Pros and cons

Many dentists are realising the benefits of entering into an expense sharing agreement. This is a type of partnership where expenses such as staff, dental equipment and rent are shared, but those involved do not share the fees that they personally earn at the practice. Entering into a partnership of this type has plenty of benefits. An expense sharing arrangement will provide many of the advantages that a conventional practice partnership offers, without some of the traditional disadvantages. For instance, dentists will be able to interact with other dentists in a professional environment. This means they have the opportunity to discuss any professional ideas or concerns they may have. However, despite being around other dentists they will still be able to determine how hard they wish to work and how much they wish to earn.

There are risks associated with this type of arrangement. Firstly, it should be clearly understood that notwithstanding the name, from a legal perspective, this is a partnership and is governed by the same laws and regulations as a traditional partnership. One consequence of this is that, as between the practice and the outside world, the partners are jointly and severally liable for all practice liabilities. In other words they are each responsible for the entire amount, not just a percentage, even if they may be entitled, if asked to pay, to claim back a percentage from the other partner or partners.