new grads production numbers

[cluelessdr]

What are you new grads producing a month? What is the average number for a regular dentist, not any outliers lol.
I have heard around 40,000? In my head if you are getting 28-30% of that to take home, why would you just not become an owner? easier said than done, but that would be the same as saying as an owner producing 40,000 and overhead being 70% which seems awfully high.

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[odontoblaster90210]

What are you new grads producing a month? What is the average number for a regular dentist, not any outliers lol.
I have heard around 40,000? In my head if you are getting 28-30% of that to take home, why would you just not become an owner? easier said than done, but that would be the same as saying as an owner producing 40,000 and overhead being 70% which seems awfully high.

When you consider the interest on the note you will have to take out to buy or start a practice, that is effectively increasing your overhead. Overhead, without any bank loans is easily 55-60% (especially in nicer areas). Add on a note at 7-8%, and you're actually getting close to that 70% figure. Hence the reason why some people don't want to own and just stay associates.

 

[Roto Picante]

What are you new grads producing a month? What is the average number for a regular dentist, not any outliers lol.
I have heard around 40,000? In my head if you are getting 28-30% of that to take home, why would you just not become an owner? easier said than done, but that would be the same as saying as an owner producing 40,000 and overhead being 70% which seems awfully high.

As an employee, you don't get to keep the profit. If he/she paid you the equivalent of the profit you brought in as employee, what would the benefit to the business owner be? He would be taking on ALL of the risk of ownership all while not receiving the benefits.

When you consider the interest on the note you will have to take out to buy or start a practice, that is effectively increasing your overhead. Overhead, without any bank loans is easily 55-60% (especially in nicer areas). Add on a note at 7-8%, and you're actually getting close to that 70% figure. Hence the reason why some people don't want to own and just stay associates.

This is an overly simplified way of looking at this. Overhead numbers vary widely, especially if you employ associate doctors. The interest on the practice loan is tax deductible but principal payments are not and are paid with after tax dollars. So it is not as simple as just simply subtracting one from the other.

Also, there are many more risks in practice ownership but there are also many benefits that you are completely ignoring in your statement. I.e. tax deductions, retirement contributions, equity in the business, keeping profit made in the hygiene tx rooms....and list goes on. Simply saying an associate keeps 30% while the owner may only keep 30-40% is ignoring too many factors in my opinion.

If any doctor chooses to remaining an associate because they think they are making close to the same amount as their owner doctor, they are probably mistaken.

 

[Roto Picante]

What are you new grads producing a month? What is the average number for a regular dentist, not any outliers lol.
I have heard around 40,000? In my head if you are getting 28-30% of that to take home, why would you just not become an owner? easier said than done, but that would be the same as saying as an owner producing 40,000 and overhead being 70% which seems awfully high.

This varies widely by location. The same amount of work my result in 40k in one area but 80k in another. For example, a crown in Alaska my result in 1400-1700 of production where as it could result in 600-800 in Utah. Same work, different spot. Collections is another story...

 

[AONLINE]

This varies widely by location. The same amount of work my result in 40k in one area but 80k in another. For example, a crown in Alaska my result in 1400-1700 of production where as it could result in 600-800 in Utah. Same work, different spot. Collections is another story...

It also varies among different practices in the same location. At my previous job, UCR for a crown is $1250 and it would usually come down to about $850 after insurance write-off. I then got paid a % from that adjusted production amount. My current job is only a few miles away, crown fee is $1500 and we still get paid about $1100 from the lowest paying insurance that we accept (we are only in-network with 3). We have quite a FFS/cash patients so overall I work less now to produce about the same as my previous job.