Tax extenders! They have been in the news every year since the expiration of the Bush tax cuts and various other tax and economic stimulus packages. Without the passage of tax extenders in recent years, dentists would have had higher taxes. These temporary tax provisions expired at the end of 2014 but, as expected, new tax extender legislation has been passed.
After a death, the transition from the seller’s side is a very emotional, disheartening and financially upsetting circumstance. The spouse of the deceased dentist was probably used to a very solid financial perspective and many times did not know what was occurring in the dental practice.
By using the techniques that I outlined in my book Grow Your Dental Practice with Wine and Cheese, I saw incredible growth in my practice. I sold over 950 plans over a two year period. Between the plans themselves and additional expenditures from plan members during those two years, I earned an additional 1.49 million dollars. My receipts grew by 45 percent a year for two years running. That’s an incredible rate of growth, and I only spent $130 and one hour a month to get it.
Billions of dollars in dental insurance benefits are left unused every year. These benefits can be used for both general maintenance care as well as dental procedures, like root canals or emergency procedures. According to Forbes, only three percent of patients use all of their dental benefits annually, indicating that there is a significant dollar amount of benefits left untapped at the end of December.
There is a list of examples that will be addressed to explain the importance of compensation studies for the dental practice. Just like the importance of a written agreement when two or more partners exist in a dental practice to detail the role of each partner, among other things, compensation can become a disagreeable topic when the focus is after a dental practice is in full operating mode.
Dental technology and the material sciences are advancing at a rate never before experienced by the dental industry. It is difficult, if not impossible, for the average practitioner to understand and appreciate all the new “stuff” that has been developed and introduced to dentistry over the past 10 years. Things that not too long ago seemed like science fiction have now become reality.