Dentists’ profits reduced or static in 09/10
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- Published: Tuesday, 15 March 2011 20:58
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The net profits of dentists in the financial year 09/10 were either reduced or static compared to the previous year according to the annual statistics released by the National Association of Specialist Dental Accountants (NASDA). There was a relatively small increase in fee income – from £379,054 to £390,072. However, increases in materials and staff costs resulted in an overall reduction in net profit, |
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When the results for 09/10 of all the practices were combined, he said, there was a relatively small increase in fee income – from £379,054 to £390,072. However, increases in materials and staff costs resulted in an overall reduction in net profit, from £141,835 to £139,569 or from 37.4% to 35.8% of overall income.
Associate income was reduced on average by £2,000. However, practices with associates were still generally more profitable. The average net profit for a practice with associates was £148,408 while without associates, it was £118,992.
In the previous financial year 08/09, private practice very definitely suffered from the recession. While in 09/10, the fortunes of private practitioners were not vastly improved, there was an increase in fee income – from £358,717 to £364,924. Due to increased costs across the board, such as laboratory costs, materials and wages, this resulted in a small reduction in net profit, from £130,621 to £126,390, or from 36.4 per cent to 34.6 per cent. The fact that the decrease was not greater could be ascribed to increased use of hygienists from 2.9% to 3.5% and a reduction in bank interest charges which were reduced from 2.1% to 1.4%.
UDA rates continued to be variable with the lowest paid to a practice being £17.26 and the highest £41.63. The statistics show a significant drop of £18,446 in fee income for NHS practices. There are a number of explanations for this, principally the delayed effect of clawback being implemented.
Nick Ledingham, Chairman of NASDA and a partner in Morris and Co, said the statistics are based on averages and are a comprehensive independent benchmarking exercise against which dentists can compare their performance. As they are based on accounts rather than tax returns, and include private practice, he said, they are considerably more detailed than other figures.
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