Units of Dental Activity (UDAs), along with Unity of Orthodontic Activity (UOAs), are the currency of the NHS work carried out at your practice, as prescribed to you under your GDS or PDS Contract. If you hold an NHS Contract and you intend to sell your dental practice or bring in one or more partners, or indeed buy a practice or share in a practice, the apportionment of NHS income will be a notable concern.
The apportionment of UDAs may also be factor for you in negotiating your Partnership Agreement or your Associate Agreement, when either buying into a partnership or becoming engaged as a self-employed associate at a practice.
Why is UDA and UOA income important to consider?
More pertinent, is the regulation of the NHS income and the performance of the NHS contract target. Commonly, a dental practice does not see an equal number of patients each month. Therefore, the income from NHS work can be less regular and predictable than it may be from other revenue streams such as Capitation Schemes. As a result, the pro-rated target of the NHS contract may be either underperformed or overperformed from month to month.
What if I am selling my dental practice or buying a dental practice?
An effective sale and purchase agreement, should clearly outline how dental fees from NHS work is to be apportioned between buyer and seller. Any agreement should cover scenarios where the pro-rated NHS Contract target has been either underperformed or overperformed, up until the date which the transaction completes.
A sale and purchase agreement which does not address these provisions clearly risks a higher potential for contentious claims between buyer and seller resulting in lengthy and costly disputes. This scenario is avoidable, by having a sale and purchase drafted and negotiated by expert dental solicitors which clearly determines the UDA apportionments.
What if I already have a dispute concerning UDA or UOA apportionment?
The expert solicitors in our dispute resolution team regularly advise clients in respect of UDA and OUA apportionment issues arising out of sold or purchased dental practices, associate agreements, and dental partnerships.
Should issues arise, our commercial litigation team will provide down to earth and cost effective legal advice, and will work with you to achieve a postive outcome.
Our litigation solicitors will always look for a commercially sensible settlement and will advise on relevant forms of alternative dispute resolution (ADR) so that court might be avoided. If court proceedings do become necessary, our dispute resolution team can act swiftly and provide sensible advice to guide clients through the process to work towards a positive outcome.
What do I do next?
Our specialist dental lawyers have a solid understanding of UDA performance and apportionments and use this to regularly advise clients on dental transactions and legal disputes. We have extensive experience in drafting specific and effective sale and purchase agreement for our dental clients and in advising where disputes arise.
For advice on UDA apportionments, or other legal issues arising out of your ownership of a dental practice, please call us on 0845 225 2635