What is the average revenue for a general dental practice

[Yoda23]

I have been reading a few threads/posts about owning a dental practice. I think the average is $750k revenue with 60% overhead. So owner would take home about $300k? Does this seem reasonable for a general practice (1 dentist, 2 assistants, 1 front desk)?

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[deleted659902]

I have been reading a few threads/posts about owning a dental practice. I think the average is $750k revenue with 60% overhead. So owner would take home about $300k? Does this seem reasonable for a general practice (1 dentist, 2 assistants, 1 front desk)?

The average overhead is higher than 60%, closer to 70%. 60% is ideal. At the beginning stages of a practice, it's naturally higher due to practice loan obligations, slow speed with procedures, and limited scope of practice. Once loans are paid off and speed increases along with expanded services, the overhead naturally comes down. A more realistic take-home would be around 200k, not 300k, working four days a week. Keep in mind that there is so much variation to how you can set up a practice and hence how much you can make. This in my view renders average figures not very useful. Sky really is the ceiling though. As a small business owner, you can make as little or as much as you want. Also, don't forget hygienists.

If you want some concrete numbers, I believe ADA regularly publishes average net income of general practice in the US based on surveys. Google it.

 

[Steins;Gate]

In Canada, revenue is around the same, maybe slightly higher. Average EBITDA (incl addbacks) is about 40-45% of revenue. So probably around 300k net on average.

 

[TherealnorthOMFS]

In Canada, revenue is around the same, maybe slightly higher. Average EBITDA (incl addbacks) is about 40-45% of revenue. So probably around 300k net on average.

300k CAD= 230K USD. If you want to win, live in windsor and work in Detroit lmao.

 

[setdoc7]

I am not sure any figures you see in almost any journal or online site will give you any insight into what a GP earns. The model is different for everyone, and locations plays a big factor. To be perfectly frank, I would not reveal any financial info to anyone other than my accountant. What for?

 

[Yoda23]

The average overhead is higher than 60%, closer to 70%. 60% is ideal. At the beginning stages of a practice, it's naturally higher due to practice loan obligations, slow speed with procedures, and limited scope of practice. Once loans are paid off and speed increases along with expanded services, the overhead naturally comes down. A more realistic take-home would be around 200k, not 300k, working four days a week. Keep in mind that there is so much variation to how you can set up a practice and hence how much you can make. This in my view renders average figures not very useful. Sky really is the ceiling though. As a small business owner, you can make as little or as much as you want. Also, don't forget hygienists.

If you want some concrete numbers, I believe ADA regularly publishes average net income of general practice in the US based on surveys. Google it.

Thanks for the info. i read older sdn threads, ada and dental town ads for practices for sale. It gave me a general idea

 

[Yoda23]

I am not sure any figures you see in almost any journal or online site will give you any insight into what a GP earns. The model is different for everyone, and locations plays a big factor. To be perfectly frank, I would not reveal any financial info to anyone other than my accountant. What for?

To be frank, this is a general question that requires only general answers. no one is asking for highly specific numbers. just like how a thread was started on salaries for recent dental graduates where many dentists gave general figures on what to expect and no one gave his/her financial info

 

[doktorinprogres]

So the ADA has some data which we will still take with a grain of salt but it's a start.
https://www.ada.org/~/media/ADA/Science and Research/HPI/Files/HPIData_SDPI_2016.xlsx?la=en

Table 13: Practice Expenses per Dentist (Excluding Shareholder Salaries) for Owner Dentists in Private Practice, 2016
-based on 506 responses the median practice expenses for a solo GP = 380,000

Table 5: Gross Billings Per Dentist for Owner Dentists in Private Practice, 2016
-based on 553 responses the median billings for solo GP = 620,000

That works out to a 61.3% overhead.

Things to be aware of:

1. The overall response rate was 14% (im assuming this was both gp and specialist)
2. The survey was sent to 11,160 GP
3. Numbers were self-reported
4. All the pertinent numbers move around:

I think simple math with the billings and expenses above give you an approximate
lower bound of a value I'll call net-benefit to the owner.

But, did the owners report billings as adjusted production? collections?

Do the owners count their car loan, phone bill, CE expenses etc as part of practice expenses?

Is the payment on the practice loan and/or building loan included as practice expenses?
To be sure they are expenses in the sense that your take-home is lower but also
you're gaining equity if you own the building and definitely by owning the practice.

Did the owners' accountant try and include as many expenses as possible so that less
income gets reported for tax purposes?

 

[webcrest]

General dentists can provide amalgam and composite fillings, teeth cleanings, cosmetic dentistry, root canals, sealants, oral surgery, gum disease treatment, TMJ therapy, pediatric dentistry, orthodontics, tobacco cessation and nutrition counseling, crowns and bridges, dentures, and dental implants, So due increasing their demand approximately average annual revenue per office is about $500,000, and average net income for dentists is $130,000.

 

[DMDDDSHopeful]

General dentists can provide amalgam and composite fillings, teeth cleanings, cosmetic dentistry, root canals, sealants, oral surgery, gum disease treatment, TMJ therapy, pediatric dentistry, orthodontics, tobacco cessation and nutrition counseling, crowns and bridges, dentures, and dental implants, So due increasing their demand approximately average annual revenue per office is about $500,000, and average net income for dentists is $130,000.

Where are you getting those numbers from?

 

[Cold Front]

Practing owner dentist here, who has a lot of practicing owner dentist friends...

You can’t just look at practice revenue and overhead without taking into account the following factors:

1. Location: NY or CA versus TX or MN. Also, Urban versus rural. The more rural the practice is, specially in fly over states, the higher revenue and the lower the overhead. Payroll, rent, and so on are lower in poorer states and their rural counties, thus very low overhead.

2. The dentist: A practice revenue is based on what procedures the dentist performs. I do all my molar endos in-house, where a lot of my GP friends refer them out. Some dentists do implants and see a lot of pediatrics cases than others. Also, some dentists work 6 days, others work 3 days (like myself), which effects practice revenues and overhead. Also, older dentists work slower in general and have light schedules, while others are the opposite.

3. Insurances: Some practices are medicaid heavy, others are all fee for service and CareCredit, and some are just PPOs, or a mixture of all the above. If a dentist worked in all these different offices and did the exact same procedures, the revenue from each office would be different.

There are other factors, but the above 3 are key to knowing how practice revenues and overhead are considered.

 

[InformMe123]

What would the average revenue be for a bread and butter PPO GP practice in a suburb if i wanted to be specific

 

[OPAL123]

The average revenue generated by a general practice nationally is approximately $525,000, and the average income for that office is $175,000. $175,000/$525,000 =.3333. Therefore, one-third of gross income equals net annual income.

 

[setdoc7]

All of this data is at best a gross estimate, as even the ADA survey is flawed by the tiny sample size. Dentists, like any other professional, are not likely to publicize their income, for a variety of good reasons, none of which need to be discussed here.