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Profit First for Dental Practices: Why High Production Doesn't Mean Profit | Dr. Julie Woods
Description
In 2017, periodontist Dr. Julie Woods had her highest production and collections ever and still couldn't cover Christmas bonuses. Her overhead was 84%. She turned it around with Profit First, a cash management system that uses separate bank accounts to set aside profit, owner pay and taxes before anything else. Julie explains how it works, where most dentists overspend, how she brought her team into the numbers, and what she learned writing and self-publishing her book.
In this episode:
- Top production, no profit: Julie's 2017 breaking point
- What Profit First is (think Dave Ramsey, but for your business)
- Using bank accounts to budget for profit, payroll, taxes and big purchases
- 84% overhead and 35% insurance write-offs
- Bringing your team into the practice finances
- Going out of network and collecting at the time of service
- The most common profitability mistake: staff costs
- Health insurance options for a small dental team
- How to write and self-publish a book
- Advice for dentists who don't love practicing right now
🙌 Special shout out to Q-Optics for supporting Dentists in the Know!
📰 Plus dental news from October 2023: the Henry Schein cyberattack, a Pennsylvania bill letting hygienists do school dental screenings, two California counties weighing vaccine requirements for dental offices, and a new world record for pulling cars with your teeth.
Dr. Julie Woods is a practicing periodontist and practice owner in Topeka, Kansas, a Profit First Professional, and the author of a book on profitability for dentists. Book resources at https://drjuliewoods.com/book
Chapters:
0:00 Intro
1:42 Thanks to Q-Optics
3:06 The @everyone tag, and patients asking about Viome
6:50 News: Henry Schein cyberattack
7:45 News: Pennsylvania hygienists and school screenings
9:29 News: California counties and vaccine requirements
10:27 News: pulling six cars with his teeth
12:00 Meet Dr. Julie Woods
14:41 Julie's path to periodontics
18:11 Buying her practice
19:01 Top production, no money for bonuses
22:48 The breaking point, and turning it around
23:37 COVID as a wake-up call
24:18 What is Profit First?
25:22 Using bank accounts to manage cash
26:54 84% overhead and 35% write-offs
28:35 Bringing the team into the numbers
30:18 Out of network and collecting up front
31:41 From fixing her practice to helping others
34:19 Writing the book
38:42 Self-publishing a book
42:21 The biggest mistake: staff costs
45:01 Health insurance for your team
48:15 Advice for dentists who are struggling
50:32 Figuring out what success means to you
52:22 Getting paid for your hard work
53:30 Closing
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