Clinical dentistry is the scientific application of art to the oral cavity. Through knowledge, training, and experience, practitioners skillfully restore lost tooth structure with the precision of a scientist and the eye of a sculptor. Yet when it comes to running a practice, success is often driven by something more concrete: formulas.
Unlike the artistic demands of clinical care, the business side of dentistry can benefit from simple, proven equations that guide decision-making and enhance performance.
1. Hygiene Scheduling Formula
One of the most practical benchmarks for general practices is this: for every 200 active patients of record, your schedule should include one full day of hygiene per week. Unfortunately, many practices are currently understaffed, making it difficult to accommodate new patients or schedule scaling and root planing in a timely manner. Knowing this ratio can help guide staffing and capacity decisions.
2. The 82% Profit Rule
Once your daily overhead is covered, approximately 82% of every additional dollar produced is profit. In other words, if you plan quadrant care and treat just one or two restorative patients each morning, there’s a good chance your expenses will be paid before lunch—leaving your afternoon revenue to flow straight to the bottom line.
3. Smart Spending Guidelines
When it comes to discretionary spending, consider this simple rule: if a purchase is less than 10% of your monthly collections, it likely won’t disrupt cash flow. For larger investments—like adding an operatory—finance the purchase with a commercial loan. As long as the monthly payment is under 10% of collections, your cash flow should remain stable.
4. Your Daily Break-Even Goal
Knowing your daily production goal—or break-even point—is essential to monitor profitability. Here’s how to calculate it:
Multiply your fixed annual overhead by 118% to account for variable expenses. (Doctor’s salary is included in fixed overhead.)
Divide that total by the number of clinical days per year.
The result is your “magic number”—the amount you must produce each day to stay in the black.
5. Focus on the Top 22 Procedures
According to industry expert Dr. Charles Blair, 90% of a general practice’s production comes from just 22 procedures. Run a productivity report, gather your team, identify those top services, and evaluate how long each one typically takes to complete. Then, refine your scheduling to match your strengths—staying on time and reducing stress throughout the day.
Dentists are trained to deliver exceptional clinical care, but most receive little education in business. By applying these straightforward formulas, you can create a more predictable, productive, and profitable practice.
Mountaintop Moment
“The magic formula that successful businesses have discovered is to treat customers like guests and employees like people.”
— Tom Peters
