Episode 516

The Best Way to Pay Yourself as an Owner Dentist

Host: Gary Takacs | Published Date: December 1, 2021 | Listening Time: 00:51:10

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When you ask a dentist how they pay themselves, they would say they take what is left. Is this the right way to pay yourself as a dentist?

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Gary says a dentist should not just pay themselves what is left as it is deeply flawed.

There are a lot of different models that will help dentists compensate themselves, but in this episode, Gary will share with you a model that I think makes a lot of sense.

Tune in to the episode to find out about this model!

Time Stamps

  • 00:00:25 – Introduction to the episode
  • 00:00:45 – Announcement on the upcoming Masterclass

Today’s Clinical Tip

  • 00:02:21 – How to take home more income in 2022 by Bob Affleck

Coaching In Action

  • 00:09:38 – What’s the usual answer Gary gets when he asks dentists how they pay themselves?
  • 00:12:51 – What is the acronym EBITDA?
  • 00:14:17 – How should a dentist pay himself?
  • 00:15:57 – How do you calculate earning in the EBITDA acronym?
  • 00:17:08 – How much should a dentist doing complex services pay himself?
  • 00:22:02 – What will be the best practice model in 2022 according to Gary?

Q&A Segment

  • 00:31:31 – Question 1 – I have never had much structure to how I pay myself. I simply pay myself what is left over. I am sure there has to be a better way. Your thoughts?
  • 00:33:28 – Question 2 – Gary, on your counsel I have structured my accounting in my practice in the EBITDA model. I am not at the 20% EBITDA goal that you discussed yet. What is your top strategy for increasing EBITDA?
  • 00:40:26 – Question 3 – I have recently added an associate doctor to my practice. I feel like we have an excellent fit. However, her production is lower than we would like it to be. What level of production from an associate do I need to see, before I as the owner earns a profit on the associate production?
  • 00:45:08 – Question 4 – When is the best time to pay myself the earnings part of my compensation?
  • 00:46:32 – Question 5 – Sadly I have experienced associate turnover in the past and I am committed to changing this in the future. What do you think is the best way to attract and retain a quality associate?

Resources

Bob Affleck

Contact Information


Gary Takacs

Gary Takacs Gary became a successful practice owner by purchasing a fixer-upper practice and developing it into a world-class dental practice. He is passionate about sharing his hard-earned insights and experiences with dental practices across the globe.

As a dental practice coach, Gary provides guidance for dental professionals on how to create a healthier practice style that lets them deliver excellent patient care while reducing depending on insurance.

More importantly, Gary’s insights are not just based on theory – as a co-owner of a dental practice, he has first-hand experience in making this transformation from a high-volume and low-fee insurance model to a fee-for-service approach that is more sustainable and promotes a patient-centric and financially healthy dental practice, and he is dedicated to sharing this knowledge with other dental practitioners via the popular Thriving Dentist Show!
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Podcast Assistance by Jodey Smith, Rodecaster Expert
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