FAQ's for Dentists
What is the difference between a PDS Contract and GDS Contract?
The contract system for NHS dentists introduced in 2006 created 2 different types of contracts. The General Dental Services (GDS) Contract allows dentists the flexibility of taking on a partner which can be useful if a dentist wishes to retire; although GDS Contract sometimes had a lower UDA value. Personal Dental Services (PDS) Contracts were taken by some dentists – either attracted by a higher UDA value or because they undertake services such as orthodontic dentistry for which GDS Contracts were not issued. The chief difference between the 2 types of contract is that PDS Contracts do not include any provision for the contract holder to take on a partner. However, all PDS Contracts, where the Provider performs mandatory services, have provision for the dentist to apply to the PCT to convert the contract over to GDS.
What is meant by due diligence?
If you are buying a dental practice, you want to ensure that you are investing your money wisely. In order to do this, your solicitor conducts a due diligence exercise which involves raising a range of enquiries relating to the business and property. Occasionally replies can uncover a number of issues with the practice, such as under-performance of UDAs, patient complaints, malpractice investigations etc. If worrying information is uncovered, it may prompt the buyer to withdraw from the transaction.
What is the average value of the goodwill of a practice?
There’s no such thing. According to a recent survey conducted by the National Association of Specialist Dentist Accountants (NASDA), average valuations for NHS practices at present are about 100% of turnover and about 90% for private practices.
Why is it important to have a written agreement when there are two or more principles at one practic
Essentially, to ensure everyone knows where they are and where they stand. A written agreement removes any ambiguity from any arrangements and allows all eventualities to be considered at the outset. A written agreement will also save potentially thousands of pounds in legal fees should any problems arise.
What are the Legal Costs involved with Incorporating a Dental Practice?
Typically this figure is around £2500 – £3000.
Can a PCT stop me from incorporating a dental practice?
No, but they can stop you transferring your contract to that corporate.
How long does it take to buy & sell a Dental Practice?
At present the process takes on average between 6 and 8 months.
Can a Primary Care Trust (PCT) stop me from buying and selling a dental practice?
It would depend entirely on the situation; contact one of our dental team who can talk this through with you.
Disclaimer
The answers to these questions contained in this FAQ document are very general in nature and should not be relied upon in relation to any specific set of circumstances. Specific advice should be sought from Cohen Cramer in relation to your specific circumstances.
Ensuring maximum compensation is one aspect of what we do. Equally important is how we go about it.
