The Real Cost of Running a Dental Practice — And How Smart Memberships Save Your Bacon

July 11, 2025
Topics: Dental
Written by: Keilani

How Smart Practice Owners Are Ditching PPOs and Adding $500K+ in Recurring Revenue

Join our exclusive course and discover the proven strategies that practices use to add $10,000+ in monthly recurring revenue with patient membership plans. Dr. Evans took this course and now has over 800 members and $37,000/mo of predictable recurring revenue. Watch this webinar before we take it down in 24 hours.

This course normally sells for $297.

But right now, I’m giving you access for just $47.

That’s cheaper than a hygiene cleaning.

And it could be the most profitable $47 you ever spend.

Get the Course Here → The Six-Figure Membership Plan Course

What You Will Learn:

- How to Build a Membership Plan That Pays You Monthly (Even While You Sleep!)

- Why PPOs Are Stealing Your Revenue—And How to Take Control of Your Profits

- The 3-Step System to Scale Recurring Revenue
(Even If You’ve Never Sold a Membership Plan Before!)

- The #1 Mistake Dentists Make When Dropping PPOs (And How to Avoid It!)

LIVE Case Study: How One Dentist Went from PPO-Dependent to $500K+/Year in Recurring Revenue With a Membership Program!

In dentistry today, PPOs are not your friend, they hurt your cash flow, demolish your profit margins, jeopardize your patient relationships & use A.I. to deny claims!!

If I had an employee or partner that messed up my business like that, I would FIRE them ASAP! 

$47. No fluff. Just results.

You in?

The Cost of Running a Dental Practice Is a Monster — Tame It or Get Eaten Alive

Let’s not sugarcoat this: the cost of running a dental practice is like having a silent vampire draining your bank account at 3 a.m.

New chairs? $25,000.

Staff wages? 30–35% of your production.

Supplies, lab fees, insurance write-offs, broken X-rays, that one patient who “forgets their wallet” EVERY. SINGLE. TIME.

If you don’t have a system to plug those money leaks, you’re not the boss — your expenses are.

But don’t panic. Grab a coffee (or a shot — I don’t judge) because this guide is your master plan to slap costs into submission and grow predictable profits using membership revenue.


️ Dr. Bleeding Cash vs. Dr. Predictable Profits

Dr. Bleeding Cash is your average dentist:

  • 70% overhead

  • 40% write-offs from insurance

  • Open Saturdays just to “make payroll”

  • Always a “busy fool,” never wealthy

He dreams about quitting Delta Dental, but doesn’t dare.

Dr. Predictable Profits saw the cost of running a dental practice creeping higher every year.

So he flipped the script:
Built a BoomCloud™ membership plan
Stacked up Monthly Recurring Revenue (MRR)
Dropped garbage insurance plans
Watched his profit margin grow while working fewer hours.


Costs Are Unavoidable, But Unpredictable Cash Flow Is a Choice

Fact: Average cost of running a dental practice eats 60–70% of production. (ADA Data)

  • Rent? 5–9%

  • Staff? 25–35%

  • Lab & supplies? 10–15%

  • Insurance write-offs? Up to 40%

Most docs keep chasing new patients instead of maximizing the revenue per patient they already have.

But membership patients spend 2–4X more per year — and pay YOU directly. No insurance company taking a bite. No more guessing if your cash flow covers payroll.


The Cold, Hard Numbers on Cost of Running a Dental Practice

Here’s a basic breakdown you should keep taped to your bathroom mirror:

Expense Category Average % of Production
Staff Wages & Benefits 30%
Facility (Rent, Utilities) 6%
Lab Fees 10%
Dental Supplies 6%
Marketing 3%
General Admin 6%
Insurance Write-offs Up to 40%
Profit Margin 25–35% (If You’re Lucky!)

See that last line? That’s the only number that’s actually yours.


Build Predictable Revenue & Beat Rising Costs

Want to beat the game?

Step 1: Build a membership plan.
Step 2: Get patients to sign up.
Step 3: Collect MRR before you drill a single tooth.

Let’s break it down, BoomCloud™ style:


✅ How to Use BoomCloud™ to Destroy the Fear of Rising Costs

1️⃣ Design a Smart Plan

2 Cleanings, Exams, X-rays — included
10–20% off additional treatments
Perks like free whitening gel or a birthday gift

2️⃣ Price It to Offset Monthly Fixed Costs

Example: If your monthly fixed costs are $50,000, aim to cover 50% with MRR.

3️⃣ Automate Recurring Payments

BoomCloud™ handles billing, compliance, renewals, reminders. Patients stay loyal, and your accountant breathes easy.

4️⃣ Market It

Add “Join our In-House Membership!” buttons everywhere:

  • Website

  • Emails

  • Front desk scripts

  • Treatment plan presentations


Real Practice Case Study: Dr. Lopez & the Membership Lifesaver

Dr. Lopez in Texas watched his costs climb 18% in 2 years. He was barely breaking even on insurance patients.

He launched a BoomCloud™ plan in 2020:

  • Signed up 420 members in 12 months

  • Generates $18,500 MRR today

  • Dropped two nightmare PPOs

  • Now has extra cash to upgrade his op chairs without a loan

Dr. Lopez told me, “Insurance is the ultimate overhead bloat. My membership plan is my guaranteed paycheck.”


Extra Tips to Control the Cost of Running a Dental Practice

Negotiate Everything: Supplies, labs, merchant fees. Loyalty = leverage.
Outsource Smart: Consider virtual front desk or billing assistants for lower overhead.
Fire Bad Insurance: Start with the worst write-off plan — transition members to your plan instead.
Measure Revenue Per Patient: Increase treatment acceptance with in-house financing or membership perks.


The Secret Weapon: Membership = Profit Multiplier

Still wondering if you can afford the cost of running a dental practice?

Flip the script:

  • Add 300 members at $30/month = $9,000 MRR

  • Add 600 members = $18,000 MRR

  • Patients spend 2–4X more in added treatments

Suddenly, your lease, lab bill, and staff payroll don’t keep you up at night. You sleep like a baby.


Final Truth: Overhead eats amateurs. Predictable revenue fuels pros.
Use BoomCloud™, master memberships, and laugh at rising costs while your competitors panic.


Ready to Own Your Practice (Not the Other Way Around)?

The cost of running a dental practice won’t shrink. But you can grow your profit margin faster than inflation.

Next Steps:

My Top Podcasts

How Smart Practice Owners Attract, Retain & Create Recurring Revenue

Get the book that’s helping over 65,000  practices ditch insurance, boost cash flow, and create financial freedom with a patient membership program.

Membership Plans For Optometrists

vision-membership-plan-ebook Creating a patient membership plan is the smartest strategy to implement in your practice. You will increase patient satisfaction & loyalty, Increase predictable recurring revenue & increase sales!

Fire The PPOs!

Say goodbye to PPOs and hello to a thriving, independent dental practice. Don’t miss out – your journey to financial freedom starts here!

Subscribe to Our Podcasts!

Jordon Comstock

Author Bio

Jordon Comstock is the Founder & CEO of BoomCloud™, a software that allows practice, clinic & spa owners to build, manage and scale a membership program. This helps practice & clinic owners to create recurring revenue & improve loyalty via membership programs. Jordon is passionate about Music, Hawaii, Healthcare businesses like: dentistry, optometry, med spas and massage spas. Schedule a demo of BoomCloud™ and learn how membership programs can improve your business. Here are more dental books to improve your practice

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