NYSDA and the American Dental Association offer a legal analysis of participating provider agreement contracts and management services company agreements for association members. This analysis provides highlights of clauses in the contract that dentists are likely to have concerns about and highlights portions that require additional information.
As with any legal document, NYSDA advises that contracts be reviewed with an attorney in order to understand its implications on the dentist’s practice and professional license. A contract that requires the dentist to pay a percentage of the practice fees or to arrange the transfer of the account from the professional corporation to an MSO are practices which have been viewed as violations of New York State Education law by the State Education Department. If a dentist in New York State were to engage in these practices, it would presumably leave the dentist subject to possible professional discipline by the State Education Department.
Currently, in New York State, management services organizations (MSO) are limited by State education law from owning or operating dental practices and from sharing the fees generated by a dental practice. An MSO can purchase hard, material assets from a dental practice and lease those back to the dentist. However, again, the dentist cannot make reimbursement to the MSO in the form of a percentage of fees from the practice. The specific language is contained in Article 133 of the New York State Education Law and Regent's Rules Part 29.
In addition to consultation with an attorney, NYSDA considers it advisable for dentists to request that the New York State Education Department review such contracts prior to signing when questions arise about the potential for unprofessional conduct practices.
Contract analyses are objective and do not address specific areas of New York State law. The analysis can be used as a starting point for the dentist's discussion about the contract with his/her own attorney.
NYSDA members have access to its Legal Services Panel (see members only area)
To receive an analysis for an unsigned contract you are now negotiating, send a copy of the contract agreement to:
Attn: Contract Analysis Service
20 Corporate Woods Blvd., #602
Albany, NY 12211
This is a free service to NYSDA members.