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What should clinical supply expenses be for a general dental practice, and what do clinical supply percentages indicate?

Clinical supply expenses should be approximately 5% to 7% of annual gross collections for an average, but well run general dental practice. Anything less than 5% indicates that this dentist probably spends way too much time checking the mailorder catalogs and it will cost him/her in lower clinical production. If the clinical supply percentage is more than 7% (use of a Cerec machine will increase supplies by 2% or so but lab fees will be lower) then this practice owner is not keeping a close eye on ordering supplies (sloppy oversight), or this owner is ordering supplies for the home and charging them to the dental office. There have been instances where the clinical supplies were as high as 10% to 12% in a general dental practice, but this usually indicates that someone may be stealing from the practice, so this should be checked very carefully if you are considering purchasing this practice. See Less

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