- Email: [email protected]
TO SOLO OR NOT TO SOLO
U TO SOLO VICKIE
OR
NOT TO SOLO
LAZAR
O he most typical type of private practice in the United States has consistently been the solo practice. Why does the solo practice seem to be the predominant choice among private practitioners? Such decisions, as in any other industry, are based on many factors, including personal preferences. The following brief overview of a few practice characteristics will point out the differences and similarities of solo and nonsolo (group) practices.
An analyst from the ADA Survey
Center provides a brief overview of the differences and similarities of solo and nonsolo (group)
practices, based on data gathered from the 1995 Survey of Dental Practice.
patients per week (excluding visits that involved only the services of a dental hygienist). On
average, approximately 90 percent of the time solo dentists spent in the dental office in 1994 involved treating patients. Between 1990 and 1994, average gross billings of solo dentists increased 25.1 percent, from $258,460 to $323,290. (Annual gross billings are defined as the total amount of fees charged for dental care provided in a certain year.) During the same period, average total primary practice expenses of solo dentists increased from
TO SOLO
A solo dentist is the sole owner of the practice and is the only dentist working in the practice. According to the 1995 Survey of Dental Practice, more than twothirds (68.1 percent) of all U.S. dentists were solo dentists in 1994. (In this context, "all dentists" refers to dentists who reported that they were in private practice as a primary occupation and had been in their current practice for at least one year.) The average age of solo dentists responding to this survey was 47.8 years. Almost all (97.3 percent) of the solo dentists responding to the survey employed at least one dental auxiliary in 1994. As shown in Figure 1, between 1990 and 1994, solo dentists treated an average of 61 to 63
Figure 1. Average patient visits per week among solo and nonsolo dentists (excluding dental hygienist visits), 1990 through 1994.
JADA, Vol. 128, February 1997 233
BRE NDS As shown in Figure 4, solo dentists earned an average net income of $119,950 from a primary private practice, an increase of 31.8 percent since 1990. (Net income is defined as the dentist's personal income after practice expenses and before the payment of personal income taxes.) NOT TO SOLO
Figure 2. Average total primary practice gross billings and expenses for all solo dentists, 1990 through 1994.
Figure 3. Average primary practice gross billings per practice hour for solo and nonsolo dentists, 1990 through 1994.
$181,970 to $215,720, an 18.5 percent increase (Figure 2). After excluding shareholder salaries from total expenses, expenses accounted for 59.6 percent of the total primary-prac234 JADA, Vol. 128, February 1997
tice gross billings of solo dentists in 1994. Gross billings per practice hour of solo dentists also rose during this five-year period, increasing an average of 6.2 percent per year (Figure 3).
A nonsolo dentist is a dentist who works in a dental practice in which he or she is not the only dentist. A nonsolo dentist can be an owner dentist, an employed dentist or an independent contractor. According to the 1995 Survey of Dental Practice, the majority (80.5 percent) of the respondents from nonsolo practices were owners; the remaining one-fifth (19.5 percent) were either employed dentists or independent contractors. The average age of a nonsolo dentist was 44.8 years. The majority (81.8 percent) of responding dentists from nonsolo practices employed five or more nondentist staff members in 1994. During the five years examined, nonsolo dentists have treated an average of 61 to 64 patients per week (excluding dental hygienist visits) (Figure 1). Respondents from nonsolo practices indicated that on average, approximately 90 percent of their time in the dental office is spent treating patients. According to nonsolo dentists who responded to the 1995 Survey of Dental Practice, average primary practice gross billings of nonsolo dentists increased 24.4 percent between 1990 and 1994 (from $617,100 to $767,510). During this same period, total primary practice expenses among nonsolo dentists increased from $501,740 in
TRENDS 1990 to $563,010 in 1994, a 12.2 percent increase (Figure 5). When shareholder salaries were excluded from total expenses, expenses accounted for 63.8 percent of the total primary practice gross billings of nonsolo dentists in 1994. As shown in Figure 3, the average gross billings per practice hour of nonsolo dentists increased from $129.87 in 1990 to $175.10 in 1994. This increase amounted to an average increase of 7.8 percent per year. Nonsolo dentists earned an average net income of $128,390 from a primary private practice, an increase of 33.3 percent since 1990. Nonsolo owner dentists earned an average net income of $147,640 from their primary private practice, an increase of 30.6 percent since 1990 (Figure 4).
Figure 4. Average primary practice net income for solo and nonsolo dentists, 1990 through 1994.
CONCLUSION
The solo practice has been and continues to be the foundation of private-practice dentistry. The simple appeal of autonomy must no doubt play a part in the process of deciding between a solo and a nonsolo practice. But regardless of whether dentists are practicing in solo or nonsolo settings, they continue to meet the primary goal of providing patient care across the nation. Ms. Lazar is a research analyst II, ADA Survey Center, 211 E. Chicago Ave., Chicago, Ill. 60611. Address reprint requests to Ms. Lazar.
Figure 5. Average total primary practice gross billings and expenses for nonsolo dentists, 1990 through 1994.
JADA, Vol. 128, February 1997 235
OR
NOT TO SOLO
LAZAR
O he most typical type of private practice in the United States has consistently been the solo practice. Why does the solo practice seem to be the predominant choice among private practitioners? Such decisions, as in any other industry, are based on many factors, including personal preferences. The following brief overview of a few practice characteristics will point out the differences and similarities of solo and nonsolo (group) practices.
An analyst from the ADA Survey
Center provides a brief overview of the differences and similarities of solo and nonsolo (group)
practices, based on data gathered from the 1995 Survey of Dental Practice.
patients per week (excluding visits that involved only the services of a dental hygienist). On
average, approximately 90 percent of the time solo dentists spent in the dental office in 1994 involved treating patients. Between 1990 and 1994, average gross billings of solo dentists increased 25.1 percent, from $258,460 to $323,290. (Annual gross billings are defined as the total amount of fees charged for dental care provided in a certain year.) During the same period, average total primary practice expenses of solo dentists increased from
TO SOLO
A solo dentist is the sole owner of the practice and is the only dentist working in the practice. According to the 1995 Survey of Dental Practice, more than twothirds (68.1 percent) of all U.S. dentists were solo dentists in 1994. (In this context, "all dentists" refers to dentists who reported that they were in private practice as a primary occupation and had been in their current practice for at least one year.) The average age of solo dentists responding to this survey was 47.8 years. Almost all (97.3 percent) of the solo dentists responding to the survey employed at least one dental auxiliary in 1994. As shown in Figure 1, between 1990 and 1994, solo dentists treated an average of 61 to 63
Figure 1. Average patient visits per week among solo and nonsolo dentists (excluding dental hygienist visits), 1990 through 1994.
JADA, Vol. 128, February 1997 233
BRE NDS As shown in Figure 4, solo dentists earned an average net income of $119,950 from a primary private practice, an increase of 31.8 percent since 1990. (Net income is defined as the dentist's personal income after practice expenses and before the payment of personal income taxes.) NOT TO SOLO
Figure 2. Average total primary practice gross billings and expenses for all solo dentists, 1990 through 1994.
Figure 3. Average primary practice gross billings per practice hour for solo and nonsolo dentists, 1990 through 1994.
$181,970 to $215,720, an 18.5 percent increase (Figure 2). After excluding shareholder salaries from total expenses, expenses accounted for 59.6 percent of the total primary-prac234 JADA, Vol. 128, February 1997
tice gross billings of solo dentists in 1994. Gross billings per practice hour of solo dentists also rose during this five-year period, increasing an average of 6.2 percent per year (Figure 3).
A nonsolo dentist is a dentist who works in a dental practice in which he or she is not the only dentist. A nonsolo dentist can be an owner dentist, an employed dentist or an independent contractor. According to the 1995 Survey of Dental Practice, the majority (80.5 percent) of the respondents from nonsolo practices were owners; the remaining one-fifth (19.5 percent) were either employed dentists or independent contractors. The average age of a nonsolo dentist was 44.8 years. The majority (81.8 percent) of responding dentists from nonsolo practices employed five or more nondentist staff members in 1994. During the five years examined, nonsolo dentists have treated an average of 61 to 64 patients per week (excluding dental hygienist visits) (Figure 1). Respondents from nonsolo practices indicated that on average, approximately 90 percent of their time in the dental office is spent treating patients. According to nonsolo dentists who responded to the 1995 Survey of Dental Practice, average primary practice gross billings of nonsolo dentists increased 24.4 percent between 1990 and 1994 (from $617,100 to $767,510). During this same period, total primary practice expenses among nonsolo dentists increased from $501,740 in
TRENDS 1990 to $563,010 in 1994, a 12.2 percent increase (Figure 5). When shareholder salaries were excluded from total expenses, expenses accounted for 63.8 percent of the total primary practice gross billings of nonsolo dentists in 1994. As shown in Figure 3, the average gross billings per practice hour of nonsolo dentists increased from $129.87 in 1990 to $175.10 in 1994. This increase amounted to an average increase of 7.8 percent per year. Nonsolo dentists earned an average net income of $128,390 from a primary private practice, an increase of 33.3 percent since 1990. Nonsolo owner dentists earned an average net income of $147,640 from their primary private practice, an increase of 30.6 percent since 1990 (Figure 4).
Figure 4. Average primary practice net income for solo and nonsolo dentists, 1990 through 1994.
CONCLUSION
The solo practice has been and continues to be the foundation of private-practice dentistry. The simple appeal of autonomy must no doubt play a part in the process of deciding between a solo and a nonsolo practice. But regardless of whether dentists are practicing in solo or nonsolo settings, they continue to meet the primary goal of providing patient care across the nation. Ms. Lazar is a research analyst II, ADA Survey Center, 211 E. Chicago Ave., Chicago, Ill. 60611. Address reprint requests to Ms. Lazar.
Figure 5. Average total primary practice gross billings and expenses for nonsolo dentists, 1990 through 1994.
JADA, Vol. 128, February 1997 235