6 THE ADA PRACTICAL GUIDE TO ASSOCIATESHIPS Potential Problems Even though most parties enter an associateship with good intentions, sometimes the arrangement becomes unworkable. If both parties carefully evaluate their personal needs and values, the compensation method, and are honest and fair while structuring the arrangement, the associateship can be successful and rewarding for both the dentist-owner and the associate. In the case of the group practice, the practice arrangement, employment agreement, and assessment of performance of the associate should be carefully prepared and explained. Beyond initial planning, it is the responsibility of both parties to communicate effectively with each other to increase the likelihood that the associateship succeeds. Poor communication in an office of any size is an invitation for failure. To promote successful associateships and prevent problems, it is important to understand why some associateships fail. The reasons for failure may be the dentist-owner’s fault or the associate’s, or may be due to unforeseen circumstances attributable to neither party. The following list contains many of the common reasons associateships fail. This can be reviewed and discussed by a dentist-owner and associate before entering into an associateship arrangement. Common Reasons Associateships Fail No written associateship contract Incompatible practice philosophies Unclear understanding of each dentists’ mutual expectations Inability of the practice to support an additional dentist No agreement on the price or terms of the associate buying all or a portion of the practice No agreement on the extent to which the associate will treat capitation and managed care patients Associate’s hesitancy to adapt to practice policies and procedures Associate’s unrealistic income expectations Associate’s reluctance to take the dentist- owner’s advice and suggestions Associate’s lack of commitment into building the practice Associate’s involvement and support of office staff in their complaints about the dentist-owner Dentist-owner’s disinclination to pay the associate an equitable and competitive income Dentist-owner’s unwillingness to assign patients fairly to the associate Dentist-owner’s disregard of the associate’s recommendations Dentist-owner’s attitude that the associate is “young” and “inexperienced” Dentist-owner’s lack of sufficient time spent with the associate Dentist-owner’s failure to relinquish any control or authority to the associate Dentist-owner’s refusal to sell all or a portion of the practice to the associate when he initially indicated he would To promote successful associateships and prevent problems, it is important to understand why some associateships are unsuccessful. The reasons for failure may at times be the fault of either the dentist-owner or the associate, but could also be due to issues that are not attributable to anyone.
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