Sharing a space with another dentist can be a viable and attractive option, depending on where you are in your own dental career. While space sharing in dental practices is common, there are still complex legal considerations to think about before entering into such a situation. When space sharing is on the table, all parties need to be on the same page.
If you need assistance establishing a space share agreement or if you are entering into one, the Los Angeles space sharing agreement attorneys at Leiva Law Firm can assist you. It is imperative that you create an agreement that protects your rights and interests, just as it is critical that you understand the terms of an agreement that may already exist. Not only is it important to know what your obligations and responsibilities are in an agreement, but it is also equally important to be aware of what you can do if things are not working out and you want to end your space-sharing relationship.
What to Know About Space Sharing for Dentists
There are several reasons why a California dental practice owner would be interested in attracting another dentist to come and join a space-sharing agreement. Perhaps an older dentist is getting ready to retire and as a result, wants to scale back on working hours. Bringing in another dentist can be a way to have a practice’s patients covered when the owner’s dentist is away, while also a time to train a new dentist to take over a practice when retirement day comes. Or, a dental practice may have unused space where a dental sharing agreement could be a source of additional income.
There are also many reasons why a dentist looking to find a practice that is open to space sharing would be interested. Maybe a dentist is only looking to work part-time, a couple of days a week. Or, a dentist could be a specialist who wants to gain exposure by working outside of an associateship with some other general dentists.
Regardless of the motivation to enter into a space-sharing agreement, both parties should approach the arrangement as they would if they were going to form a partnership. Even though space sharing is not a legal partnership, two dentists working in the same office could be considered part of the same business. As a result, there could be intermingling with each practitioner’s business. For example, if one dentist takes disciplinary action against them, another dentist coming in could be associated with that, which could hurt their reputation and business. This is why one thing to look into before signing an agreement is the background of the dentist with whom you would share a space. Do they have insurance audits going on, is their license in good standing, or do they have disciplinary actions against them?
Becoming familiar with the leasing terms of a building that a dentist doesn’t own is important because, in many cases, subleasing can only be done with the property owner’s consent.
Assessing the overhead that the practice pays for and what will be shared to divvy up monthly expenses is essential. For instance, dentists in a space-sharing agreement should determine how to pay for the use of shared equipment or the use of the same staff.
Regulatory compliance must also be discussed. For example, how will HIPPA privacy controls and practices be implemented?
Speak to an Attorney at Leiva Law Firm Today
The above legal considerations for shared dental office space only illustrate a small portion of what dentists need to think about and be aware of before entering into a shared space agreement. For more information about space-sharing agreements, please call Leiva Law Firm at (818) 519-4465 today to schedule a free consultation.
