The challenges of determining dental associate profitability

In a DrBicuspid.com article, Thomas Climo, PhD, and Jill Nesbitt, both dental practice management consultants, discuss the importance of dental practice owners being able to measure the profitability of dental associates in the practice.

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The first step an owner needs to take is reviewing year-to-date or year-end income statement, divided by location. If the owner has satellite practices with one dentist in each, it is easy for the owner to determine the performance and profitability. However, with large group practices it is almost impossible to parse out individual dentists contributions.

The owner of the dental practice is responsible for the economic success of the entire practice and hence, it is necessary that he or she be able to evaluate the contribution in terms of profits for each individual associate. However, no agreed-upon standard for this evaluation exists as yet, according to the report.

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