Tipping the balance
The average profit of private dental practices in the UK has crept ahead of average NHS practices for the first time in nearly a decade according to the latest benchmarking statistics from the National Association of Specialist Dental Accountants and Lawyers (NASDAL). The profit differential is small, with an average NHS practice making a profit of £129,000 per principal, compared to £131,000 in a private practice but some strong performances in private practice in the financial year 2013-14 tipped the balance.
The picture for all dental practices is improving, said Ian Simpson, a chartered accountant and a partner in Humphrey and Co, which carried out the statistical exercise. “Income and profits are up across the board with all types of practice seeing increased profit and relatively unchanging costs. Fee income is up by £7k per principal in a typical NHS practice and by £23k in a typical private practice.”
He said that private practices suffered in the years following the 2008 slump but have gradually picked up. This is partly due to private practices having greater control over their income than NHS practices and hence having a greater ability to recover from poor trading results in the recession.
In 2013/14, the average gross fee income generated by a dentist working in a private practice was £248,000, compared to £180,000 for a dentist in an NHS practice. Meanwhile, practice expenses equate to 65 per cent of fee income for a NHS practice compared to 68 per cent for a private practices.
Register now to continue reading
WHAT’S INCLUDED
-
Unlimited access to the latest news, articles and video content
-
Monthly email newsletter
-
Podcasts and members benefits, coming soon!