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 05-23-2012, 01:48 PM #1 Senior Member   Join Date: Jan 2012 Posts: 146 Owning Your Own Practice, Office, and Lab SDN Members don't see this ad. (About Ads) We all know that there are many dentists that own their own practice. There are even quite a few dentists that own their own office, this saves them about 4% overhead (usually about \$48,000 a year), but couldn't a dentist own their own dental laboratory too? Since a dental lab. generally runs for 8% of expenses than a dentist can save 8% or more of overhead in owning one (and they're usually cheaper than buying an office or a practice too). In addition to that a dentist could make money off of the laboratory all together in serving other dentists. Thoughts? Last edited by Frank22; 05-23-2012 at 02:09 PM.
 05-23-2012, 02:39 PM #2 Senior Member   Status: Dental Student Join Date: Oct 2010 Location: Ohio Posts: 639 The dentist I went to for many years growing up owned his own building which included a lab in the basement. I'm not sure on the specifics or how much money is saved/earned this way--I'd love to talk to him about it--but I know he is doing EXTREMELY well.
 05-23-2012, 02:51 PM #3 Senior Member   Join Date: Jan 2012 Posts: 146 If you ever talk to him about it please let me know what sort of information acquire. Assuming a dentist is working five days a week on a patient base of 1500 where each patient is providing \$750 a year (on 98% collections and 60% overhead): 1500 x \$750/year = \$1,125,000-gross/year \$1,125,000 x 0.98 = \$1,102,500-collections/year \$1,102,500 x 0.6 = \$661,500-overhead \$1,102,500 - \$661,500 = \$441,000-net If you own your own office you save 4%, or \$44,100. Your lab is worth 8% of collections, or \$88,200. \$441,000 + \$44,100 + \$88,200 = \$573,300 So for an office grossing \$1,125,000 a year the doctor would net \$573,300 alone if they owned their own office and lab, this is not including the income generated by other doctors paying rent or the income of selling lab materials to other dentists.
05-23-2012, 04:33 PM   #4
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Join Date: Apr 2012
Posts: 197

Quote:
 Originally Posted by Frank22 We all know that there are many dentists that own their own practice. There are even quite a few dentists that own their own office, this saves them about 4% overhead (usually about \$48,000 a year), but couldn't a dentist own their own dental laboratory too?
Probably--if the dentist has the time, capital, manpower, demand, etc. to operate it and the business structure/arrangement doesn't violate anti-kickback statutes or other laws.
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 05-23-2012, 07:13 PM #5 Senior Member   Status: Dental Student Join Date: May 2011 Posts: 313 I'm stupid. I thought dental practice/office were the same thing lol. Whats the difference? Dentist with dental office owns the whole building? __________________ http://DATsuccess.wordpress.com - Guide to be successful on the DAT PAT: 19 QR: 19 RC: 23 BIO: 23 GC: 29 OC:23 Total Science: 24 AA: 23 Class of 2017 Interviews: NYU, UNLV, Temple, BUF, NOVA, MW-AZ, Tufts (Declined) Accepted: NYU, Temple, UNLV Waitlisted: NOVA, UB, MW-AZ Rejected: None
05-24-2012, 06:02 AM   #6
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Join Date: Jan 2012
Posts: 146

Quote:
 Originally Posted by ttpharm I'm stupid. I thought dental practice/office were the same thing lol. Whats the difference? Dentist with dental office owns the whole building?
No; you buy a practice (almost always through a loan) that's going to be in an office. You must pay the owner rent for practicing in their office every month--for a healthy practice this is 4% of your total expenses. If you own the office you no longer pay rent and collect rent from every doctor working in your office.

Many times the office of a dentist is not a particularly great investment: the value of the office when you sell it will usually only be slightly higher than when you bought it taking into account inflation. However, over the years the money accumulated via owning the office can be notable: in the tens or hundreds of thousands.

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