6 Ways to Lower Your Dental Practice Overhead

Texas cityscape

Regardless of whether or not you’re looking to sell your dental practice, lowering your overhead is always in your best interest. Changes can be thought of from an expense perspective and production point of view. Here, we recommend where to make some smart cuts, big and small.


A change in staffing doesn’t necessarily mean layoffs, but it is an opportunity to evaluate employee productivity and see if there is any duplication of effort or if cuts need to be made since payroll accounts for 28% of your standard overhead costs.


With a constantly fluctuating real estate market, it never hurts to try and renegotiate your lease by researching comparable commercial rentals and examining costs to be covered. Rent should account for 10% or lower of your standard overhead costs.


Just as you would shop around for any personal or professional products, finding the best deal on office and dental supplies can be as easy as buying in bulk or changing suppliers. Combined with lab work, supplies should account for 15% or lower of your standard overhead costs. Using procurement software, such as Method USA, can not only offer real-time pricing so you can make better purchasing decisions, but it will also increase the overall value of your dental practice.

Lab work

Negotiations can even be made with your lab to provide a better pricing schedule, going so far as to examine the clauses that dictate your billing agreements. Combined with supplies, lab work should account for 15% or lower of your standard overhead costs.


Rather than scaling back on your marketing efforts, staying consistent or expanding your reach will only increase production. Still, marketing should only account for 3% of your standard overhead costs.


Increase production by expanding hours and bringing in more services rather than outsourcing treatments, while first making sure the demand is there.

What’s next?

Learn the value of your dental practice, then reach out to the experts at Professional Transition Strategies to see if selling is in your financial future.