Overhead — The 62% Rule
Where every dollar should go, and the categories that quietly eat $80K/year.
5 min read · free · no signup
The healthy skeleton
Total overhead: 60–65% of collections (over ~75% = you work for the practice, not yourself). Staff: 25–28%. Rent/occupancy: 5–7%. Lab + supplies: ~13–15%. Marketing: 3–5%. Owner net in a well-run GP practice: 30–40% of collections.
Where the leaks hide
Overstaffing is the #1 silent killer — one extra full-time salary is ~$50–70K/year of pure margin. Next: supplies creep (no one re-bids vendors), insurance write-offs nobody measures, and rent signed at 10%+ of collections that growth has to carry forever. Audit quarterly; leaks compound.
Hygiene is the engine
A healthy hygiene department drives ~25–30% of production AND feeds the doctor's schedule through exams. If hygiene is under 25%, the fix is usually reappointment rate and perio program, not 'more marketing.'
Benchmark yourself now
Two minutes, free, no email required: enter collections, staff cost, rent, and marketing — get a graded scorecard against these benchmarks. (Consultants charge $2,500+ for this exact analysis.)
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