The Profitability Formula

You have more patients, your collections are up, and you’re busier than ever. So where’s all the extra money? Watch this short video to learn where it might be hiding and how to improve your profitability.


Hi, I’m Reese Harper, CEO of Dentist Advisors.

Let’s talk about everyone’s favorite word: profitability.

More profits are better, right? So here’s an easy way to keep your overhead in check and make more: track your Profitability Rate. Your Profitability Rate is the percentage of your collections that you keep after you’ve subtracted all your overhead.

Why should you be tracking it? Because your Profitability Rate should increase as your collections increase. If patients are piling in, and collections are up, but you’re not seeing any additional profits, you’re overhead is too high.

Many dentists and specialists have a tendency to let their payroll, marketing, and consulting expenses get out of line as time passes. Before you know it, you’re taking home less, even though you’re collecting twice as much you did before.

Yes, you should invest in your practice – but you should be seeing more profits from your collections, not just more overhead.

The solution is easy: dig into the details of your P&L with your CPA, or a financial advisor. Then you get the luxury of calling that extra money what you really want it to be: profit.

If you’d like a sample practice budget, and some tips on what your overhead should look like, schedule a free consultation with one of our advisors today.

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