๐Ÿ“Š
PlainSight โ€” Insightful Actions
Home ยท Guides ยท Handbooks ยท Dental practice

๐Ÿฆท Starting or buying a dental practice

Why collections matter more than production, and what hygiene really does for a practice.

What the market is worth

US dentists
$196.1B2026 market size (IBISWorld)
Two routes in
Buy or startacquiring an existing practice buys patients; starting buys freedom
The number that matters
Collectionsproduction is what you billed; collections is what arrived

How it actually grows

AssociateLearn the business, not just the dentistry

Time as an associate is where you see scheduling, case presentation, insurance handling and staffing done well or badly โ€” the parts school doesn't teach and that determine whether ownership works.

Watch out: Signing a restrictive non-compete without understanding its radius and duration. It can dictate where you're allowed to open.

Buying or startingThe single biggest financial decision

An acquisition brings existing patients and cash flow from day one at the cost of the purchase price. A start-up costs less upfront and takes years to fill the chairs.

Watch out: Valuing a practice on production rather than collections and patient retention. Those gaps are where overpayment hides.

First yearsHygiene is the engine

A healthy hygiene department produces recurring revenue, keeps patients returning, and generates the diagnoses that fill the doctor's schedule. Practices that neglect it plateau.

Watch out: Letting recall slip. Patients who miss one hygiene visit frequently never return, and the loss compounds silently.

GrowingCase acceptance and associate leverage

Growth comes from more accepted treatment per patient and eventually from a second provider โ€” not from working longer. Case acceptance is a communication skill, and it's trainable.

Watch out: Adding an associate before the schedule genuinely justifies it. Two half-full schedules earn less than one full one.

What each revenue stream is good for

Revenue streamPaysScales
Hygiene & preventiveThe backbone. Drives recall, retention and diagnosis. Steady, recurring Hygienist-limited
RestorativeThe bulk of doctor production in most general practices. Core production Chair-limited
Cosmetic (whitening, veneers)Usually fee-for-service, which means no insurance write-off. High, elective Good
Ortho / clear alignersLong treatment plans and predictable payment schedules. High per case Good
Implants & surgicalLarge cases; keeps referrals (and their margin) in-house. Highest per case Training-limited
In-house membership plansFor uninsured patients. Predictable revenue with no insurance write-off. Recurring Excellent

If you're starting this month

  1. Compare collections to production every month โ€” the gap is where practices quietly lose money.
  2. Measure hygiene recall rate. It predicts next year's production better than this year's does.
  3. Know your write-off percentage per insurance plan, and re-evaluate the worst ones annually.
  4. Track case acceptance rate; it's a trainable skill and usually the cheapest growth available.
  5. If buying, verify patient retention and active-patient count independently โ€” not just the revenue history.

Before you trade on any of this

Dentistry is licensed and heavily regulated: state dental board rules, HIPAA, OSHA, radiography certification, infection control, and record-retention requirements all apply. Many states restrict practice ownership to licensed dentists and regulate corporate arrangements. Advertising claims are also regulated. Get a healthcare-specific attorney and accountant involved before an acquisition โ€” general practitioners often miss the sector-specific traps.

Run this against real numbers โ†’ The same handbook inside the tool, on a worked example you can swap for your own spreadsheet. Free, no account.

The other 20 handbooks

Figures are sourced from published industry research (IBISWorld, trade associations and regulator data) and are stated with their year. They describe typical conditions, not your situation. This is general information for business owners, not financial, tax, or legal advice.