a major stressor. Think about the cost of your space, equipment, and everything else needed to properly serve your patient. Some dentists choose to reduce these costs by entering into a cost-share arrangement.
Dentist Cost-Share Arrangements
There are a couple of arrangements where dentists share space. There may be more than one dentist partner in a practice. There may be a partner who employs dental associates in a practice. Other times, two or more dentists may operate separate practices but still share a space and some of the overhead costs. This last arrangement is a cost-share arrangement.
There are a number of benefits to a dentist’s cost-share arrangement. Reducing costs is, of course, such a primary benefit. In an ideal cost-share scenario, a dentist is able to remain in control of their own practice and its growth while, at the same time, reducing costs associated with the running and management of the practice. In addition to these potential benefits, there is the added benefit of maximizing space arrangements. When sharing a practice space, you put to use space that would otherwise be empty or wasted.
Another benefit of cost-share arrangements is being able to share a space with a dentist who may have different specialties than your own. This allows for a natural referral relationship where you refer patients to the other dentist in the cost-share arrangement and they, in turn, refer patients to you when they are in need of your specialties. In a solid cost-share arrangement, you will be able to reap these benefits while still retaining your practice autonomy where you get to call the shots and be in control of how the practice is run and more.
Before you enter into a cost-share arrangement, you should be aware that, while there can be benefits that can reduce the stress of operating a dental practice, there may be other issues that, when left unaddressed, can end up causing you even more stress. This is especially true when you consider some potential issues that simply arise from sharing space with another business. While you and the other practice in the cost-sharing arrangement may retain autonomy over your own practices, there are likely going to be some overlapping issues that you both should address.
For instance, consider staff members such as those working the reception desk. Will these be shared employees? Will you each have your own receptionist and phone line? If shared, who will be tasked with hiring, training, and onboarding these new employees? Also, speaking of shared receptionist stations, you should also be upfront in a written agreement about what the process is for new patients who contact the shared location of your dental practices. Which dentist will get what new patients? These are things that can be easily overlooked but lead to unnecessary conflict and resentment when the issue inevitably arises. To tackle those problems before they even become a problem, address them in a written agreement and be clear about proper protocol.
Dental Law Attorneys
Before you officially enter into a cost-share arrangement, be sure to consult with the knowledgeable team at Mahan Dental Law to see if it will best serve your practice and its goals. Contact us today.