“And The Real Income Is…..” Tips on How to Reduce Your Dental Practice Costs

by Dr. Ron Arndt

Cash flow – or lack thereof – stresses out all dentists at one point or another. In addition to my D.D.S, I earned an M.B.A. because I knew I needed to learn more about the in’s and out’s of running a business. Because of this advanced training, my practice operated in the top 5% nationwide. That combination of education and experience has given me the insights into how to operate a dental practice like a real, profitable business.

The first step to higher profits and reduced costs is to realize that the cash that comes in from a treatment – say, a filling – is not your income, nor is it your profit. Any income from treatments that comes into your practice must first pass through two bottlenecks – Overhead and Taxes. The remaining balance is what becomes the practice’s income or revenue. I recommend talking to your CPA or accounting professional about how to reduce your tax payments and I will share some ideas on how to reduce your overhead.

  1. Labor: While I encourage you to pay your staff a fair and attractive wage, make sure that you are not increasing labor costs by high turnover or lots of downtime. Run your practice like a well oiled machine to reduce time spent in the break room, and show your best employees how much you value them to reduce turnover, and thus hiring costs. (Note: See my previous blog posts about how to keep employees happy – HERE)
  2. Analyze Your Expenses: We can’t always cut out an item completely, but we can certainly review it. For example, what do you pay to process credit cards for payment? Merchant processing and credit card fees can be simply ridiculous.
  3. Reassess Your Offerings Annually: Look at the treatments and services that you offer in relation to how profitable they are. It may be necessary to eliminate treatments that are simply costing too much to perform.

In addition to being an excellent dentist, remember that you are a business owner as well.

PS – I would love if you would join me for my online Facebook Book Signing! to register for this event: It’s FREE and FUN!

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– Tuesday, November 23rd from 10am to 1pm EST and 6pm to 8pm EST. It’s my birthday so let’s make this event a celebration of living.


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– on

What – Join me online on my Facebook Page and chat about my book “Killing the Practice before it Kills You”. This Online Book signing will allow you to talk to me directly on Facebook – ask questions about the book and how my personal experiences may help you avoid serous health issues. Should you decide to purchase a copy, I will sign it just for you. Tell me what you would like me to inscribe in your copy and before it is shipped it will be signed by me personally.

Killing The Practice Before It Kills You is not just a book for Dentists. It’s applicable to Small Business Owners, Managers and Health Care Professionals. The experiences I have learned and share in my book can be applied to a variety of business practices. If you own your own practice, I encourage you to consider this book.

If you are unable to be with me, visit my site and download Chapter 4 for FREE by going to .

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