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Advanced Practice Management
7101 York Avenue South, Suite 300 Edina, Minnesota 55435-4407
Contact Us Today (952) 921-3360

We are pleased to present to you a copy of our biennial survey.  The information shown below and contained on the attached pages is provided to you strictly as a management tool.  Its main purpose is to allow you to compare your practice with the averages and ranges of our sample and to provide some insight into the trends occurring in your profession.  It is important to note that formalized statistical sampling was not undertaken and therefore, the results should not be assumed to be statistically valid.

The line entitled “Net Income before owner compensation – Income Tax Basis” on Schedule 1 constitutes the total amount available for remunerating the dentists.  We have summarized how this “Net Income before owner compensation – Income Tax Basis” was allocated between different owner compensation and benefits as follows:

Range
High Low Average
Self employment income after adjustments show below, or salary taken 660,443 57,784 226,892
Owner/officer retirement plan contributions 56,500 0 11,067
Income tax basis profit (loss) earned by corporations 523,048 (46,803) 34,320
Insurance preminus and medical expenses paid on behalf of the owner/officer 30,884 0 8,570
Owner/officer payrool taxes paid or 1/2 self employment tax 18,036 4,962 10,581
Income Tax Basis 291,431

The range columns on the prior page and on Schedule 1 present the highest and lowest amount for that particular line item. The range columns are not meant to total or show cumulative or net figures.

The average columns on Schedules 1 and 2 present the average amount for that particular line item from survey participants. The average columns add up to the “Total Expenses Disbursed” and the “Net Income Before Owner Compensation – Income Tax Basis” figures.

The percentage (%) column on Schedule 1 adds up as described in the preceding paragraph.  However, the % change column on Schedule 2 is not meant to total or show cumulative or net figures.  This column represents the annualized percentage increase or decrease of that particular line item over the two year period.

It is important to note that financial information from multi-owner dental practices and from practices that utilize associate dentists has been segregated into information that represents the activity of each doctor.  Therefore, financial information from a sole proprietor using a part-time associate will show activity from the full time proprietor.  Collections, expenses and contribution to profit for the associate are not included.  By presenting information by practitioner in this manner, we are able to focus on statistics that make a better comparison across practices.

We would also like to highlight the following items:

  1. “Total Expenses Disbursed” and “Net Income Before Owner Compensation – Income Tax Basis” percentages on Schedule 1 include activity that may be regarded as investing or financing as opposed to operating expenses.  These expenses may have practice acquisition overtones that do not necessarily compare to practices that have been operating for a longer term. To determine the adjusted “Total Expenses Disbursed” percentage, subtract “Covenants, contracts & agreements” percentage and some or all of the “Interest paid” percentage.
  2. Depreciation, amortization & leased equipment” expense increased from 2012 to 2014 due to office updating and expansion and taking advantage of expanded first-year write-off and bonus depreciation laws.  Depreciation and amortization may also have practice acquisition overtones.  As a result, these expenses may vary greatly from practice to practice.  Consider adjusting the “Total Expenses Disbursed” percentage to compare expenses from operations.
  3. “Office and computer expenses” increased from 2012 to 2014 due to the investment practices are making in computers and the rapid changes in technology.
  4. ”Laundry and uniforms” costs are declining since fewer practices are incurring these costs. It is not likely that laundry and uniforms will be tracked separately in KDV’s dental statistics after 2014.

Dental Practitioners — High and Low Ranges and Averages for years ending by March 31, 2014

 

Range
High Low Average %
Fees Received 2,329,615 241,759 831,527 100%
Salaries – general 184,961 0 59,817 7.2%
Salaries – assistants 180,730 0 63,719 7.7%
Salaries – hygienists 398,814 0 99,587 12.0%
Payroll taxes – staff 57,093 2,765 19,146 2.3%
Staff retirement plans 28,102 0 6,168 0.7%
Employee benefit plans 56,483 0 7,748 0.9%
Staff meetings and parties 20,213 0 2,674 0.3%
Professional supplies 198,964 6,585 62,148 7.5%
Laboratory fees 190,889 4,710 54,536 6.6%
Occupancy expense
118,643 11,486 50,382 6.1%
Repairs, decorate and service contracts
23,783 0 5,829 0.7%
Depreciation, amortization and leased equipment 119,295 0 24,729 2.9%
Interest paid 47,518 0 7,034 0.8%
Insurance – business 30,728 1,557 6,091 0.7%
Telephone 13,079 488 4,391 0.5%
Office and computer expenses 60,204 1,410 16,58 1.6%
Promotion and advertising 63,001 100 13,939 1.7%
Meetings and seminars 31,975 0 4,736 0.5%
Professional, banking and other fees 90,207 2,650 20,148 2.4%
Dues, licenses and subscriptions 8,651 405 3,062 0.4%
Auto and employee travel 8,890 0 1,403 0.2%
Laundry and uniforms 5,188 0 812 0.2%
Covenants, contracts and agreements 68,664 0 5,413 0.7%
Total Expenses Disbursed 540,096 65.0%
Net Income on an Income Tax Basis 291,431 35.0%

*Please read the explanatory notes in the cover letter regarding possible adjustments to the above figures.

Dental Practitioners — Comparison of 2014 and 2012 Averages

 

2014
Average
2012
Average
Increase (Decrease) Annualized
% Change
Fees Received 831,527 771,183 60,344 3.8%
Salaries – general 59,817 60,105 (288) -0.2%
Salaries – assistants 63,719 56,090 7,629 6.6%
Salaries – hygienists 99,587 88,006 11,581 6.4%
Payroll taxes – staff 19,146 17,906 1,240 3.4%
Staff retirement plans 6,168 6,393 (225) -1.8%
Employee benefit plans  7,748  8,546  (798) -4.8%
Staff meetings and parties 2,674  1,792  882  22.2%
Professional supplies  62,148  55,666  6,482  5.7%
Laboratory fees  54,536  54,674  (138)  -0.1%
Occupancy expense  50,382  50,400  (18) 0.0%
Repairs, decorate and service
contracts
 5,829  5,185  644  6.0%
Depreciation, amortization and
leased equipment
 24,729  18,724  6,005  14.9%
Interest paid 7,034  7,923  (889)  -5.8%
Insurance – business  6,091  5,204  887  8.2%
Telephone  4,391  3,946  445  5.5%
Office and computer expenses 16,582  13,918  2,664  9.2%
Promotion and advertising 13,939  13,899  40  0.1%
Meetings and seminars  4,736 3,642  1,094  14.0%
Professional, banking and other fees 20,148  16,860  3,288  9.3%
Dues, licenses and subscriptions  3,062  2,630  432  7.9%
Auto and employee travel 1,403  1,772  (369)  -11.0%
Laundry and uniforms  812  888  (76)  -4.4%
Covenants, contracts and agreements  5,413  5,173  240  2.3%
Total Expenses Disbursed  540,096  499,342  40,754  4.0%
Net Income Before Owners Compensation – Income Tax Basis 291,431  271,841  19,590  3.5%

*Please read the explanatory notes in the cover letter regarding possible adjustments to the above figures.