Dental Hyigienists and Dentists: Financial Considerations

Turning a Profit on Your Dental Hygienist Investment
Editorial by Jim Du Molin

Once again, I’m putting my capitalist hat on and analyzing the economics of dental hygienists. (I started by discussing the economic aspects, and last week I talked about how you can turn a profit.) The dentist needs to begin by preparing an operatory for a hygienist, then actually hiring one. Done properly, the dentist will then start earning a healthy chunk of passive income. At this point, many hygienists may view the dentist as a fat capitalist who is getting rich off the sweat of their labor. They fail to recognize the cost of capital and risk.

As a capitalist, your risk is the cost of equipping the hygiene operatory. If you have to add a staff member in administration to schedule hygiene, that cost would also have to be considered.

In our example, we’ll assume that your cost is a $554-per-month loan payment on equipment for the hygiene operatory. When we subtract this cost from the previous increase in profit, the net return is $5,799 per month, or about ten times your risk. As the number of hygiene days per month increases, your return on investment continues to grow. And that’s what American Capitalism is all about.

Profit on Hygiene Investment

Number of hygiene days per month 4 8 12
Profit on hygiene production* $1,169 $2,338 $3,506
Profit on dentist’s production* $5,184 $5,184 $5,184
Less: capital investment – $554 – $554 – $554
Total Net Profit per Month $5,799 $6,968 $8,136
* before indirect overhead costs

If you’ve got comments on the economics of hiring hygienists, feel free to post them below!

About Jim Du Molin

+Jim Du Molin is a leading Internet marketing expert for dentists in North America. He has helped hundreds of doctors make more money in their practices using his proven Internet marketing techniques.

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