Financial Strategy
Here's what good looks like: 75% of your accounts receivable sitting in the 0-30 day bucket, 15% in 31-60, no more than 10% past 60 days, and roughly 3% in 90+. Total AR should equal about one month of production, and you should be collecting 98 cents of
Insurance
One general practice added up its PPO discounts and found they were eating more than 15% of total gross production, the equivalent of working about a month and a half a year for free, according to Dental Economics. Another practice in the same reporting dropped its networks badly and watched
Insurance
A practice billing $422,500 across three routine codes deposits $235,075. The missing $187,425 isn't theft, bad billing, or a front-desk problem: it's the contracts the owner signed, and most owners can't say which contract is responsible for which share of it.
Financial Strategy
If your PPO write-offs are running above 40% of gross production, you have a problem worth solving this quarter. Above 50%, you're running a practice whose main product is discounted dentistry and whose main customer is an insurance company. Below 30%, you're either lightly contracted or
Industry Trends
A $1.4 million general practice came to market this year at $1.68 million with a broker's one-page "cash flow" summary showing $420,000 of owner benefit. Run the same practice through an honest recast and the real adjusted EBITDA is $150,000, which means
Dental Practice
LendingClub, Sunbit, Affirm, and 12 other fintech platforms all launched or expanded dental lending in ...
Insurance
Teledentistry as a cash-only revenue stream failed because insurance companies limited reimbursement and patients expected coverage. The margin math doesn't work.
Dental Economics
Most practices run overhead at 58-60%. If you're at 62%, you're leaving $150K-250K annually on the table through overstaffing and waste.
Dental Economics
Your supply invoice jumped from $6,200 to $6,950 this month. Same products.
Dental Economics
One percentage point of EBITDA margin on a million-dollar practice is worth roughly $50,000 the day you sell. Most owners will spend a year fighting a $9,000 supply contract and never touch the ten points of margin sitting in their fee schedule. So here is our thesis, and
Practice Management
A Four-Point Swing on $700,000 Is $27,937 of Profit Move your lab bill from 12% of collections to 8% on a $700,000 practice and you keep an extra $27,937 a year, which is roughly what a full-time hygienist costs in most markets. Now the uncomfortable part:
Dental Economics
Six points of overhead doesn't sound like a crisis. On an $800,000 practice it compounds to $1.92 million of income you never see over 30 years, according to the Academy of General Dentistry, which puts the recommended overhead target for general practice at 59% of collections.