Dental Practices – Is Having More than One Profitable?

Recently I was interviewed by Dr. Mark Costes on the Dentalpreneur podcast. We talked about having more than one dental practices and how it can be profitable.

Dental Practices
Dr. Costes and I talk about our many different projects that we are currently undertaking. I will also talk about how the influence of our Mastermind meeting over the past year have gotten me to think about purchasing another practice. We will talk about when is a good time to expand, where and how really to become an owner of multiple dental practices. We share an in depth view of how we find, research and all of the purchasing techniques you can use to help you along the way.

Click below to play the podcast:

In this episode you’ll hear:

  • How to determine if you are ready to be an owner of multiple dental practices
  • Why the reputation of a practice for sale should be considered
  • How to find the creative deals in practice purchases
  • How a non-dentist can own all or part of a dental office
  • Weighing the good and the bad of purchasing a distressed practice
  • Why due diligence is key to a successful practice purchase

Special thanks to Dr. Mark Costes for letting me share my expertise on the Dentalpreneur Podcast show.

Sincerely,
Dr. Aaron Nicholas


2 Responses to “ Dental Practices – Is Having More than One Profitable? ”

  1. Aaron Nicholas says:

    HI Carrie,

    Sorry I’m so late in getting back to you but, hopefully the response will be worth it.
    In general, there is only so much of you to go around. So if you as a single doc are practicing out of two offices, you are paying two overheads. The fixed overhead doesn’t change month to month or with useage. Think rent, phone and staff. You have to pay them whether someone comes to see you or not. Variable overhead does change. Things like lab bills, supplies and to some extent staff.
    So you can only produce so much but are paying overhead times 2.
    Now if you have an associate, you have 2 docs paying for the two overheads. And hopefully the practice is being run well enough that there is some profit left over after you pay the associate.
    So scenario #1 is pretty unprofitable and and only increases your debt.
    Scenario #2 should be profitable and decrease your debt over time.
    The wild card is that in scenario #2 you need to be running the office efficiently. Think 60% overhead or less. So if you are paying the associate 30% there is still a 10% profit margin for you to take home.
    Don’t let the average dentist overhead of 68% – 75% keep you from reaching for more. It can be done and is being done by many docs.
    If you want to discuss this a bit, feel free to contact me directly at anicholasdds@gmail.com

  2. Carrie K. says:

    I would like how you explain how having more than one dental practice could lead more profits but it can also lead to more debt. Thanks for sharing

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