Dental practice ownership rules in Alberta

Alberta treats the ownership of a dental practice as part of professional regulation. The College of Dental Surgeons of Alberta says sections 104 to 115 of the Health Professions Act make clear that only a licensed member, a registered practitioner or a professional corporation may engage in the practice of dentistry. It also says that the sale of a dental practice to a non-dentist, such as a corporation, is contrary to the Act. A buyer should therefore confirm with the College that it is a dentist or a dentist’s professional corporation before any price is discussed. This guide uses the College’s own pages to show how that works for a buyer, a seller and the practice itself. For the wider purchase, see buying a dental practice in Canada.

Professional corporations

According to the College, any registered dentist in Alberta can become incorporated, and the Act does not permit different rules for a dentist who practises through a professional corporation than for one who practises individually. The articles must be signed by the incorporating dentists, so a lawyer cannot sign for them, and they can be signed only on the date they are approved or the date the permit is created. The College also states that the proclamation of Bill 53 now lets Alberta dentists who use a professional corporation benefit from legislation that removes restrictions on share ownership and allows family members to own non-voting shares. Ask the College, and a lawyer, how that applies to the buyer’s planned shareholders. The College also describes a Statement of Particulars (Form B) that it says many dentists have sent to their lawyers or accountants to complete, and it says articles of amendment or amalgamation must keep the mandatory clauses current.

The responsible dentist and the practice arrangements

The College’s Responsible Dentist and Practice Arrangements Form says every practice must appoint a responsible dentist. The owner of the practice may be, but is not required to be, the responsible dentist. That dentist must have continuous and ongoing connection to the practice, including involvement in and knowledge of its operations. The form’s stated purposes are to identify the responsible dentist, the structure of the practice and the people involved in its operations and management. It also describes a sole dentist owner as a practice with a single dentist owner who has no professional corporation and is a sole proprietor, and it notes that such an owner may have agreements with associate dentists. A buyer should ask who will hold the role on the first day and when the College expects the form after a sale.

When the selling dentist leaves

The College says a dentist who plans to retire and owns the clinic must notify patients and give details about the future of the practice, including what will happen to their dental records and who will continue treatment for patients with planned or partially completed treatment or conditions that need monitoring. Records must be transferred to another regulated member of the College under an agreement that the other member will act as custodian, and they can be stored at the custodian’s practice or in secure off-site storage. Cancelling the practice permit is done through the Registrant Portal, and professional liability insurance must also be cancelled. A buyer should ask who the custodian is and whether the agreement is in writing.

Equipment, facilities and the practice permit

Employers, responsible dentists and owners of dental x-ray equipment must notify the College’s Radiation Program in writing within 30 days after selling, leasing, transferring, lending, assembling or installing designated radiation equipment. The notice includes the manufacturer, model and serial number and the date on which ownership or possession changed. A dentist cancelling registration who is an accredited facility owner or dental operator must advise the College 30 days before cancelling, and an accredited Dental Surgical Facility must have a dental operator. The standard the College quotes also requires the dental operator to advise it in writing, in anticipation of or in advance of any change of ownership of an accredited Dental Surgical Facility, and of any intended change of dental operator. Each dentist’s practice permit must be displayed where they practise or produced when asked, so confirm that the buyer’s permit is in place before the first appointment under new ownership.

Questions to settle before signing

• Whether the buyer is a registered Alberta dentist or a professional corporation permitted by the College, and who its shareholders will be.
• Who will be the responsible dentist, and how the practice arrangements form will be filed after the sale.
• Which dentist will act as custodian of the seller’s patient records, and how patients will be told.
• Whether the practice holds an accredited Dental Surgical Facility, and what must be reported to the College before and after the sale.
• How the x-ray equipment notices will be given within the time the College sets.