Baker Tilly recently released the results of the 2015 dental fee survey to help serve as a practice management tool for dental practices across Wisconsin and Minnesota. In order to make the survey results useful to a broad range of practices, we have found that the average or 50th percentile is a good benchmark for a rural practice – by comparison this would put most of them in the 75th percentile in comparison to their peers. For practices located in larger cities, the 75th percentile seems to be a good benchmark. For practices located in major metropolitan areas, such as Milwaukee or Minneapolis, the 90th percentile may be the best benchmark. We do not believe there is a “one size fits all” approach. Instead, we believe practice patient demographics, surrounding neighborhood, immediate competition, marketing approach, and investment should all be considered as part of the fee setting process.
In addition to properly setting fees, other items that impact practice revenue and profitability are the procedure mix, accurate billing, case acceptance, and new patient recruitment. As a management tool, after the decision to change fees, dental practices should recalculate practice collections using the same procedure mix as the prior year and set a budget accordingly. Fee increases and accurate billing for procedures have a 100% profit margin – there is no change in expenses for the practice.
For more information on this topic, or to learn how Baker Tilly dental practice specialists can help, contact our team.