06/18/2026
A straight-talk one for the practice owners.
Every consultant will tell you your overhead "should" sit around 60%. So you check, you're at 62%, and you either panic or relax based on that one number.
Here's the thing — that number tells you almost nothing.
1. First, there's no standard for what "overhead" even includes. One office counts it against production, the next against collections. One includes the dentist's pay and the loan, the next leaves both out. So comparing your number to someone else's is like comparing two thermometers set to different scales. The only fair comparison is to yourself — your number this quarter against last, measured the same way every time.
2. Second, it's just a ratio — expenses divided by collections. Raise your fees, and it drops, even though you cut nothing. Have a slow collections month, and it jumps, even though you didn't spend more. The number can move without anything real changing.
And
3. Third, even an honest number is a lag indicator — a rear-view mirror. It tells you what already happened last year, not what to change, or how.
The real story is underneath: your team, your PPO plans, your supplies and lab, the software you've been auto-renewing for years. That's where the decisions actually live. The percentage is just the symptom.
So instead of "is my overhead too high," the better question is "what's my next move — and what will it free up?"
And if you've ever gone back and forth on whether to Stay, Scale, Slow Down, or Sell, my free What's Next Assessment is a good place to start.
DM me NEXT, and I'll send it your way — no pitch, just a clear read on where you stand.
