Salary comparison: General Dentist is PHS vs. Private Sector

[USPHS Dentist]

This pdf file compares the salary of a general dentist in the PHS at multiple points throughout their career to a general dentist in the private sector. It also compares their retirement income.

The PHS salary and retirement is probably pretty similar to what the other services get.

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[Hedgy]

This pdf file compares the salary of a general dentist in the PHS at multiple points throughout their career to a general dentist in the private sector. It also compares their retirement income.

The PHS salary and retirement is probably pretty similar to what the other services get.

I think this makes PHS/Gov't look very lucrative compared to private practice. Since I am in private practice, I will give you my take on this:

#1 Malpractice insurance and health insurance and retirement are expensed unless you are a C-corp, which very few are these days.

#2- I have an average practice, maybe even smaller than average at about $720k/yr with 55% overhead on a 4-day week. After student and practice loans, my take home has been about $144,000 at 10 years. When those are paid off in 4 years, I will have that extra $80k as income. I also invest about $35,000/yr in my 401K.

#3-I have never seen anyone qualify for a multi-year retention bonus at least until year 6+. This assumes some residency and payback or 4-6 years which will be added on or run concurrent to any prior commitment.

 

[distressstudent]

I think this makes PHS/Gov't look very lucrative compared to private practice. Since I am in private practice, I will give you my take on this:

#1 Malpractice insurance and health insurance and retirement are expensed unless you are a C-corp, which very few are these days.

#2- I have an average practice, maybe even smaller than average at about $720k/yr with 55% overhead on a 4-day week. After student and practice loans, my take home has been about $144,000 at 10 years. When those are paid off in 4 years, I will have that extra $80k as income. I also invest about $35,000/yr in my 401K.

#3-I have never seen anyone qualify for a multi-year retention bonus at least until year 6+. This assumes some residency and payback or 4-6 years which will be added on or run concurrent to any prior commitment.

That's a very nice overhead percentage. Got any tips for keeping it that low?

 

[Hedgy]

1 assistant. Negotiate with supply companies. I'm on the Darby Synergy Program and it saved me 20-35% on supplies vs Schein. Don't buy into all the technology buzz unless the ROI is there. Hygiene at 45 min appts if they can manage that-don't need an hour for a prophy on a kid either, more like 1/2 hour.

 

[USPHS Dentist]

Hedgy, thanks for looking at this critically. I think it is hard to compare pay and retirement as there are so many variables.

#1 Malpractice insurance and health insurance and retirement are expensed unless you are a C-corp, which very few are these days.

I don't have any experience owning a business, so I'm not sure exactly what this means. Do you mean that these expenses aren't usually included as a part of the dentist's taxable income if they own a practice?​

#2- I have an average practice, maybe even smaller than average at about $720k/yr with 55% overhead on a 4-day week. After student and practice loans, my take home has been about $144,000 at 10 years. When those are paid off in 4 years, I will have that extra $80k as income. I also invest about $35,000/yr in my 401K.

I'm impressed with your low overhead too. Even though you have an average or smaller than average practice it sounds like you're doing better than the average private sector general dentist. The salary figure in the table includes all private sector general dentists (owners, associates, contractors, employees, etc). Another advantage to owning your own practice is that you can sell it when you retire, which is a source of retirement income that isn't included in this table.​

#3-I have never seen anyone qualify for a multi-year retention bonus at least until year 6+. This assumes some residency and payback or 4-6 years which will be added on or run concurrent to any prior commitment.

In the PHS you can qualify for the MRB at year zero if you already have the 2-year AEGD/AGPR residency before you join. I don't know what the rules are for the Army, Navy, or Air Force. If the PHS pays for your residency then you aren't eligible for the MRB while you're paying back your obligated service. I think the residencies incur either 2 or 4 years of obligated service.​

 

[Hedgy]

Hedgy, thanks for looking at this critically. I think it is hard to compare pay and retirement as there are so many variables.

I think the Gov't retirement is excellent. Nice to have a guaranteed retirement.

I don't have any experience owning a business, so I'm not sure exactly what this means. Do you mean that these expenses aren't usually included as a part of the dentist's taxable income if they own a practice?

Correct, most dentists are LLCs so liability, healthcare, and retirement are pretax. That may change if the corporate tax rate decreases to 15-20% though. ​

I'm impressed with your low overhead too. Even though you have an average or smaller than average practice it sounds like you're doing better than the average private sector general dentist. The salary figure in the table includes all private sector general dentists (owners, associates, contractors, employees, etc). Another advantage to owning your own practice is that you can sell it when you retire, which is a source of retirement income that isn't included in this table.

Average OH is between 60-65%. Those that have large advertising budgets push more towards 70% OH. ​

In the PHS you can qualify for the MRB at year zero if you already have the 2-year AEGD/AGPR residency before you join. I don't know what the rules are for the Army, Navy, or Air Force. If the PHS pays for your residency then you aren't eligible for the MRB while you're paying back your obligated service. I think the residencies incur either 2 or 4 years of obligated service.

Correct, I think more are doing residencies now, but not sure if they are doing 1 or 2 years. I assume most do a 1 year to get speed up, then move on to practice. In the military, the time in residency runs concurrent with AD obligation (if they get in during that time). More often it seems one does a 1-year AEGD/GPR, 2-3 years of payback, then 2-3 yr residency, then 2-3 yr payback, so it's often 6-8 years before they are MRB eligible. PHS seems to fall in line with that.​

 

[agent2362]

I was lucky enough to pay back my 3 years of ADSO for UoP which was completed the day before I started my OMS residency and thus was able to sign a 25K/year additional bonus which is pretty awesome. Overall, in the longterm I think that even with the multi year retention bonuses it financially more prudent to be in private practice versus military in the longterm especially if you are a specialist. The 2 year AEGD guys have squirreled their way around this to receive comparable MRBs (or it might be exactly the same MRB as specialist), so they are the most common "specialists" to hang around longterm in the military.

Oh and additionally I would edit the table above to notate that O-4 is usually obtained at 6 years of service and O-5 at 12 years. It is very unusual to rank up faster than every 6 years (the exception is from O-5 to O-6)

 

[Steins;Gate]

I think this makes PHS/Gov't look very lucrative compared to private practice. Since I am in private practice, I will give you my take on this:

#1 Malpractice insurance and health insurance and retirement are expensed unless you are a C-corp, which very few are these days.

#2- I have an average practice, maybe even smaller than average at about $720k/yr with 55% overhead on a 4-day week. After student and practice loans, my take home has been about $144,000 at 10 years. When those are paid off in 4 years, I will have that extra $80k as income. I also invest about $35,000/yr in my 401K.

#3-I have never seen anyone qualify for a multi-year retention bonus at least until year 6+. This assumes some residency and payback or 4-6 years which will be added on or run concurrent to any prior commitment.

Great post Hedgy, when you do your calculations, it looks like your net income is 720K*0.45 which is $324K/yr. I'm curious as to how you are taking home $144K and $80K after you pay off student and practice loans and $35K into your 401K as that adds up to about 260K/yr. Have you already factored in tax?

 

[Hedgy]

Great post Hedgy, when you do your calculations, it looks like your net income is 720K*0.45 which is $324K/yr. I'm curious as to how you are taking home $144K and $80K after you pay off student and practice loans and $35K into your 401K as that adds up to about 260K/yr. Have you already factored in tax?[/QUOTE.

Tax not included and gross also does not include deductions for practice purchase (deducted over 25 years) etc, That is the extra amount.

 

[USPHS Dentist]

Oh and additionally I would edit the table above to notate that O-4 is usually obtained at 6 years of service and O-5 at 12 years. It is very unusual to rank up faster than every 6 years (the exception is from O-5 to O-6)

agent 2362,

I don't doubt that those are the average promotion times for the branch of the military you were in, but in the Public Health Service the promotion times in the pay comparison table are realistic.

In the PHS, promotion to O-4 is automatic at 4 years of service. There is no waiting to get promoted, as long as you are in good standing you are promoted at 4 years of service (pretty much to the day). Promotion to O-5 starts at 9 years of service, but it is competitive and not everyone makes it. When you compete for promotion for O-5 and O-6, the promotion list comes out every year in June and most people are promoted on July 1st. Again, no waiting.