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
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
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!