Dentist overhead

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dkgrubby

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We often hear about how much money dentists pull in, but we don't often hear about the overhead percentage. I assume alot of the money goes to student loans, running office, equipment, malpractice insurance, paying staff. I would like to know the overhead you guys have. I heard ideally 55 percent is the range you want to be at. If you were really cheap, what ways can you do to reduce overhead? I once heard someone had a 25 percent overhead, wondering how that dentist was able to do that.
 
We often hear about how much money dentists pull in, but we don't often hear about the overhead percentage. I assume alot of the money goes to student loans, running office, equipment, malpractice insurance, paying staff. I would like to know the overhead you guys have. I heard ideally 55 percent is the range you want to be at. If you were really cheap, what ways can you do to reduce overhead? I once heard someone had a 25 percent overhead, wondering how that dentist was able to do that.

http://www.dentaltown.com/MessageBoard/UserUploads/Attachments/54180_DENTALTOWN08benchmarks_364.pdf

The table I referenced from Dentaltown should supply you with answers to many of your questions. It is based on production. If you want a very low overhead realistically run a very small office with a small staff in an area with low rent or work for someone.
 
I have my overhead at around 24-30% depending on the month or quarter or whatever. The key is having a small, well trained staff.
 
I have my overhead at around 24-30% depending on the month or quarter or whatever. The key is having a small, well trained staff.

Hey is it possible for you to elaborate on this.

I have heard before through research that a dentist can keep his overhead low with a great staff, higher case acceptance rate, monthly new patient flow, and quality work. I have heard of a 30% overhead only once and I would be extremely greatful if you could go into detail for me how you manage this.

If you would like to PM that is fine as well. Hope to hear from you

Thanks.
 
Mainly just keep in mind that all the little things add up.

Don't treat pvs like alginate, repair (small) things on your own vs. making a service call, maintain things vs replace, "single use" diamond burs- sterilize them and they are fine for a couple crown preps, etc.
 
And the small, well trained staff is the most important thing. Having to train a new staff member takes time and money, but having a poorly trained staff member is a lot more expensive.
 
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