NASDAL survey shows private practice profits just ahead of NHS
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- Published: Thursday, 26 March 2015 07:48
- Written by News Editor
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Average profit of UK private dental practices was just ahead of NHS in nearly a decade according to the latest statistics from the National Association of Specialist Dental Accountants and Lawyers(NASDAL). The difference is small, with an average NHS practice making a profit of £129,000 per dentist, compared to £131,000 in a private one but there were some strong performances in private practice during 2013-14.
The picture for all dental practices is improving, said Ian Simpson, a chartered accountant and a partner in Humphrey and Co, which carries out the statistical exercise. He said: “Income and profits are up across the board with all types of practice seeing increased profit and relatively unchanging costs. Fee income is up by £7k per principal in a typical NHS practice and by £23k in a typical private practice.”
He noted that private practices suffered in the years following the 2008 slump but have gradually picked up. This is partly due to private practices having greater control over their income than NHS practices and hence having a greater ability to recover from poor trading results in the recession.
In 2013/14, the average gross fee income generated by a dentist working in a private practice was £248,000, compared to £180,000 for a dentist in an NHS practice. Meanwhile, practice expenses equate to 65% of fee income for a NHS practice compared to 68% for a private practices.
Ian said that a variety of key components had remained unchanged: UDA rates are almost identical, as well as business structures, with 58% of the profession being sole traders, and the rest either partnerships or Limited companies. The number of incorporated practices increased by only 3%. Earnings for associates have gone up by just a small amount, at around an average £700 per individual.
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