How much money do dentists ACTUALLY make?

Summary

In this video, Joel, a recently graduated dentist, breaks down the earning potential for dentists at various stages of their careers, from new graduates to practice owners. He discusses the wide range of incomes, emphasizing that earnings can significantly increase depending on factors like work hours, location, and practice ownership. Joel highlights the potential for high earnings as a dental associate or practice owner, while also noting the challenges and complexities involved in running multiple practices. Ultimately, he encourages viewers to consider financial aspects when choosing a dental career.

Takeaways

• 🤑 Dentists' earnings can vary significantly based on their stage of career, from new graduate to established associate or practice owner.
• 💰 New dentists typically earn between $125,000 to $200,000, but some may earn more by working harder or in more remote areas.
• 📊 The American Dental Association (ADA) reports a median income of $130,000 for recent graduates, with a range of $120,000 to $180,000 for 45% of them.
• 🏆 Exceptional new graduates can earn more than the average by taking on more work or moving to areas with higher demand and fewer dentists.
• 🔝 As dentists become more established, they can earn more due to increased skill and efficiency, with the potential to earn between $150,000 to over $400,000.
• 🌟 The 'super GP' concept highlights general practitioners who have mastered advanced procedures and can earn at the high end of the scale for associates.
• 💼 Practice ownership is considered the 'holy grail' for earning potential, allowing dentists to earn income even when not actively working in the chair.
• 📈 Overhead costs for a dental practice can range from 50% to 70%, with an average of around 60%, affecting the net income of practice owners.
• 🏆 The average billings for a dental practice owner reported by the ADA is $742,000, with potential net earnings of around $300,000 after overhead.
• 🌱 Owning multiple practices can exponentially increase earnings, with some owners taking home nearly half of total practice billings.
• 🚀 Dentists have the opportunity to diversify their income through alternative investments and the potential to sell their practice as an appreciating asset.

Q & A

Why is it considered taboo to discuss income in the healthcare field?

It's considered taboo because there is a lot of virtue signaling that occurs when people discuss careers, especially in healthcare, where the narrative often emphasizes noble reasons for the profession over financial incentives.

What is the general range of income for a new graduate dentist?

The income for a new graduate dentist typically ranges from $125,000 to $200,000, but it can vary widely depending on factors such as location, hours worked, and the dentist's willingness to take on additional responsibilities.

What is the reported median income for new grads according to the American Dental Association (ADA)?

According to the ADA, the median income for new grads is around $130,000, with 45% of recent grads earning between $120,000 and $180,000.

Why might a new dentist's income be higher than the typical range?

A new dentist's income might be higher than the typical range if they choose to work more hours, take on additional responsibilities, or work in a location where there is a higher demand for dental services.

What is the potential income for a dentist who moves to a remote area?

A dentist who moves to a remote area can potentially earn significantly more due to supply and demand, as the speaker in the script was able to earn just over $300,000 in their first year by moving to a remote location.

What is the role of a 'super GP' in dentistry and how does it affect their income?

A 'super GP' is a general practitioner who has advanced skills and performs a wide range of dental procedures, including complex treatments like root canals, wisdom tooth extractions, and implant placements. This specialization allows them to bill more and earn at the upper extreme of what a dental associate can earn.

What is the typical income range for an established dental associate?

An established dental associate can expect to earn anywhere from $150,000 to over $400,000, with the potential to earn even more depending on their skills, the number of procedures they perform, and their efficiency.

How does becoming a practice owner affect a dentist's income?

Becoming a practice owner can significantly increase a dentist's income as they can earn money not only from their own work but also from the work of other dentists and hygienists in their practice. Additionally, they have more control over the practice's operations and billing.

What is the average overhead for a dental practice and how does it impact the dentist's income?

The average overhead for a dental practice is around 60%, which includes expenses such as wages, materials, and rent. This overhead is subtracted from the practice's billings to determine the dentist's take-home income.

How does owning multiple dental practices affect a dentist's income and lifestyle?

Owning multiple dental practices can greatly increase a dentist's income, potentially allowing them to earn hundreds of thousands of dollars annually without having to work in the chair. It also requires significant management and organizational skills, which can be challenging but also rewarding.

What is the potential retirement benefit of owning a dental practice?

Owning a dental practice can act as a retirement fund because it is an income-producing asset that can be sold. If the practice has been successfully run and grown, it can be an appreciating asset with significant value when it comes time to sell.