A dental practice can only be owned by a licensed dentist. Therefore, non-dentists are not typically permitted by law to set up or buy a dental practice solely of their own merit. A number of practices are now owned by Corporates or Individuals who have worked in the industry in some capacity such as practice managers, hygienists and dental assistants. Although a Non-Dentist May Be Prohibited from Owning a Dental Practice, There Is a Way for Financial Participation. The majority of dental practices are either owned by solo practitioners or a collective of dentists that can operate out of a single office or from a number of individual sites. All of these states, however, prohibit corporate and non-licensee interference with dentists’ independent performance and clinical judgment.
Buying an existing practice is usually the best option. It is important to understand the difference between starting a dental practice and buying an existing dental practice. From a legal perspective, the starting point is to understand what only a dentist or a dentistry professional corporation (PC) can own; and that is the professional dental goodwill of a dental practice. Iowa forbids corporate practice but may permit business corporations to employ dentists if they do not influence care.
Legal Implications and Operational Responsibilities
Does a dental practice have to be owned by a dentist? In most countries, only licensed dentists are authorized to diagnose and treat dental problems, and they are legally responsible for the quality of care provided at their dental practice. Therefore, to own a practice, a dentist must be involved in the practice’s day-to-day operations, either as the sole owner or as part of a partnership.
Legal requirements for owning a Dental Practice vary based on location. If you reside in the United States, your state board of dentistry, state laws, and your city’s chamber of commerce are great places to start researching the specifics.
Owning a Practice and Liability
As the practice owner, you may be legally responsible for the conduct of employee dentists. This does not mean that the employee dentist is not also responsible for their own conduct, but you, as the employer, will also be responsible. In situations where the treating dentist is an independent contractor, the general rule is that the practice owner is not liable for the wrongful conduct.
Regulations on non-dentist ownership vary significantly. Buying an existing practice is usually the best option rather than starting from scratch. The practice is still fully owned by a licensed dental practitioner and only dentists can perform clinical activities. These include evaluation and diagnosis, treatment decisions, procedures, health records and hiring licensed dental professionals.
DMPs and Dental Practice Management
Dental Management Provider (DMP) companies provide substantial rewards to dental offices by taking over routine administrative tasks, allowing dentists and staff to focus fully on patient care. However, regulations typically require that a dental practice itself must be fully owned by licensed dentists, with non-dentist investors only able to own a DSO and tie to the practice through a Management Service Agreement (MSA).
The journey to successful dental practice ownership requires evaluating your financial readiness, understanding complex regulations that vary significantly by location, and weighing the rewards and responsibilities that come with owning your own practice. Guidance from legal, financial and management advisors can prove invaluable in making this big decision.