Emotional Preparation for Retirement from Dentistry

This is another guest post from our dear friend and client, Dr. Don Lurie.

It seems to me that many of the doctors that I talk to as they prepare for retirement, are terrified.  Their anxiety is obvious after just a few minutes of conversation.  I am asked (being recently retired for 2 years): what do you do with yourself, are you happy, does your wife like having you around, and many similar questions.  I have talked before in my articles about the obvious financial preparation for retirement and associated subjects in my blog titled "The Profession of Retirement."   I think that attention needs to be placed on the emotional aspect of retirement.  This was difficult for me and, while I thought I was prepared and "longed" for retirement, it took the better part of 2 years to be emotionally comfortable with this new life. 

Now I would like to share with you some of my fears, visions, and thoughts that have occurred and I am, excited to say, how wonderful this new life - this new career - has become.  In the early stages, the financial aspect was certainly a fear.  After all, I never had to live on a budget where there was a "fixed income."  Thanks to my "Team of Retirement." which I outlined in another earlier article, this was easily overcome and after about 6 months, it was obvious that our preparation was accurate and that life could be sustained.  I don't want to minimize this but I would like to concentrate on the emotional aspects of retirement for this article.  For some folks, no amount of money is enough.  But just as important, is the fear of being unprepared for retirement.  After all, there is no clock that says you must be at the office at 8:30 and leave at 5.  Or that you must be at this meeting or seminar at the given time and so on.  It is a challenge to be able to make your schedule properly; but that is exactly what must be done.  I knew that I wanted to be in a situation that allowed me to be a mentor and a helper.  I wanted to give of myself and this was a major factor in planning my time and for concentration on this new career.  I would urge everyone to look at retirement as the beginning of a new and wonderful career.  You have the tools and the experience.  You have been the CEO of your practice, and with help, the CFO also.  You have learned to communicate, delegate, and to take part in community service.  You have learned to keep informed and to take continuing education, and more importantly, you have learned to bring healing, happiness, and joy to others.  So, soul searching need to be done as to where this new career is headed and what ends do you desire.  There is no limit. 

I prepared for retirement with my team, with my wife, with my pastor, and with my heart.  I knew that I wanted to be an instrument to give back to people and community.  Thus, I was able to list the areas that I could do a little good with the tools that I possessed.  I was then able to see that the areas I was interested in were both professional, secular, and religious.  And then, the list got larger and the openings became clearer.  This introspection takes time and effort.  The schedule is now so filled, that I wonder how I had time to practice Oral Surgery. 

I give council to students, I work at a new profession (photography) which was a hobby of long term, and I still teach at local area study clubs.  I try to write articles that come from the "school of hard knocks" and to share the experience that comes with 50 years of practice.  But this was not enough.  I am proud to be part of a large out-reach program that takes a great deal of time plus volunteering.  And now a new idea has come to me!

Since I wrote an article on "The Specialist and theStudy Club", it occurs to me to start a Study Club for Retiring Dentists.  This would be a group who can share their story with those who are near, not so near, or just beginning to think about the "new career after dentistry."  As I have said before, Planning for Retirement should start when you first begin practice.  Now you see why my group of articles start out with mistakes made! My thoughts on this club would be simply a chance to exchange ideas, to help rid ourselves of the fears, to hear a colleagues' story, or just knowing that you are not alone.  As the time goes on and the group continues, many other avenues can be addressed.  Psychologists, out-reach experts. hobby enthusiasts, financial planners, wives and spouses and their interaction and so on.  I think it can work and it is something that we will start in our area.  There is no age limit and should encourage the 30 year-old on up to the senior group.  Each age has a different prospective and could be a big help to both senior and junior including the transition of a practice. 

These are just some thoughts that have been on my mind and I think you understand where I am coming from.  We are all here to help one another.  Please do not hesitate to send me your thoughts and questions.  It would be an honor to help.

More Mistakes Made and Lessons Learned next time.

If you are interested in participating in a study club for dentists thinking about transitioning out of dentistry, contact Dr. Lurie or Ellen Dorner.

Dr. Donald B. Lurie, DDS

email:  donald.lurie@att.net

Phone:     717-235-0764

Cell:         410-218-2228

Dental Case Study: Selling the Real Estate with the Charts

Here is a guest blog from Ellen Dorner, Managing Director of Dental Practice Sales

Dr. A is a 62 year-old GP that is in the process of transitioning out of his practice.  Dr. A owns his own building in a small office park with good parking, good visibility and in a very stable area.

When Dr. A decided he was ready to transition out of practice, he also decided that he would sell the building at the same time.  With all the good things about his building location, the sale has not gone as easily as he thought it would.  He has had several interested buyers for his practice, all of which are young dentists just starting out.  And while they would love to eventually own their own building, the decision to do so now has been a difficult one.  With @ $200,000 in school loans still outstanding, the additional cost of a building purchase along with the practice has become too daunting.

This seems to be the situation with many dentists who own their real estate.  The buildings were purchased with the notion that real estate always goes up and is a great investment.  And while commercial real estate has taken a hit over the last few years, the decision to own was not necessarily a bad one at the time.  The glitch is that in transitioning a practice with the real estate to a young dentist just starting out is proving to be too much for them to handle at this point in their career.

A better idea may be to lease the building with an option to buy the real estate at a later date.  The critical piece to this situation is to be sure that all terms are in the lease – who will value the real estate, the terms of the eventual purchase and the timing of the purchase.

As in any part of the transition, it is critical to have trusted advisors to walk you through this process.  You are the dental expert, don’t hesitate to rely on other experts for this important transition in your life.

To discuss your situation, email Ellen or call her at (800) 772-1065.

Dental Practice Purchase Checklist

We've been getting inquires asking if there is a checklist a dentist can refer to when buying a dental practice.

And when asked, we deliver.

Dental Practice Purchase Checklist

Dental Associate Agreements

Here is a guest blog post from our friend Carl Guthrie from ETS Dental.

Associate Agreements (contracts) can suffocate us at a time we should be reveling in a new opportunity.  However, many dentists don’t understand what is in their contracts, in turn complicating the process and turning this joy of new opportunity into a whirlwind of anxiety and trepidation.

This article is not intended to be legal advice.  

ALWAYS consult an attorney or legal expert in your jurisdiction.

Here are a few points to pay attention to when reviewing your Associate Agreement:

1. Employee or Independent Contractor:  Regardless of the debate on what is technically legal or acceptable by the IRS, make sure you know which status you are agreeing to.  If taxes on income are not paid correctly, it could come back to bite both the associate and the practice.   Consult a CPA or Attorney on what is correct for your situation.

2. Compensation: Are you going to be paid on collections or on production?  These two do vary, but don’t get stuck in the mindset that production-based income is the only way you will accept to be paid.  Keep in mind that even if you are paid on production, many practices will adjust your future paycheck if there are any unpaid patient balances or write-offs.  In essence, you are being paid on collections anyway.

3. Notice Period: The length of termination periods are widely becoming 30 or more days long.  We’re seeing more and more asking for 60 to 90 days notice.  Understand what is required of you to terminate your employment with a practice.  

4. Restrictive Covenants and Non-Compete Clauses: Dental practices will protect their interest by requiring you to agree to some sort of restrictions upon the termination of your employment.  They will restrict you from practicing dentistry in any capacity within a certain distance for a specified length of time.  There will be other language that restricts you from soliciting patients or staff for a specified time period.   Distance varies upon geography.  For example, rural areas can have 20 miles or more of a restricted zone, while a metro area will be 2 to 5 miles.

5. Lab Expenses:  Most practices are paying these costs; however, make sure to ask if you will be paying for any lab expenses.  There is no real standard on this in the industry.  Practices will have associates pay for half or an amount equal to the Associate’s percentage of pay.  Also, make sure you understand the formula for calculating your pay with lab expenses.  You want the lab expense to be deducted from the total production prior to calculating your percent of pay.  {Pay = % of production * (Production – Lab expense)}

These are just a few of the “biggies” that develop in contract negotiations.  Again, refer to your attorney for precise legal advice.

Posted by Carl Guthrie, Senior Dentist Recruitment Consultant with ETS Dental. To find out more, call Carl at (540) 491-9104 or email at cguthrie@etsdental.com.

The Specialist and Dental Study Clubs

This is another guest post from our client Dr. Lurie.

It seems to me that the need and demand for continuing education is extremely important to our profession.  Obviously, so do the State Boards and licensing folks.  I would like to discuss study clubs and how to gain the most value for the time and effort it takes to begin a study club.  How to begin and maintain the viability of the entity is important but many other factors need to be considered.  I was fortunate enough to start a study club that was in place for about 18 years and was most successful and helpful to me personally as a specialist in Oral and Maxillofacial Surgery.  It was a venture that was close to my heart as are many endeavors that one creates from scratch.  This is a companion article which started from my recent post on the Specialist and Referrals. 

Continuing education has many virtues but comes at a price.  The large and major professional organizations have tons of meetings around the country and internationally.  The advantages are obvious but some disadvantages are also obvious.  One must leave the office for an extended period of time.  Some meetings are better than others and have greater draw; thus the partners in a group practice may bicker as to who gets to go and who stays and watches the store.  In addition to the time involved, there is a large expense for the meeting - food, hotel, transportation, tuition and time lost in production at the office.  There is no doubt that these large meetings with their fantastic instructors have a lot to offer.  In addition, the large attending group gives ample opportunity for exchange of ideas and experience.  Lunch time becomes an additional course of study as folks discuss what they just heard and how it is or is not applicable to them in their own particular situation.  Even so, I feel there is a great opportunity for the "Study Club" to also be part of this ongoing quest for information, knowledge, practice growth and expansion of referral base.  For the beginning specialist, it is a great supplement to the contacts and personal exchanges with the referral base.

I would suggest starting a study club that is narrow in its field.  This allows for expansion of topics as the club develops but keeps the group focused on a particular subject that can be creatively and exhaustively researched and expanded upon.  In my case, we created a club that was restricted to dental implants.  You must remember that this club was started at about the time that the first words of implantology were first spoken.  I was one of the fortunate ones chosen to take post- graduate training in this new field.  Now it is taught in dental school.  This peaked my interest and desire to share this with colleagues and referring doctors.  We had to learn a new field as best we could and take the courses that were out there - both good and bad.  The study club enabled our group to discern the good from the bad - what worked, was feasible, patient friendly and within our ability to achieve good results.  This process was ongoing throughout my career until retirement.  As the ability improved and the knowledge was enhanced, the complex cases became more routine and the results were more predictable.  Thus, the study club became an arena that open discussions, exchange of ideas, and special speakers embellished the information obtained from the formal courses given around the country.  So I would suggest that a beginning study club be a special interest within a specialty connotation.   

Invite prospective members who are within a 5 year (approximately) time of graduation with you so that you can grow together both educationally and socially.  I must comment on the wonderful relationships that the closeness of the club created.

I would also try to establish a membership that had other specialists in fields besides my own area.  After all, I am trying to create a referral base.  Input from ortho, perio, prosthetics, occlusion, TMJ, etc.  will add to the discussion and I found this to be true.  Everyone benefitted when we discussed implants from an occlusal standpoint for example.  I might invite another oral surgeon to present at a meeting but I certainly did not need one as a competing member. 

There are many ways to conduct a study club meeting.  You can have a classic lecture followed by question and answer.  It can be an actual hands-on class sponsored by one of the companies (with all their resources), a round-table discussion where everyone will present on the subject (as notified in advance) for 15 minutes per person, or even a field trip.  The possibilities are only limited by your imagination.  I would suggest allowing several minutes at every meeting for "good and welfare" so that logistics can be worked out and a consensus agreed upon. 

We actually had an evening where a patient was brought in (all consents signed), records, x-rays, treatment plans etc. presented, and the ability to examine the patient, ask questions---including fees and so on.  It was a fun night. So much so, that it was repeated once a year with a different doctor getting a patient for us to examine.  It was also invaluable when one of the patients was a problem from a treatment-plan standpoint and this gave the entire group the opportunity to help the doctor with the optimum treatment for his patient.  His patient was impressed with the help he was getting on his behalf and I think it was a mutual stimulating evening for everyone.

Always send out an agenda prior to the meeting.  Try to keep the meetings to an agreed upon time format (we used 2 hours).  Try to meet at the same, convenient location when possible with the exception being patient exams, field trips etc. 

Keep the format inexpensive and simple.  We started promptly at 7 PM.  This gave everyone time to get home, grab a bite, kiss the kids and get to the meeting.  We only met 6 times/year.  There were light refreshments in the back of the room at a convenient hotel in the area which included fruit, cheese, coffee, soda and cookies.  Thus, folks could go back and forth while presentations were occurring and not interfere with the presentation.  Our dues structure covered most of the cost of these arrangements.  I footed the bill for mailings and any other special needs. This was done to keep expenses in check.  We started with 12 members and ended with a mailing of 80 active folks.  As new members joined, we tried to get them to get their age-group peers to join with them and this was successful.

So, I think I have given you an idea on how to begin and your own imagination can do the rest.  It was a fun ride and I truly enjoyed every minute of it.  Needless to say, the learning process received was invaluable.  A great way to have "continuing education." with friends, and fellowship.

These are just a few ideas about "starting a study club" and I hope they are of help.  Please do not hesitate to send me your thoughts and questions.  It would be an honor to be of help. 

More Mistakes Made and Lessons Learned next time.

Dr. Donald B. Lurie, DDS

email:  donald.lurie@att.net

Phone:     717-235-0764

Cell:         410-218-2228