{"id":10419,"date":"2021-09-07T08:00:49","date_gmt":"2021-09-07T13:00:49","guid":{"rendered":"https:\/\/www.cainwatters.com\/digitalblogs\/?p=10419"},"modified":"2021-09-02T16:21:27","modified_gmt":"2021-09-02T21:21:27","slug":"right-time-add-associate-dentist","status":"publish","type":"post","link":"https:\/\/www.cainwatters.com\/digitalblogs\/right-time-add-associate-dentist\/","title":{"rendered":"Is Now the Right Time to Add an Associate Dentist?"},"content":{"rendered":"\t\t
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Consider These Factors Before Answering 'Yes'<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Adding a doctor to a dental practice is one of the biggest decisions owners can make, and for good reason. A new associate will have a huge impact on the practice\u2019s culture, operations and, of course, the bottom line. It has the potential to spur growth, invigorate staff and pay big dividends for years to come. On the other hand, bringing in an associate before the owner or the practice is ready often leads to trouble.<\/p>

So, how do dental practice owners determine if and when their practice is ready to add another doctor?<\/p>

CPA and Financial Advisor Mason Stern<\/span><\/a> says there\u2019s not one hard, fast metric that owners can lean on. In fact, Mason counsels his clients that the first step in the evaluation process is not a financial one at all.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\u201cThe very first question I ask my clients is ‘What is your why?’\u201d says Mason. \u201cWhat problem(s) are we trying to solve by bringing in a new doctor?\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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The reasons for bringing in an associate are varied and not specific to a specialty or practice. Some owners are looking for more flexibility. Some have capacity constraints. It could be purely financial. Or an owner might be looking to transition ownership of the practice in the near future.<\/p>

Whatever the motive, Mason says ensuring that adding an associate truly fits the needs of your practice and staff is the key.<\/p>

\u201cUnderstanding \u2018the why\u2019 is vital to mapping the direction going forward,\u201c says Mason. \u201cUntil we are comfortable with that, I rarely start looking into the financial impact of adding an associate.\u201d<\/p>

Once it\u2019s established that adding an associate dentist is the right move personally for the practice owner, it\u2019s time to determine if it\u2019s the right move financially for the practice. Mason looks at two models when determining the financial viability of adding an associate: break-even and profitability.<\/p>

Determining the Break-Even <\/strong><\/h5>

Knowing the practice\u2019s breakeven helps owners understand the viability of bringing on another doctor without having a negative financial impact on the practice. The breakeven number is determined by comparing the increased costs that an associate will bring with what they need to produce to be able to cover that cost.<\/p>

\u201cThe modeling tool we use at CWA gives owners a complete breakeven picture, down to monthly or even daily production goals for the associate,\u201d says Mason. \u201cThe breakeven amount is typically considerably lower than owners expect because many of the expenses are already fixed.\u201d<\/p>

Salary will always be the biggest cost when factoring breakeven. However, Mason stresses that there are many other costs to consider when determining your number:<\/p>