Are you one of the 11%?

The Practice Support Team tracks trends in data collected from practices throughout the year.

In 2022, average office fees continued to be in the 60th percentile for their respective zip code, and only 11% of the practices we analyzed in 2022 had healthy fee ranges.

With inflation rising to 8.2%, as measured by the CPI (Consumer Price Index) and economists predicting inflation will remain at historically high levels for 2023, McGill Advisory has recommended an annual fee increase of 5% for 2023. (If your fees have not been balanced, you will need to do this first.)


Why 5%?

In addition to increased costs for supplies, lab fees, rent, and more, the dental sector continues to face a tight labor market commanding increases to staff compensation packages. Practice owners will need to continue implementing new technology, supporting a digital workflow and meeting patient expectations in a competitive market. Higher costs necessitate an increase in fees.


Realize an Immediate and Substantial Impact

With 30 codes accounting for 90% of billable production in most practices, getting those fees at a healthy level is critical. Keep in mind that if you are not currently in the 80th percentile, your overhead will appear higher than the accepted healthy range. The higher your fees, the lower your percentage of overhead will be relative to your total collections. A change from the 60th to the 80th percentile might mean only a small difference to the patient. However, when you multiply the frequency of each code used in your practice, you will quickly see the impact even a small increase can have.

What would happen if all your fees were optimized and increased each year? Practices that fail to raise fees annually will certainly suffer financially through higher overhead and lower profits over their remaining career.


   For example:


Current Fee
(60th percentile)

80th Percentile Fee


























TOTAL $50,018


Don’t Believe the Managed Care Myth

You might think that you can’t realize these profits due to your participation with managed care plans. Here’s the truth:

  • You have private pay patients in your practice (conservatively 20%)
  • You have out of network patients
  • 60% of the population consists of dual income families*, leading to more dual-coverage opportunities, allowing you to bill up to your full office fee
  • Well positioned fees fuel your negotiating (and renegotiating) power with managed care companies
  • Annual increases will contribute to a higher fee profile for your area, increasing the chances of higher reimbursements in the future
  • Healthy fees make your practice more attractive during transitions. New owners do not want the burden of sudden or dramatic fee increases.
  • Healthy fees help your practice maintain a healthy overhead

Plan to adjust your fees now. Burkhart’s Practice Support Team welcomes the opportunity to support your healthy business in 2023 and beyond. We are committed to your practice’s business success. Reach out for your zip code specific Fee Analysis, complimentary to our SSG, Bravo, and Platinum clients.




Your success is our success. Please reach out to us anytime.
Learn more, visit the Practice Support Team page, call 1.800.665.5323 or email us at

Burkhart Dental Supply – Practice Support Team

Category: Practice Consulting

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