An associateship is a commercial relationship between two dentists of equal professional standing, though not of equal business standing. An associate is an independent employee of the NHS and self-employed for income tax purposes; but he/she has the protection of employment law. Establishing a clear contract can clarify various issues should disputes occur. The following major points should be considered:
1. FINANCIAL ARRANGEMENTS
a. Fee Apportionment: This takes into account charges which are variable such as lab bills plus charges which are fixed such as practice overheads. Regular reviews (6 monthly) are advisable.
b. Payment Levels: May be apportioned up or down only on the agreement of both parties. All fee apportionment should be kept as simple as possible.
2. NEW GRADUATES
The rate of profit, i.e. the difference between fees earned and costs incurred, will rise as earnings rise, but initially the new graduate or ex-vocational trainee may have little money to live on. Proportional payment is usually appropriate, with the practice owner initially making a loss. Alternatively, there may be a "sliding scale" – not a good idea if you are newly qualified, inexperienced and slow.
It is best also to clarify such issues as "clinical freedom" and "treatment standards". In summary, and for your protection, advice should be sought from the BDA before signing any associate contract.