NASDAL Annual Benchmarking Statistics – Costs Up and Profits Down

Whilst income for NHS and private practices has increased (although there was a slight reduction for mixed practices), there has been an increase in most expenses – notably associates’ costs and wages.

NHS practices have fared the worst having seen average total fee income per dentist drop from £181,804 in 2017 to £169,615 in this 2018 report. 

Ian Simpson, chartered accountant and a partner in Humphrey and Co, which carries out the statistical exercise commented, “Although profits are down across all types of practices, it is clear that there is a big divide between private practices and those that are NHS and mixed. Private practices saw a reduction in profit of just 0.5 per cent whereas both NHS and mixed practices saw reductions of around 10 per cemt. Interestingly, mixed practices typically have the highest level of fee income, but they also have the highest cost ratios.”

Associates – BREXIT effect?

The report has also seen the first real rise in associate profitability for many years. Associates have been used to their earnings flatlining for more than a decade but 2017-18 has seen that turn around. In some areas of the country, such as Cumbria and the North East, this will have been caused by associates being in more short supply and thus their bargaining power increasing. There are a number of causes of this but it cannot be ignored that some EU qualified dentists have either returned home or retreated to the major conurbations.