To keep a dental practice attractive, competitive, and technology-driven, a general rule of thumb is to reinvest 5% to 10% of annual gross revenue each year. However, depending on your goals and competitive landscape, some high-growth practices may reinvest even more aggressively.
🧮 Typical Reinvestment Breakdown by Category
Assuming a dental office earns $1 million in annual revenue, here’s a realistic reinvestment structure:
Category | Suggested % of Revenue | Dollar Amount (on $1M revenue) | Notes |
---|---|---|---|
Technology & Equipment | 3–6% | $30,000–$60,000 | Includes CBCT, scanners, CAD/CAM, AI software (like Overjet), etc. |
Facility Upgrades & Maintenance | 1–2% | $20,000–$40,000 | Flooring, lighting, cabinetry, new chairs, A/V for ops. |
📈 Key Technology Investments That Patients Notice
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Digital scanners (iTero, Primescan, or Medit)
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3D CBCT imaging
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AI diagnostic tools (like Overjet)
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Paperless forms + online scheduling
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Comfort amenities (TVs, noise-canceling headphones, new dental chairs)
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Same-day dentistry tools (like PrimeScan)
🛠️ Warning Signs You're Underinvesting
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Outdated dental equipment or software
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Declining new patient growth
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Negative reviews mentioning outdated tech
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Difficulty recruiting top-tier dental professionals
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Falling behind neighboring practices or DSOs
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