Dental practice revenue is a term every dentist knows and understands. What can you do to lower costs, increase dental practice revenue, and also keep your patients happy? It takes commitment to ensure all of the moving parts in the revenue machine work to keep your practice profitable — and more importantly — scale to reach your financial goals. We know that some of the best financial gifts that come from profitability are the ones that allow us to maintain your dental practice and provide necessary care to your patients. Let’s take a look at the numbers you should expect to see as well as the importance of getting as close to reaching them as you can.
What is a good profit margin for a dental practice?
Many practices can anticipate a 40% gross profit margin. Do you know where your practice stands? If it’s higher, you’re doing a fantastic job at mitigating profit loss through effective revenue cycle management, but just how much more can you expect to earn by scaling or doing things differently? If it’s less, the time it takes to commit to future profitability is now in your hands.
How much do dentists make if they own their own practice?
While dental industry consolidation is on the rise, the majority of dental practices are still privately owned. If you’re a sole practitioner or work with a small number of other doctors, you know exactly how important financial processes are to your revenue cycle management. Between patient and dental billing, each step in these processes must be consistently looked after in order to provide consistent cash flow. Your practice will fall behind on denied claims or over 90 collection ratios if consistent processes are not implemented. This may cause you to be part of the 70% of dentists that lose up to 9% in collectible revenue each yea, which can really add up over time.
Is dentistry a profitable business?
Among many sectors in the medical field, dentistry stands out as a consistent income provider for practitioners, simply due to the fact that the mouth requires semi-annual or annual cleanings at the minimum, with other treatments coming into play for age or disease-related reasons. Typically, younger children are seen more often as their teeth come in and grow, especially if orthodontic treatment is necessary. Dentists enjoy a healthy stream of profitability as long as their revenue cycle management is sustained with best practices and solutions for emergent financial issues. Are all of these aspects of your practice being sustained and optimized?
- Dental billing claims processing and insurance collection
- Patient collections and copays
- Dental-practice accounting and bookkeeping to maximize deductions and credits
Of course, preserving profitability isn’t all about simply lowering costs. We also need to maximize the efficiency of our office hours to get more done in less time, leading to higher ROI throughout the entire practice. If your office manager is overwhelmed with scheduling, dental billing, CDT code changes, and insurance claim follow-up, where does that gift of increased revenue come from?
Give yourself the gift of increased dental practice revenue
The best gifts can be the ones that we give ourselves, and for dentists across the country, outsourcing your dental billing has never been easier. Give yourself the gift of increased dental practice revenue by scheduling a no-obligation consultation today. eAssist’s dental billing platform can help keep your over 90 near zero, as well as help your insurance claims get paid faster with consistent processes. Start your journey with the nation’s leading platform for dental billing solutions by CLICKING HERE.
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