gp salary

[cluelessdr]

so we hear all the time about reimbursement rates from ins keep getting lower over the years or havent changed for 30 years. one thing that seems to be the same, or at least it seems like, is private practice ownership salary. it seems to always be 200-300k a year. does this mean because they are worker harder, seeing more pts per day, to offset the reimbursements? it doesnt add up. help me out here lol

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[beannaithe]

The private practice ownership salary is an average. Some make less, some more. It's not uncommon for some doctors to own multiple practices and that can skew the salary results. But you are right, more doctors are seeing more patients or doing more complex procedures with higher reimbursement (implants, overdentures, Invisalign, etc) to offset the decrease in reimbursements for bread and butter dentistry. If you're not expanding your skill set, the only way to make the same is to work harder (more patients) or smarter. Think more hygiene, better utilization of chair time, expanded function auxillary staff, delegating as much as you can to your support staff, using cheaper labs.

Another thing that I've also been seeing is decreasing %'s for associates. 33-35% used to be average when I graduated. Now, it tends to be closer to 30%.

 

[Rambunctious]

so we hear all the time about reimbursement rates from ins keep getting lower over the years or havent changed for 30 years. one thing that seems to be the same, or at least it seems like, is private practice ownership salary. it seems to always be 200-300k a year. does this mean because they are worker harder, seeing more pts per day, to offset the reimbursements? it doesnt add up. help me out here lol

Thats a low owner salary tbh. More like half a milli and up. That sounds like an owner dentist in a metropolitan area.

 

[cluelessdr]

Thats a low owner salary tbh. More like half a milli and up. That sounds like an owner dentist in a metropolitan area.

so youre saying in rural area u can bank half a mill to a mill? or is that gross?

 

[Bdsuk]

Thats a low owner salary tbh. More like half a milli and up. That sounds like an owner dentist in a metropolitan area.

lmao this is hillarious

 

[P7898]

Dentistry income is based on your skills and what you can do and your business knowledge. If you have those and a good personality then you'll do just fine. Everyone is soo fixated on numbers. Just do what you like doing and the money will come.

 

[Rambunctious]

lmao this is hillarious

Glad you're laughing at yourself. Also you have no idea since you're in a GPR AEGD. you have no idea what the work force is like, you're still a student.

 

[Rambunctious]

so youre saying in rural area u can bank half a mill to a mill? or is that gross?

That's after taxes, in the bank

 

[laundry]

Curious to see what 2020 is going to be like after we re-open. Went from 2019 gross of 700K to filing for unemployment (I own, but also pay myself an hourly wage). If we re-open in May and are able to do biz as usual, shouldn't affect the income for the year that much. If we delay opening by another month and see reduction in hygiene visits, then...then let's just say I can expect a big tax refund next April 🤣

All in all guys and gals, dental business is like any other business. One has to evolve to survive. Those who can restructure their business models in a post COVID-19 era will do fine financially.

 

[cluelessdr]

Curious to see what 2020 is going to be like after we re-open. Went from 2019 gross of 700K to filing for unemployment (I own, but also pay myself an hourly wage). If we re-open in May and are able to do biz as usual, shouldn't affect the income for the year that much. If we delay opening by another month and see reduction in hygiene visits, then...then let's just say I can expect a big tax refund next April 🤣

All in all guys and gals, dental business is like any other business. One has to evolve to survive. Those who can restructure their business models in a post COVID-19 era will do fine financially.

how much did you net lol

 

[laundry]

how much did you net lol

Lol enough - that is between me, my CPA, and uncle Sam 😉

 

[P7898]

Lol enough - that is between me, my CPA, and uncle Sam 😉

That’s like a Costco building size of toilet paper.

 

[Bdsuk]

Glad you're laughing at yourself. Also you have no idea since you're in a GPR AEGD. you have no idea what the work force is like, you're still a student.

hahahahaha. I know tons of owners making around 200k (ada average 170-180k) so unless there are just as many people making 800k+ as 200k then I don't see how 500k would be a realistic average. Does it happen? Yes, I know plenty of practice owners who make 400k-500k, but they are far from the average.

 

[PracTxDentist]

Glad you're laughing at yourself. Also you have no idea since you're in a GPR AEGD. you have no idea what the work force is like, you're still a student.

Well, the truth is "Rambunctious", it is a little naive of you to presuppose that most or avg GP's (even in rural areas) net $500k-$1M/yr after taxes. Some do, most do not, even in rural areas. I have two private practices in rural areas (one is established and is a monster and the other is new). I have advanced training and do implants, comp bony thirds and everything in between and have associates, so we are able to provide broad-scope quality treatment. My net is large. But most of my dentist friends make FAR less. I review many practices that come on the market for sale and it is very unusual to find a practice that has similar financials as my primary prac. Thus, it is very uncommon for dentists to net over $500k/yr. If you do, congrats! You are a minority.
The key owner doctors need to understand is controlling overhead expenses and ensuring that you personally have a high savings rate. Its far better to save and responsibly invest most of your net compared to someone (most people) who has a high monthly net, but has a low savings rate (i.e., they go and spend it on every monthly payment imaginable). Now, if you have a high monthly/annual net and you have a high savings rate, then even better!

 

[Rambunctious]

hahahahaha. I know tons of owners making around 200k (ada average 170-180k) so unless there are just as many people making 800k+ as 200k then I don't see how 500k would be a realistic average. Does it happen? Yes, I know plenty of practice owners who make 400k-500k, but they are far from the average.

So you know "tons of owners making 200" and "plenty of owners making 400-500". You pretty much know everything and everyone? Sounds like a new grad 🤣 wait until you work a few years and realize you don't know anything

 

[Big Time Hoosier]

Livin’ that rich dentist dream!

Big Hoss

 

[allDAT]

In general...yes maintaining the same income or increasing your income with declining reimbursement is done by:

1) volume
2) adding procedures
3) changing the way you treatment plan
4) deceasing overhead (either by collecting more or by becoming leaner).

 

[Molar Whisperer]

I'm not a savvy owner dentist. Most owner dentists will think I'm a loser since I'm still an associate working on Medicare patients for 18 years plus 4 years as an USAF dentist. My state is still paying me the same daily rate of $700 per day for sitting and writing here but that may change and I may be crying later. I like to think outside-the-box and I hope to find opportunities for income after this crisis to help make up what is lost. If you have a CPA friend, or if not, kiss up to one and discuss some investment options. Many sources of passive income may be on clearance sale soon...sorry to sound like a vulture and I hope none of your loved ones will get severely impacted. An example of an outside-the-box thinking is from a business source I can't remember so I'll paraphrase it. According to the source, the author passes by this foreclosed funeral home (irony for the unfortunate number of deaths from the Covid disease) daily. Since the time period was before the internet age, he would hire someone to cold call all the surrounding funeral homes if they would like to expand. It wasn't easy but they finally found a business considering to expand. According to the author, he had found his tenant before he even committed to the property. Many dentists only think by the book miss other opportunities. Of course there are plenty of pitfalls with passive income and I don't have any experience. Maybe this post might provide some insights.