StudentDC Interactive

“With the economic situation right now, is this a bad time to start or buy a chiropractic practice?” If you are graduating from chiropractic school right now, you’re probably wondering if you are graduating at the wrong time. Sure, gas prices are high and going higher, and people in some areas of the country are having trouble paying for their homes. But health care is a pretty “recession-proof” business. People will always need health care, and if people understand the value of chiropractic care, they will keep coming back. Sure, you may lose a few people who have to drive a long distance to get to your office, but you may pick up others who don’t.

This might be a good time to consider buying an existing practice rather than starting a new practice. Why? You will have a built-in patient base and employees who know how to run the practice. You may also have an easier time getting a loan for an existing practice, since it has a track record that a bank can rely on.

The answer to that question is:  You can’t!  I know you are very eager/anxious to get going.  You have lots of student loan debt to repay, and you’ve found a great location, and you are chomping at the bit.  But you can’t commit to anything until you have your license IN YOUR HANDS! 

I talked to a couple the other day who wanted to commit to a lease.  They are graduating in October.  Give a month or so to process their license (assuming they have already passed all their boards) and they will be lucky if they can get their licenses by December 1.  I suggested they put a contingency in their lease that said they didn’t have to make a final commitment until they have their licenses.  This probably means the property owner won’t start build-out until then. 

It is far better to be patient for a few months while waiting for your license than to take a chance and have to start paying rent and paying back bank loans without a license to practice and no way to generate income to pay these bills. 

Be patient.  I promise it will all happen in due time.

I was talking with a grad today who was considering an associate contract. He said, “If the doctor won’t bend on this issue (it happened to be on a non-compete), that’s a deal breaker for me.”
I’m always pleased when I hear grads talk about “deal breakers” because it shows that they have thought through the process (whether it’s an associate contract or a practice purchase or something else) and that they know what is acceptable and what isn’t…for them.

Too many young DC’s are afraid to set limits and they are too timid to say, “This is unacceptable to me.” You get what you put up with, so if you don’t set limits on your agreements, you will get walked on, taken advantage of, treated badly.

Decide what your “deal breakers” are and stick to them. Let me know what you think a “deal breaker” is for you.

If you are in the process of looking for an associate position or considering an associate or independent contractor contract, you probably have lots of questions.  Here are some recent blogs and links that might be helpful:

Finding an associate position (from StudentDC.com)

The best way to be paid as an associate

Length of an associate contract

Average associate pay

Leaving an associate position

Signing a non-compete (from StudentDC.com)

If you have questions, feel free to email me (jean@dcpracticesuccess.com) .  Or you can post a question in reply to this blog post and everyone can see my reply.

Let’s say you’re looking at an associate (employment) contract, and it states that your commission percentage is based on collections “attributable” to you. What does that mean?
To me, it means that every patient you see, the ones you chart and adjust and shake hands with at the end of the visit, belong to you. If not, what are you getting paid for?

Here’s an example: You bring in three new patients one day. The fees for those patients are $150 each, so you get $450 for the new patients. The other doctor had to leave early to pick up a sick child, and you were asked to see one of his new patients. If you don’t get the fee for seeing his new patient, you just lost your percentage of $150, and in addition, you lost the time because you couldn’t see one of your own patients during that time.

Now, what about the other doctor seeing your patients? Who gets credit for them? If you get credit, then you and the other doctor are granting “professional courtesy” to each other. If he gets credit for seeing your patient, then the same should work for you.

I hope this makes sense. Either you get credit for every patient you see or you and the other doctor agree that you are granting each other a certain number of instances of professional courtesy. It has to be the same for both of you.

If the contract doesn’t make sense, don’t sign it until the doctor clarifies IN WRITING. Remember, what the doctor says has no legal weight. Only what is in writing matters.

Disclaimer: I’m not an attorney or a CPA. I’m providing general information, not legal or financial advice. Consult with your attorney or CPA on all contracts.