Running a dental practice means making decisions with imperfect information. These briefs outline common scenarios we observe, the signals we assess, and typical paths owners consider. These are not templates or guaranteed outcomes—they’re frames to help clarify your next move. If one sounds familiar, let’s talk about your specific situation.
A. Owner Pay & Entity Fit
Is your compensation and entity classification aligned with your current scale and goals?
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Situation: Owner income feels volatile or tax-heavy; the entity was structured when revenue or complexity was lower.
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Signals We Assess: Role vs salary; entity type vs net income; draw practices; tax class alignment; growth path.
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Typical Paths: Keep current structure; adjust compensation mix; explore reclassification or entity restructuring.
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When to Act: Revenue increases substantially; staffing or locations added; taxes or payroll burdens misaligned.
B. Overhead Drift & Margin Protection
Collections may rise—but so may costs. Are profits slipping through the cracks?
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Situation: Practice revenue growing but take-home or margin shrinking.
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Signals We Assess: Supply & lab spend, staff utilization, schedule efficiency, fee changes.
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Typical Paths: Reallocate roles; renegotiate vendors; adjust staffing or schedule; recalibrate fee scales.
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When to Act: Overhead/share of revenue rising over several quarters; owner pay squeezed.
C. Hygiene Utilization & Recall Rhythm
A full hygiene schedule is good—but profitability depends on recall and flow.
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Situation: Hygiene ops are full but margins not rising in line.
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Signals We Assess: Recall frequency; no-shows; mix of prophy vs deep cleaning; staffing match; hygiene schedule occupancy.
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Typical Paths: Adjust recall systems; fine-tune staff roles; adjust appointment templates.
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When to Act: Recall backlog growing; schedule “busy” but cash flow stalling.
D. Collections-to-Cash Lag
Producing revenue is one thing. Getting cash on time is another.
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Situation: High production but slow collections; cash doesn’t reflect billed work.
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Signals We Assess: A/R aging; write-off patterns; payer delays; deposit/reconciliation frequency.
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Typical Paths: Tighten intake/verification; AR KPIs; reinforce follow-ups.
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When to Act: AR days increasing; cash flow stress arising.
E. Multi-Location Readiness
Expansion introduces complexity. Are you ready?
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Situation: Considering second location, partnership, or merger.
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Signals We Assess: Leadership bandwidth; reporting & financial consolidation readiness; cash reserves; operational consistency.
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Typical Paths: Strengthen foundation at existing location; phased expansion; clarify roles & governance.
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When to Act: Core site stable; team and operations have capacity; funding/opportunity available.
F. Equipment & Technology Timing
Big purchases carry risk and reward. Timing, capacity & strategy matter.
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Situation: Vendor or tax incentives prompt purchases without strategic alignment.
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Signals We Assess: Utilization, patient experience, maintenance cost, cash capacity.
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Typical Paths: Delay, stage purchases, bundle into strategic refresh.
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When to Act: Bottlenecks in capacity; improved patient value; financial/cash conditions favorable.