Episode 454

Mutual Aid Agreement: Everything You Need to Know

Host: Gary Takacs | Published Date: September 23, 2020 | Listening Time: 00:55:05

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In this week’s Thriving Dentist Show, Gary Takacs will talk about everything you need to know regarding the Mutual Aid Agreement and how to set it up in advance.

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This episode will help you understand why practice value is the most valuable asset for a dental practice and why it’s highly dependent on the dentist. 

Gary will also be sharing 3 examples in this podcast episode where he demonstrates how he used the Mutual Aid Agreement to help his clients from closing down or selling their practice when they fell sick or were unable to practice due to injury. He will also be providing you with step by step guidelines which you can use to make a Mutual Aid agreement for your practice with a group of colleagues.

Listen to the episode to find out how you could prepare your dental practice to continue thriving, even if something unexpected happens to you.

What many young dentists do as they start their practice right after they graduate dental school is buying disability insurance that is indexed to their income.Their income is likely to be lower at that point, and they never upgrade it. If something would happen 15 years down the road, they would discover that the disability insurance they have is a fraction of what they actually need.

In order to avoid these kinds of mistakes and to be prepared for any unfortunate events, listen to this podcast episode now and learn how a Mutual Aid Agreement can help you and what you need to do to create one for your practice.

Time Stamps

  • 00:00:24 – Introduction
  • 00:01:01 – Announcement
  • 00:04:23 – What is the most valuable asset for a dentist?
  • 00:04:55 – Why is practice value the most important asset in a dental practice?
  • 00:06:09 – Why is it important to buy as much disability insurance as you can?
  • 00:06:34 – Is disability insurance limited?
  • 00:06:59 – Why is it important to have a meeting annually with your disability insurance agent?
  • 00:08:57 – Gary shares his experience of using Mutual Aid Agreement with his clients.
  • 00:09:44 – 1st example of Gary using Mutual Aid Agreement for his clients.
  • 00:11:23 – Will the mutual aid agreement help if the dentist passed away or permanently dis-abled?
  • 00:12:23 – 2nd example of Gary using Mutual Aid Agreement for his clients.
  • 00:13:29 – What would happen if you temporarily close your practice?
  • 00:15:06 – 3rd example of Gary using Mutual Aid Agreement for his clients.
  • 00:16:53 – Guide to set up a Mutual Aid Agreement
  • 00:16:58 – How to put together a group of colleagues?
  • 00:18:34 – How many dentists should you have in the mutual aid agreement to help each other?
  • 00:20:12 – Do the group of dentists in the mutual aid agreement have to be friends or around the same age?
  • 00:20:58 – Should the agreement be renewed?
  • 00:22:32 – Why do you need to have a current practice appraisal?
  • 00:23:41 – How are appraisals done at LifeSmiles?
  • 00:24:20 – What is the important pre-agreement you need to have outside the Mutual Aid Agreement?
  • 00:25:11 – How you could make a buy sell agreement of your practice with one of your co participants in the mutual aid agreement.
  • 00:27:06 – Recap of how to set up a Mutual Aid Agreement
  • 00:27:56 – How the ADCPA can help your Mutual Aid Agreement.


  • 00:33:36 – Question 1 – How many dentists would be ideal for a Mutual Aid Agreement?
  • 00:37:33 – Question 2 – Is it better to recruit Dentists from outside of my immediate area for the Mutual Aid Agreement?
  • 00:40:50 – Question 3 – What is the best way to pay the Dentists who are covering in the mutual aid agreement?
  • 00:43:16 – Question 4 – In the event of a long term disability, how long should the Dentists in the mutual aid agreement continue to cover the practice, before the owner sells the practice?


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Gary Takacs

Gary Takacs Gary became a successful practice owner by purchasing a fixer-upper practice and developing it into a world-class dental practice. He is passionate about sharing his hard-earned insights and experiences with dental practices across the globe.

As a dental practice coach, Gary provides guidance for dental professionals on how to create a healthier practice style that lets them deliver excellent patient care while reducing depending on insurance.

More importantly, Gary’s insights are not just based on theory – as a co-owner of a dental practice, he has first-hand experience in making this transformation from a high-volume and low-fee insurance model to a fee-for-service approach that is more sustainable and promotes a patient-centric and financially healthy dental practice, and he is dedicated to sharing this knowledge with other dental practitioners via the popular Thriving Dentist Show!
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