Dental Hygiene Revenue Question

I am looking to buy into a practice that I have been associating at and want to review some of the financials myself before meeting with an accountant, but I don't know exactly where to look or possibly interpret. The obvious, to me, are overhead, production, collections, etc. but what about hygiene? Is there a rough percentage of how efficient the hygiene department is (payroll, supplies, versus collection?). Is there information available in book form? Any help would be appreciated. Thanks.

Here are two "statistics" to consider:

1. The hygiene department usually generates 25% of the total practice revenue.

2. Hygiene revenue should be approximately 3 times what you're paying the hygienists.

Does that help?

This post originally appeared on Dentaltown.

Send your questions to Tim Lott, CPA, CVA at tlott@dentalcpas.com

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