Each model has a different payment structure, and it is important to know the models when evaluating a job offer and contract terms.
Here are four common compensation models:
1. Straight salary: Dentists earn a fixed amount for services. May be specified as monthly, weekly or daily in the contract.
2. Salary-plus: Combines base salary with commission based on productivity/gross billings.
3. Straight commission: Pay is based only on fees and revenue generated from the dentist’s services. Uses either total production, adjusted/billable production, or the net amount the practice receives from the dentist’s billings.
4. Net profit: A dentist is compensated on total billings for services provided minus any expenses specified in the contract. Common expenses include lab fees, provider discounts or overhead.
