What are typical percentages for dental production and collections?

I’ve been practicing for one year, what should I expect?

I’ve heard some are getting as high as 40% of prodcution and others as low as 25%.

I’ve been offered 30% production where I pay half the lab bill, x-rays and exams are not included as production. It seems fairly reasonable any thoughts?

The “typical” ranges I see are:

25-30% of PRODUCTION


Without or without lab fees? How do you see that getting handled?
that varies. if the owner wants the assoc to be responsible for lab fees or a portion thereof, then the %’s noted above will be at the higher end of the ranges. if the owner is NOT concerned about making the assoc responsible for lab fees, the %’s used are closer to the lower end of the ranges noted above.more & more i’m suggesting that owners keep it simple & pay 100% of the lab and simply offer a % of revenue to their assoc w/o a lab cost charge . the owner should monitor the associates lab use to make sure the usage is kept in line with their “standards” and if need be, add some language that enables the owner to adjust assoc comp in the future IF lab gets outside specified norms.for example, if the practice history shows that lab costs as a % of doctors prod runs 12%, the owner can “charge” the assoc for lab costs that exceed say 15% of their production. i think you need to allow some cushion. if this is written into the associates employment agreement than both are completely aware of the need to control the lab & more importantly, it keeps the math simple to avoid the math errors the result in the associates believing they were cheated.

Send your questions to Tim Lott, CPA, CVA at tlott@dentalcpas.com

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