Excessive staff costs are the number one overhead problem for most practices. Unfortunately, too many doctors are unaware they have an overstaffing problem and even those that are can’t correctly identify the root cause of this practice profit killer. Most dentists are shocked to learn that increased hourly rates, health insurance, and other employee benefits are not typically the primary cause.
Rather, the primary cause of excessive staff costs is the total number of employees. This problem not only cuts into your annual practice profits, but more importantly dramatically decreases your ability to retire, since you have less money to fully fund your retirement. To make matters worse, these excess overhead costs will substantially decrease your practice profit and related value, possibly costing hundreds of thousands of dollars when you sell.
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