Orthotown December 2015 - (Page 16)

practice management // feature Smooth Running: A Guide to Practice Transitions by Thomas F. Ziegler, DDS, MS, JD transition documents in place, whenever disagreements arise, the doctors need only to consult those documents for the remedy. Smooth transitions are a result of planning, not simply adopting the attitude of, "Let us just start working together and we will figure it out as we go." Smooth transitions could occur on a handshake deal, but that is highly unlikely. Whenever I hear about orthodontists whose partnership disintegrated into a bitter, expensive split, I ask them what their partnership agreement says regarding dissolution. The answer is almost always, "We don't have one." The same is said for a buyer who thought the plan was to purchase the practice after the associate period was completed, but who was never given the opportunity-"We didn't have a purchase agreement." Practice transitions specialists exist to help orthodontists design and implement a solid transition plan that will accomplish the doctors' goals, given the financial realities of the practice. With a proper set of 16 DECEMBER 2015 // orthotown.com Types of practice transitions Associate Only. This is when an orthodontist/owner wants to hire an orthodontist/employee to provide clinical treatment. It is totally clear between the parties that nothing other than an employer/employee status will ever come of this relationship. In addition to base pay, bonuses and benefits, pay attention to requirements to quit and penalties for not giving proper notice, as well as covenants not to compete, which must be agreed upon. Associate Followed by 100 Percent Sale. The associate period is usually relatively short (six months) and then the closing occurs and money is exchanged for ownership, usually via third-party financing. In this case, the associate period exists merely to allow the buyer to move to the area, settle in and get a feel for how the practice works before taking over as the owner. 100 Percent Sale Up Front. There will not be an associate period for the buyer prior to sale. In any type of transition, when the seller is no longer an owner of the practice, there is the possibility that he/she may be hired back by the new owner to work on a per-diem basis. In this particular type of transition, that almost always occurs. The purpose of hiring the seller to continue working after the closing is to lessen the shock on the new owner, staff and patients, and allow everyone to gradually get used to the new situation. Whether the buyer is an associate before the sale, or the seller is hired after the sale, there is a period of 6 months to 12 months during which the seller and buyer are present in the practice together. During this time, it's usually a good idea for the doctors to refer to one another as "partners." The seller states that he/she has no immediate plans to retire and that some days, patients will see him/her and other Continued on p. 18 http://www.orthotown.com

Table of Contents for the Digital Edition of Orthotown December 2015

Orthotown.com Highlights
Embrace Progress: It’s Always Time for a System
Industry News
Finishing Tips, Tricks and Voodoo
Preserving Anterior Anchorage in Cases of Congenital Missing Laterals
Smooth Running: A Guide to Practice Transitions
Office Visit: Upstate New York Orthodontist Hits a Home Run with Winning Smiles
10 Things Every Orthodontist Needs to Know About HR Management
The Benefi ts of Early Treatment
Accelerated Orthodontic Tooth Movement with Clear-Aligner Therapy
Path to Purchase Research: A Survey Analysis
Poll
The Case for Soft-Tissue Orthodontics
Ad Index

Orthotown December 2015