YOU MAY BE DUE A SMALL BUSINESS TAX CREDIT

Beginning in 2010 and due to expire in December 2015, a practice that provides staff health insurance benefits can claim up to 35% of premiums paid for staff, not including the doctor, as a federal income tax credit.  Practices that pay at least 50% of staff members’ premiums qualify for the credit.  There is a quantifying formula which includes the number of full time employees or the equivalent thereof (FTEs) and the average annual wages paid to staff.  Using the formula, your CPA can make calculations to determine how much tax credit the practice is due.

This tax credit is available for the tax years 2010 and 2011 and will continue for 2012, 2013, 2014, and 2015.  If your 2010 and 2011 tax returns were filed without claiming this credit, the practice CPA can file amended returns to claim it.

TWO TYPES OF DENTAL MANAGEMENT COMPANIES (DMCs)

With the increased presence of DMCs across the country, corporate dentistry has become a growing presence in the profession.  Depending on state laws, these companies are organize in one of two ways:  (1) Dental Group Practices (DGPs) are those in which practice ownership is by non-dentists.  Venture capital firms are often the owners of DGPs, with equity either privately or publicly held.  (2) Dental Service Organizations (DSOs) in which the DMC owns most tangible assets (equipment, building, etc.), providing dental support services while the dentist continues to own intangible assets (goodwill).

Statistics available from the American Dental Association state that about 6% of dental practices surveyed were part of a DMC in 2010.  ADA research also shows that new-to-practice dentists in the survey pool were approximately three times more likely than older peers to join a corporate practice in order to gain immediate significant income for student loan debt retirement.

As I have mentioned previously, the McGill Advisory, an excellent newsletter published monthly by John K. McGill & Co., a member of the McGill & Hill Group, has a most informative article on Corporate Dentistry in the July 2012 issue.

SEE 410 NEW PRODUCTS---SEEK SOLUTIONS FOR YOUR PRACTICE

 Where??  In Practicon’s latest print catalog for Fall 2012---in the mail on its way to your office now.  If you don’t receive your copy by the first week in August, call 1-800-959-9505 or go online to www.practicon.com to request your copy.  Celebrating 30 years in the dental services business, Practicon’s product search team has outdone all previous efforts, combing sources nationwide and internationally to find cutting-edge products you need and want for your practice.  Distinctive, often one-of-a-kind, top quality products at value-driven costs crowd the catalog pages and flood the website.

Besides supplying you with excellent, often-unique products, Practicon has a 30 year commitment to provide old-fashioned customer service, second to none, that builds lasting relationships with our customers.  We do whatever it takes to meet customers’ need and preferences---to keep you thinking of Practicon as your favorite dental supplier

CORPORATE DENTISTRY---A GROWING REALITY

Corporate dentistry (aka Dental Management Companies) is a growing phenomenon in the profession.  Information from the ADA Health Policy Resources Center estimates that about 2500 dental offices were owned by dental management companies (DMCs) in late 2011.  Another information source, the Dental Group Practice Association (www.dgpaonline.org), a trade group of DMCs, says it now has more than 3500 members.  Allowing for the fact that some practices are being counted by both these organizations, some experts estimate DMCs now own or operate in excess of 4000 dental practices in the U.S.

Dentists in traditional practices need to be aware of this growing part of the profession.  If you are considering selling to or working for a DMC, do your homework.  Talk with colleagues who practice in a DMC setting to help gauge if this would be an acceptable arrangement in which you might choose to practice.  And if you are considering a DMC  contract, make certain that a trusted, experienced attorney reads the “fine print” to alert you to all conditions including the fact that you are relinquishing all or most of your autonomy in practice.