Bankers Healthcare Group (read the DSO News interview with their Chief Credit Officer) recently conducted a nationwide survey of more than 400 dental professionals – encompassing both owners and associates – to ascertain their financial decision-making and how these professionals are investing to maintain, as well as grow their practices.
- 76% of respondents play an active role in decision making in the practice, regardless of their title. For practice owners, 60% make financial decisions on their own, with 27% making them jointly. The remaining leave all financial decision-making to others. Interestingly, those over the age of 35 are more likely to make these decisions solely, while those under 35 prefer to leave such decisions to others.
- Surveyed practice owners pegged payroll and benefits as their largest expense. 47% said they spend $100,000-$299,999 per year on payroll and benefits and 22% responded that they spend $300,000-$499,999 per year on payroll and benefits.
- A quarter of respondents replied that they hire new office staff every two to three years, while 22% hire annually.
- Investing in new equipment yearly is a priority for 20% of respondents.
- 32% of respondents reported spending more than $30,000 per year on dental supplies.
- 39% of respondents reported spending more than $30,000 per year on their office’s rent or mortgage.
- 29% of respondents reported spending more than $30,000 per year on lab fees.
- Interestingly, 43% of respondents reported spending less than $3,000 per year on marketing, which is much less than the average DSO affiliated practice spends.
- 44% of respondents have invested in their practice by taking out a commercial loan and 40% have taken out a personal loan. For this lending, 50% of it was to start or open a practice, 41% utilized it as working capital, and 32% used the funds to finance an expansion or equipment.