Are you a dental professional facing the all-too-common dilemma: “I’m working harder, but taking home less,” or perhaps hearing your team’s plea for raises with no room in the budget?
Your practice profitability may be hampered by a significant factor: overhead costs. In Utah, dental practices bear a hefty $500 hourly overhead cost, substantially influencing your ability to thrive financially.
The Profitability Challenge: Unveiling the Numbers
Consider the numbers for common dental procedures, like composite fills and all-porcelain crowns. The average PPO reimbursement for a composite fill is $120. When you factor in the $500 overhead cost, scheduling three 2-surface posterior composites within an hour would lead to a loss of $140, even with a hygiene appointment in tandem.
The situation isn’t much brighter with all-porcelain crowns. With a $720 PPO reimbursement rate and a build-up cost of $105, it may seem promising. However, your two-hour procedure carries a $1000 overhead, leaving you $175 in the red.