Technology Budget

According to an article in Investor’s Daily, the average health care office spends 2% of revenue on technology. That includes hospitals as well as physicians and dentists. In addition the article notes that businesses in general spend an average of 10% of gross revenue on technology.

Therefore, an average dental office should plan to invest two percent of gross in technology at an absolute minimum. A better budget would be 5-7% or more for an aggressive high tech office.

The budget should include both capital expenses and ongoing expenses, such as software upgrades, technical support, replacement hardware and most important training.

Money invested wisely in practice development pays off with higher profits in the future. Don’t be stingy with team education. In fact you should try to create an atmosphere of continual self-improvement both for the staff and the dentist. It is worth investing in staff who are committed to the practice and using their new skills.

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