When can buying dentists fire staff?

We ask two experts the same question on a complex issue.

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Question: I’m going to buy a practice, but I want to replace the chairside assistant. Should I do that immediately or wait for a period of time?

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TIMOTHY G. GIROUX, DDS

There are two aspects to consider when answering this question: 1) Is my goal of retaining the most patients possible in this transition best served by keeping the chairside assistant? and 2) How will this decision affect my exposure to litigation?

Let’s address number one. I will assume that this question concerns an office that has one main chairside assistant as compared to a large office with more than one doctor or several chairside assistants. I believe that normally the front office employee is the most important staff member in a transition, followed by a long-time hygienist of the practice. I do not believe that retaining a chairside assistant affects the retention of the patients in the practice to even a small degree. Even in a situation where the front office employee and/or hygienist was lost during the transition in a small practice, I do not believe keeping the chairside assistant will make a difference unless the person is involved in the day-to-day communication with patients.

Second, how will this decision affect your exposure to litigation? This is the human resource element of terminating a staff member. Transitions are asset sales 99.9% of the time, compared to stock sales. In an asset sale, the previous business, and therefore all the jobs in that practice, no longer exist. You should definitely consult with your attorney about specific state and federal statutes on employment law in these matters to make sure that you have proper documentation, and that former employees have a clear understanding of the situation. While it should be evident that the business and the job no longer exist, I know of a situation in California that is still being litigated. It involves an employee who was on maternity leave at the time the practice was sold and she was not hired by the new owner. While I believe that the court will eventually find in the new owner’s favor, all aspects of any staff termination should be discussed with your attorney to avoid any unnecessary litigation.