PRACTICE PERSPECTIVES Seeing Both Sides of Dental
Employment Contracts Being Competitive in Today’s Market
by DAVID J. THEIN, DDS, MSD, MBA I
n preparing this column in previous issues, I’ve typically selected topics deemed relevant to our readership and enlisted subject matter experts to address pertinent questions. With recent inquiries to the journal regarding dental employment contracts, I have opted to delve into this topic myself.
As the course director for the practice management curriculum at UMKC School of Dentistry, I regularly review and advise students and recent grads on employment contracts. Having reviewed hundreds of such contracts over the past few years, I aim to offer an objective analysis of compensation packages and contractual obligations found in most dental employment contracts post- COVID.
To be clear, I’m not a legal expert and do not claim to provide legal advice or interpreta- tion. Rather, I hope to share insights gleaned from my considerable experience reviewing employment contracts over recent years in my teaching position. My goal is to furnish relevant information for both potential den- tal employees and employers alike. Drawing from my familiarity with such contracts, I’ve identified seven key categories that are often paramount to both parties when seeking em- ployment or looking to hire someone. These categories comprise the length (or term) of the contract, compensation, benefits, laboratory costs/supplies, covenant not-to- compete, mentoring/continuing education and termination.
Among the various career paths available to dentists, private practice, Dental Service Or- ganizations (DSOs) and public/community health clinics emerge as the most common. Priorities in employment contract negotia- tions differ across these entities. Generally, the private sector offers the most negotiable agreements, while DSOs tend to offer less flexibility, and community health clinics fall somewhere in between. The private sector is composed of dental practices owned by a single doctor or multiple doctors, while DSOs range from major corporate entities (e.g. Pacific Dental, Aspen, Heartland, Com- fort, etc.) to smaller private DSOs managed and often worked in by practicing dentists. Community health centers typically operate as public entities such as FQHCs, commu- nity health clinics or government-sponsored medical facilities.
In this analysis, I have consciously restrained my personal opinions on what constitutes fair compensation and employment terms. Instead, I aim to present factual data gath-
24 focus | SPRING 2024 | ISSUE 1
ered from reviewing recent contracts. This article serves to aid both dentists seeking employment and employers seeking qualified applicants. When I choose to offer an opin- ion, I will clearly label it as such.
Let’s investigate each of these seven com- ponents that are commonly found in dental employment contracts providing insights into employer offerings and employee expec- tations in today’s changing market.
CONTRACT TERM
Many employment contracts are structured as at-will arrangements, allowing either party to terminate employment at any time. However, some contracts stipulate a specific term of employment which is generally followed by renewal options. Having been a dental employer for over three decades, I can certainly see the value in not having an associate leave on short notice. While longer terms may offer stability for employers, new dentists often prefer more flexibility. Con- tract terms have traditionally been for one
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