Dental Practice Profits / 01/12/22 / 4 Min Read

Reduce Overhead And Maximize Your Dental Practice Profits

Increasing dental practice profits through sufficient revenue cycling

Your practice depends on a sufficient understanding of how its revenue cycle works. With so many moving pieces, it can be difficult to find the specific pain points that keep you from experiencing true profitability over the long term. Typically, your general profit margin will depend on your overhead costs, which can and should be measured on a daily, weekly, monthly, and quarterly basis to ensure accuracy. Knowing the numbers isn’t just about looking at a spreadsheet every few weeks; it takes time to analyze spending habits to reduce overhead and maximize dental practice profits. 

What is the typical profit margin for a dentist office?

Dentists can usually expect 30-35% average profit margins throughout the scope of their practice. However, this average doesn’t need to be the last word in terms of profit. By further exploring the costs of overhead and general practice management, you can identify weak spots in your operating procedures or equipment financing. Taking a look at how much you’re spending in a few key areas can help get you started on what needs to be changed and what’s working. Without a standard operating procedure for your finances, the chances of your money slipping away becomes ever greater over time. No one enjoys poring over the numbers every day, but it’s crucial to do so if you find yourself at a financial impasse with seemingly nowhere to go.

What is a good percentage for overhead?

Whether you’re a specialty or general practitioner, overhead costs can vary greatly but should remain within an average spread depending on how your practice operates and your business costs add up.

EFTs are a great place to start when it comes to figuring out where your money is and where it’s going. If an insurance provider applies funds incorrectly, that means chunks of money and time lost struggling to recoup the original costs. EFTs are also a great way to reduce embezzlement risk by offering more accurate numbers that can’t be fixed. This way, you’re saving money by seeing everything that’s already owed to you as it comes in versus sometime after. It’s important to remember that if you’re saving money, you’re buying time. Knowing what your time is worth is the first step in appreciating excessive overhead costs, as well as the key to eliminating or reducing them for the benefit of your dental practice profits.

How can I reduce my dental practice overhead?

The first step in reducing overhead cost is knowing that almost everything you buy can be negotiated, whether you purchase from a distributor or direct. Dental group purchasing organizations, or GPOs, are your first line of defense against excessive overhead. Most likely, your practice is already using one for office and medical supplies. GPOs help your practice negotiate prices through third-party suppliers or even on your behalf; everything from your lease, equipment, utilities, and lab fees. Not having to worry about constantly checking in with suppliers has its benefits, which means you’ll be getting all the profits.

Coordinating with a dental group purchasing organization (GPO), like eAssist’s Buying Power

To fully appreciate the level of overhead savings your practice may achieve, eAssist now offers true Buying Power. Buying Power is a GPO that was created by dentists for dentists, using industry-leading expertise in product purchasing and long-term profitability through a reduction of overhead. We can potentially help you to keep your overhead under that 50% mark by offering the products and services you love at DSO-style prices. Plus, enjoy exclusive access to discounts, rebates, and special offers not available to other dentists. Coordinate your path to dental practice profits by getting started with Buying Power today, call toll-free at (801-609-9805) or email us at