A downwards trend in Dental Practice profitability make worrying reading.
The economic performance of Dental practices is not improving according to a recent report. Dental practice profitability would overall seem to have shown a slight decline in the financial report for the year ending April 2016 compared to 2015.
This information comes to light in the recently published benchmarking report of the National Association of Specialist Dental Accountants and Lawyers (NASDAL). Although the picture is mixed, it is not good news for dental practices as a whole. According to Nick Hancock, dental specialist with accountants Albert Goodman in Taunton, practices have a greater need than ever to be aware of their financial performance and to be on top of the latest developments.
The survey of 650 Principles and limited companies shows, for practices that are solely for NHS patients, there was an increase in profitability for practice owners with one associate dentist of less than 4% from £129,000 to £134,000. But for practices that are for private patients there was a drop from £140,000 to £134,000. Mixed patient practices seem to be performing even worse with a profitability figure of only £128,000 for the year ended April 2016.
The figures for associates in isolation look similarly weak with profitability dropping from £68,000 to £67,000 in the year. Nick feels that this is a result practice owners seeing associates as an avenue for squeezing profitability which are coming under attack in a variety of ways. One increasing cost is the burden of compliance which is both eroding profitability and consuming valuable dental time in dealing with paperwork rather than seeing patients.
Nick concludes, “The figures are worrying, the trend is not positive. It illustrates the need to have a specialist dental accountant who can not only monitor what is happening to practices economic performance but can also make suggestions as to a positive way forward.”
For more information, contact Nick Hancock on 01823 286096
or e-mail firstname.lastname@example.org