Average Compensation For A Graduating Dentist

[GRockHead]

Hey everyone, I am a D4 currently on the job hunt. I have received a couple offers but am not sure of the going rate for new grads.

Offer #1

Office Type: Private
Office Production: $2.5 mil/year
Collection Rate: 97%
Daily Guarantee: $625/four months
Production: 30% adjusted
Average Employee Production: $38,000/month (11,400 after 30% applied)
Employed Dentists: 4
Lab Fees: None
Technology: Laser
Contract Length: 18 months

Offer #2

Office Type: Heartland
Base Salary: $120,000
Production: 25%
Technology: Scanners
Contract Length: 1 year

Seems like Office #1 has a low monthly production average. What should I counter with? If anyone here has taken a job, what kind of compensation are you looking at?

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[chlrbwls]

Doing the math for you,

120k base pay means you have to produce 40k per month before breaking even
120k / 0.25 / 12 = 40k


you are getting more bang for your buck on the first offer

 

[knewstance]

This private office seems like the winner on this one, hands down. More room for growth without being required to buy into the office.

If you wanted to counter anything, maybe increasing your daily guarantee slightly. You should be over producing $625 avg @ 30% within a few months anyways. I don't think it's worth trying to get that for longer bc your goal is to not need the guarantee in the long run.

 

[Aspire2019]

Hey everyone, I am a D4 currently on the job hunt. I have received a couple offers but am not sure of the going rate for new grads.

Offer #1

Office Type: Private
Office Production: $2.5 mil/year
Collection Rate: 97%
Daily Guarantee: $625/four months
Production: 30% adjusted
Average Employee Production: $38,000/month (11,400 after 30% applied)
Employed Dentists: 4
Lab Fees: None
Technology: Laser
Contract Length: 18 months

Offer #2

Office Type: Heartland
Base Salary: $120,000
Production: 25%
Technology: Scanners
Contract Length: 1 year

Seems like Office #1 has a low monthly production average. What should I counter with? If anyone here has taken a job, what kind of compensation are you looking at?

Math is not adding up in offer 1 -
2.5MM/4 = 625K
625K/12=~52K so why is avg employee production 38k?
Or is 2.5MM before adjustments? Then really it does not mean anything.

You did not mention number of hours but assuming 40 hrs/week and if you work 22 days a month -
At 38K production your minimum daily guarantee is more than production so after 4 months your income will drop. Assuming of course you are not doing more than average.
625x22 = 13750
30% of 38K = 11400

Of course if this is just for 20 hours a week then you can work elsewhere and double your income 😉

Also, there are more factors that influence your production. Is there a good patient flow to keep you occupied. Corp loves to hire additional capacity as it does not cost them much and they do not care if you sit idle. But you do, as you learn less and do not build up your production. If there is already an established doc at the office most patients will go to that person.
How will new patients be divided up?
Did you get similar avg production numbers from heartland?

Kinda mess to figure out what is best. I am trying to do the same. 😀

More feedback for more experienced dentists is welcome. It will help us newbies.

 

[GoDental101]

Math is not adding up in offer 1 -
2.5MM/4 = 625K
625K/12=~52K so why is avg employee production 38k?
Or is 2.5MM before adjustments? Then really it does not mean anything.

You did not mention number of hours but assuming 40 hrs/week and if you work 22 days a month -
At 38K production your minimum daily guarantee is more than production so after 4 months your income will drop. Assuming of course you are not doing more than average.
625x22 = 13750
30% of 38K = 11400

Of course if this is just for 20 hours a week then you can work elsewhere and double your income 😉

Also, there are more factors that influence your production. Is there a good patient flow to keep you occupied. Corp loves to hire additional capacity as it does not cost them much and they do not care if you sit idle. But you do, as you learn less and do not build up your production. If there is already an established doc at the office most patients will go to that person.
How will new patients be divided up?
Did you get similar avg production numbers from heartland?

Kinda mess to figure out what is best. I am trying to do the same. 😀

More feedback for more experienced dentists is welcome. It will help us newbies.

The discrepancy between the 38k vs the 52k is likely due to a portion of that total office production being tied into hygiene which the associate would not receive a % of.

 

[Aspire2019]

The discrepancy between the 38k vs the 52k is likely due to a portion of that total office production being tied into hygiene which the associate would not receive a % of.

Makes sense.

 

[Roto Picante]

2.5Mil seems low for 4 docs with Hygiene. Hygiene probably accounts for 20-30% of the prduction leaving 2 Mil or less divided 4 ways.
Some other things to consider: Are you replacing someone or will you be the 5th doc? If you are an add on, it could be more than 4 months before you are producing enough to make up the difference. And you will likely be the bottom of the totem pole and will be doing bread and butter dentistry. Is there a non compete clause? If you really want to practice in this area, if the relationship doesn't work out and you decide to leave, can you still practice there? You need to assume the relationship may fail and you will need to get a different job, don't paint yourself into a corner with non compete clauses.

 

[Roto Picante]

Also, if the production is 38000, adjusted production will be less than that depending on how many insurances are accepted and how much is written off. It can range anywhere from 0%-30% or more.

 

[George Lincoln]

F

Hey everyone, I am a D4 currently on the job hunt. I have received a couple offers but am not sure of the going rate for new grads.

Offer #1

Office Type: Private
Office Production: $2.5 mil/year
Collection Rate: 97%
Daily Guarantee: $625/four months
Production: 30% adjusted
Average Employee Production: $38,000/month (11,400 after 30% applied)
Employed Dentists: 4
Lab Fees: None
Technology: Laser
Contract Length: 18 months

Offer #2

Office Type: Heartland
Base Salary: $120,000
Production: 25%
Technology: Scanners
Contract Length: 1 year

Seems like Office #1 has a low monthly production average. What should I counter with? If anyone here has taken a job, what kind of compensation are you looking at?

First make sure you’re comfortable with the ethics of the office. Second use the time to gain experience and see what direction you want to go. Third do what you want to do.
Don’t over think it this is the road map to success.