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Here are the salary figures from their website.
Good business sense.
In the first seven years you will earn 150K or 40% of NET profits, whichever is greater. SO, in order to make more than 150, you will have to have net proffits for the business of greater than 375K. If you assume that the office will have 50% overhead, then you will have to make greater than 750K gross. That means that they will be making 225 thousand dollars off of each resident when they are done, if they max out their production.
If you assume that you will gross 1,000,000, and that the overhead is a more likely 40% for a big company like OEC, then you will have 600K net. With that net you will still only get 240,000. The company will then make 360K on your hard work. If you are in years 13+ you will still make only 360K for their 240K. Over a ten year period, that 225k that you are giving them each year is a boatload of money. You would be better off as a GP in most instances.
With this set up you are taking home 16-20 % of collections, depending on the overhead. WOW!
An example for private practice: If you see 60 ortho patients per year at 5500 per case, that is 330,000. If you can keep your overhead to 40-50% (which you should be able to do, starting five patients per month), then you will have 165K.
Another example for those that need to do ortho so bad: You are a GP and do three crowns per day, average, charging 700 a pop. That is 10500 a week if you work five days. Assume 65% overhead and you have 3675 a week. If you work 50 weeks per year you are making 190K.
The last example doesn't include fillings, cleanings, etc, so it is probably even low for a high power practice. Most GPs that we had interview last year for ortho said they would be taking a big money hit to go into ortho, because most of them are in high level cosmetic practices.
Summary: OEC is out to get your money, plain and simple. Be careful what you sign up for.
Caveat: If you know what you are signing up for and understand what they are going to be doing to you, have fun!
Good business sense.
In the first seven years you will earn 150K or 40% of NET profits, whichever is greater. SO, in order to make more than 150, you will have to have net proffits for the business of greater than 375K. If you assume that the office will have 50% overhead, then you will have to make greater than 750K gross. That means that they will be making 225 thousand dollars off of each resident when they are done, if they max out their production.
If you assume that you will gross 1,000,000, and that the overhead is a more likely 40% for a big company like OEC, then you will have 600K net. With that net you will still only get 240,000. The company will then make 360K on your hard work. If you are in years 13+ you will still make only 360K for their 240K. Over a ten year period, that 225k that you are giving them each year is a boatload of money. You would be better off as a GP in most instances.
With this set up you are taking home 16-20 % of collections, depending on the overhead. WOW!
An example for private practice: If you see 60 ortho patients per year at 5500 per case, that is 330,000. If you can keep your overhead to 40-50% (which you should be able to do, starting five patients per month), then you will have 165K.
Another example for those that need to do ortho so bad: You are a GP and do three crowns per day, average, charging 700 a pop. That is 10500 a week if you work five days. Assume 65% overhead and you have 3675 a week. If you work 50 weeks per year you are making 190K.
The last example doesn't include fillings, cleanings, etc, so it is probably even low for a high power practice. Most GPs that we had interview last year for ortho said they would be taking a big money hit to go into ortho, because most of them are in high level cosmetic practices.
Summary: OEC is out to get your money, plain and simple. Be careful what you sign up for.
Caveat: If you know what you are signing up for and understand what they are going to be doing to you, have fun!