Profits down and costs up reports NASDAL
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- Published: Saturday, 24 March 2012 20:55
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| The National Association for Specialist Dental Accountants and Lawyers (NASDAL) has published its client dentists’ statistics for 2010/11. Fee income is down for both the NHS and private sectors, profits are down and costs have increased. The average net profit for a typical dental practice has reduced from £139,569 to £125,691. The profit of Associates fell to £68,000 compared to £71,000 in the previous year. |
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Private practice fee income has remained static but rising costs have led to a seven per cent drop in net profit. The average UDA rate paid to practices appears to have remained static at around £25 over the last three years. While the highest UDA rate paid to a practice was around £44, the highest to an associate was £33.50.
The profit of Associates has continued to fall and in 2010-2011 stood at around £68,000 compared to £71,000 in the previous year. The majority of associates still enjoy a 50% agreement with their principal but this is not always 50% of the full UDA rate agreed with the Primary Care Trust.
Ian Simpson, Chartered Accountant and Specialist Dental Advisor, said that while private practice appeared to be surviving reasonably well despite the economy in 2010-11, mixed practices had suffered. He added, larger practices had experienced the greatest impact on profit.
Nick Ledingham, NASDAL chairman, of Specialist Dental Accountants Morris and Co, speaking at the press conference, said the figures provided an interesting insight into how dentists and their patients responded to an economy in the doldrums. He believes the NHS fee income has dropped because fewer non-exempt patients were going for treatment and some dentists were opting not to fulfill or were unable to fulfill their NHS contract. He believes mixed practices which have fared least well are best placed to prosper as the economy recovers.’
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