How to buy a dental practice in Saskatchewan: licences, ownership rules and what transfers

Dentistry in Saskatchewan is regulated by the College of Dental Surgeons of Saskatchewan (CDSS), which the College describes as the regulatory body responsible for licensing and regulating dentists in the province under The Dental Disciplines Act. What follows is drawn from the Act and from the College’s Clinic Facilities Standard. It is general information, not advice on a particular deal. Read it with the national guide to buying a dental practice in Canada beside it.

The licence belongs to the dentist, not the clinic

Section 24(1) of The Dental Disciplines Act says that no person shall perform an authorized practice unless one of the listed grounds applies. One ground is membership in an association whose members are authorized to perform that practice, provided the member’s licence does not prevent it. Another is that such a member has delegated the practice to a person that member employs, in accordance with the association’s bylaws. A third covers a person authorized under any other Act, and subsection 24(2) adds exceptions for first aid or temporary assistance in an emergency and for supervised work toward membership. The rule is written around the person who performs the work. Buying the clinic does not give the buyer, or the buyer’s company, any right to practise, so a buyer who is a dentist needs their own CDSS licence in good standing. The copy of the Act cited here is a consolidation hosted by the College that incorporates amendments up to 2023, and it states that it is not official, so confirm the current text before relying on it.

Who may own a clinic in Saskatchewan

The College’s Clinic Facilities Standard states that ownership is not addressed in the Act or the bylaws, and that a dental clinic facility can therefore be owned by anyone. That is the College’s reading for Saskatchewan and should not be assumed in another province. The same Standard then adds limits that apply to registrants. A registrant may not, except with the consent of the council, engage in private practice for the benefit or advantage of any corporation, or of any person not duly qualified and lawfully entitled to practise dentistry or medicine in Saskatchewan, unless one of the listed exceptions applies, such as a professional corporation under the bylaws or an employer referred to in section 25(1) of the Act. Each registrant is also responsible for making sure that any professional corporation of which they are a director complies with the bylaws and its permit.

The annual facility permit

The Standard says a primary dentist connected to a practice must ensure that a CDSS Annual Facility Permit is approved by the Registrar before dentistry is practised in the facility. It defines a dental clinic facility broadly, as all places used by or connected to a fully licensed registrant to perform authorized practices on a patient. The Standard does not say how a permit is handled when the practice changes hands. Ask the College, before the closing date is fixed, what must be filed and approved for the new primary dentist, and whether the clinic may keep treating patients in the meantime.

Leases and payments tied to fees

The Standard bars a registrant from entering any agreement, including a lease of premises, under which the amount payable by or to the registrant, directly or indirectly, is related to the fees the registrant or another licensed health professional charges. The only exceptions listed are a contract for services with another registrant, a physician licensed by the College of Physicians and Surgeons of Saskatchewan, or a dental assistant, hygienist or therapist, or with a corporation, partnership or other entity controlled by a registrant, registrants or such a physician. If the seller’s landlord, a management company or an equipment supplier is paid in a way that moves with fees, ask the College whether the arrangement fits the Standard before you assume it.

Patient records and continuity of care

According to the Standard, patient records are the responsibility of the connected dentists as trustees under Saskatchewan’s Health Information Protection Act. It also lists, among the connected dentists’ responsibilities, appropriate continuity of patient care and custody of records following practitioner and practice transitions, including retirements. Ask who the trustee is today, where the records are kept, and how the seller will notify patients and hand over custody. The Standard also covers the staff: assistants, hygienists and therapists must be employed by or in contract with a dentist, a dental professional corporation or an agency under section 25 of the Act to perform their authorized practice.

Federal tax and financing checks

Whether the deal is a purchase of shares or of assets is for your lawyer and accountant, because the College’s documents do not decide it. The Canada Revenue Agency says a seller with a business number might have to cancel it and must close a payroll account if there are employees, and that a seller of a business may be able to jointly elect with the purchaser for no GST/HST to be payable on the sale. Those are federal rules. For funding, Innovation, Science and Economic Development Canada says the Canada Small Business Financing Program shares risk with lenders. Ask your lender whether a dental practice purchase fits the program. You can also browse healthcare businesses for sale.

Ask the seller for these documents:

• The current CDSS Annual Facility Permit and the name of the primary dentist connected to the practice.
• The lease and every agreement for premises, management or equipment, so any payment tied to fees can be reviewed against the Standard.
• The professional corporation’s permit and bylaw filings, if the practice is held that way.
• A statement of who is the trustee of the patient records, where they are kept, and the proposed handover plan.
• Employment and contract terms for each assistant, hygienist and therapist, showing which dentist or agency they work under.