The overhead of a dental practice can be high and cost-cutting measures to stay profitable are always on the table. This is one reason why space sharing may be particularly attractive for dentists. Maximizing the use of a dental facility, reducing operating costs, and taking on less risk for new practice owners are all good reasons to work with another dental provider and share a space. However, despite the many advantages of space sharing, there can also be challenges. This is why having a robust space-sharing agreement in place is essential.
If you are a California dentist interested in space sharing then protecting your interests and your practice is critical. You can work with an attorney who can help you accomplish your goals and safeguard you in the process. The California space-sharing agreement attorneys at Leiva Law Firm are prepared to help you secure the best possible agreement.
What Encompasses a Dental Space-Sharing Agreement
There are key elements to a space-sharing agreement that must be addressed to help a business relationship and practice run smoothly and efficiently and to instill necessary protections for a dental professional. The following should be touched on in any dental space-sharing agreement.
Working Schedule
Potentially the practice may be large enough to allow both dentists to work a full-time schedule. However, if it is not, then determining which dentist will work on which days is important. Alternatively, the hours that the dental professionals work could be split with one working in the morning and the other in the afternoon or during weekend hours.
The Cost of Rented Space
Rented space arrangements can be flexible but ultimately have to make sense and be profitable. Whether it is a pay-per-day agreement or another way to cover rental costs, a fee and payment structure have to be outlined.
Equipment Use
In a shared space there may be room for each provider to have their own dental equipment but more likely there will be some amount of overlap. Especially in everyday items like gloves and other materials that are commonly used. Determining how much shared use of equipment and materials will take place and how to pay for them should be in a shared space agreement. Additionally, things like a separate phone number and marketing efforts for each dentist to preserve their unique identity and business, which are usually not shared, should also be covered.
Office Staff
Like equipment or materials, a dental practice needs staff to function. A space-sharing agreement should outline if administration staff and office personnel will work for both dentists or if each dentist will have their own people. How staff will be compensated in a shared arrangement must be detailed in an agreement. Similarly, using separate or shared insurance can also be included.
Conflict Resolution
No one wants to think about disputes happening, but they inevitably do from time to time. Outlining how to resolve conflicts is beneficial for each party’s business and the relationship with each other.
Termination of an Agreement
Sometimes a space-sharing situation does not work out. Safeguards should be in place for the proper procedures and policies regarding terminating the agreement.
Speak to an Attorney at Leiva Law Firm Today
Don’t wait. Call Leiva Law Firm at (818) 519-4465 to schedule a free consultation with a Los Angeles space-sharing agreement lawyer today.
