Average overhead for all specialties

[waldo13]

What percentages of overhead are dentists coming across when they start practicing? I've heard endo has the lowest but I am interested to hear what type of percentages people are coming across for all specialties. Endo, peds, ortho, perio etc. Thanks for any help

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[Mackchops]

What percentages of overhead are dentists coming across when they start practicing? I've heard endo has the lowest but I am interested to hear what type of percentages people are coming across for all specialties. Endo, peds, ortho, perio etc. Thanks for any help

Pros is likely the highest.

 

[waldo13]

Do you have an idea of what percentage you are expecting? @Mackchops

 

[charlestweed]

I have 4 ortho offices. These are things that I have to spend every month for office #1:

-Staff salaries: $5722
- Rent: $2385
- Utilities: $350
- Alarm: $40
- Business License: $70
- Property Tax: $50
- Supplies: $530
- Lab fees: $250
-Advertisement: $218
-Insurance (worker comp and property insurance):$250
- Other expenses: $200
Total: 10,065

Overhead for office 1: $10,065/month
Overhead for office 2: $8570/month
Overhead for office 3: $4085/month
Overhead for office 4: $1730/month

The grand monthly total is around $24K. I work 5 days/month at office 1, 4 days/month at office 2, 2 days/month at office 3, and 2 days/month at office 4. I have 3 full time and 7 part time employees, who travel with me to these 4 offices. Note that the overheads for office 3 and 4 are significantly lower. That's because I work fewer days and I rent the office spaces from the general dentists. I forgot to include the malpractice insurance, which is $2800/year.

My overhead is very low compare to other ortho offices because I still use paper charts and non-digital x ray. I don't have to pay expensive monthly IT supports to maintain expensive equipment. My lab fee is low because I make most ortho appliances in-house. The more outside services you rely on, the higher overhead you'll have.

 

[Silent Cool]

I have 4 ortho offices. These are things that I have to spend every month for office #1:

-Staff salaries: $5722
- Rent: $2385
- Utilities: $350
- Alarm: $40
- Business License: $70
- Property Tax: $50
- Supplies: $530
- Lab fees: $250
-Advertisement: $218
-Insurance (worker comp and property insurance):$250
- Other expenses: $200
Total: 10,065

Overhead for office 1: $10,065/month
Overhead for office 2: $8570/month
Overhead for office 3: $4085/month
Overhead for office 4: $1730/month

The grand monthly total is around $24K. I work 5 days/month at office 1, 4 days/month at office 2, 2 days/month at office 3, and 2 days/month at office 4. I have 3 full time and 7 part time employees, who travel with me to these 4 offices. Note that the overheads for office 3 and 4 are significantly lower. That's because I work fewer days and I rent the office spaces from the general dentists. I forgot to include the malpractice insurance, which is $2800/year.

My overhead is very low compare to other ortho offices because I still use paper charts and non-digital x ray. I don't have to pay expensive monthly IT supports to maintain expensive equipment. My lab fee is low because I make most ortho appliances in-house. The more outside services you rely on, the higher overhead you'll have.

Tweedy,

What is your approximate annual gross revenue?

thanx

 

[Mackchops]

Do you have an idea of what percentage you are expecting? @Mackchops

The number I've heard thrown around is 70%

 

[waldo13]

Thank you very much for that info. It is very helpful @charlestweed

 

[jeffk805dent]

I have 4 ortho offices. These are things that I have to spend every month for office #1:

-Staff salaries: $5722
- Rent: $2385
- Utilities: $350
- Alarm: $40
- Business License: $70
- Property Tax: $50
- Supplies: $530
- Lab fees: $250
-Advertisement: $218
-Insurance (worker comp and property insurance):$250
- Other expenses: $200
Total: 10,065

Overhead for office 1: $10,065/month
Overhead for office 2: $8570/month
Overhead for office 3: $4085/month
Overhead for office 4: $1730/month

The grand monthly total is around $24K. I work 5 days/month at office 1, 4 days/month at office 2, 2 days/month at office 3, and 2 days/month at office 4. I have 3 full time and 7 part time employees, who travel with me to these 4 offices. Note that the overheads for office 3 and 4 are significantly lower. That's because I work fewer days and I rent the office spaces from the general dentists. I forgot to include the malpractice insurance, which is $2800/year.

My overhead is very low compare to other ortho offices because I still use paper charts and non-digital x ray. I don't have to pay expensive monthly IT supports to maintain expensive equipment. My lab fee is low because I make most ortho appliances in-house. The more outside services you rely on, the higher overhead you'll have.

obviously charlestweed works hard but what is also impressive from these numbers is that all of his offices are in Southern CA, a place quite saturated with GPs/specialists (maybe excepts peds).

 

[versace]

I have 4 ortho offices. These are things that I have to spend every month for office #1:

-Staff salaries: $5722
- Rent: $2385
- Utilities: $350
- Alarm: $40
- Business License: $70
- Property Tax: $50
- Supplies: $530
- Lab fees: $250
-Advertisement: $218
-Insurance (worker comp and property insurance):$250
- Other expenses: $200
Total: 10,065

Overhead for office 1: $10,065/month
Overhead for office 2: $8570/month
Overhead for office 3: $4085/month
Overhead for office 4: $1730/month

The grand monthly total is around $24K. I work 5 days/month at office 1, 4 days/month at office 2, 2 days/month at office 3, and 2 days/month at office 4. I have 3 full time and 7 part time employees, who travel with me to these 4 offices. Note that the overheads for office 3 and 4 are significantly lower. That's because I work fewer days and I rent the office spaces from the general dentists. I forgot to include the malpractice insurance, which is $2800/year.

My overhead is very low compare to other ortho offices because I still use paper charts and non-digital x ray. I don't have to pay expensive monthly IT supports to maintain expensive equipment. My lab fee is low because I make most ortho appliances in-house. The more outside services you rely on, the higher overhead you'll have.

Does office one only have one staff member? Because you are only paying them a salary of 68.5k, you'd think you'd need receptionists and assistants

 

[charlestweed]

Does office one only have one staff member? Because you are only paying them a salary of 68.5k, you'd think you'd need receptionists and assistants

Office 1 has 3 F/T and 6 P/T employees. It is the busiest office that is open 5 days/month and has about 350 active patients. My employees travel with me to different offices. When we work at one office, the other offices’ phone lines are forwarded to this office. The beauty of ortho is we don’t need to open our offices every day like the GP offices because we don’t have emergency and walk-in patients like the GP offices. All ortho patients see me by appointments only. That’s why I only need 5 days/ month to take care of my 350 active patients at office 1. Most ortho emergencies can be managed over the phone.


The reason the staff salaries are low (only $5722/month) is I only calculate the number hours that my F/T and P/T employees work at office 1. My office manager only spends about 30% of her time working at office 1. The high school kid, who sterilizes the instruments for the office, only works 4 hours a day 3 days/month at office 1. He’s also my manager’s son.

 

[PikminOC]

http://www.tweedortho.com/
Is this you? Wow