Advertising, fee splitting, referrals, and business practice restrictions
Domain 8 - Advertising, fee splitting, referrals, and business practice restrictions
This domain tests the business side of practice: how a dentist may market, how fees may be shared, and who may own or control a practice.
Advertising
- Advertising must be truthful and not misleading. Guarantees, unsubstantiated superlatives, and claims that imply superior results are prohibited.
- A dentist may not advertise as a specialist unless the dentist holds the recognized specialty credential; 'cosmetic dentist' is not a recognized specialty.
- Discounts and coupons are permitted if the terms are clear and the advertisement is not deceptive.
Fee splitting and referrals
- A dentist may not split professional fees with an unlicensed person or entity, and may not pay or receive payment for patient referrals.
- Employees may be paid a salary; that is not fee splitting. Paying a non-dentist marketer a percentage of revenue per patient is.
- Arrangements with management service organizations must leave clinical judgment and professional fees under the dentist's control.
Business structure
- Connecticut follows the corporate practice doctrine: a business corporation cannot practice dentistry. Dentists may form professional corporations or similar entities.
- Ownership must comply with professional entity rules; a non-dentist investor cannot control clinical decisions.
Worked example
A marketing company proposes a fee of $150 for each new patient it delivers, plus a percentage of first-year production from those patients. The per-patient fee is a payment for referrals, and the production percentage is fee splitting; both are prohibited. A flat monthly retainer for advertising services, with no link to patient volume, is generally acceptable.
Traps that cost marks
- Assuming a 'marketing fee' is always safe because it is not called a referral fee.
- Using 'specialist' in a practice name without the credential.
- Letting a management company set clinical protocols or hire hygienists.
- Offering a guarantee of results in an advertisement.