Should You Be Worried About Over-saturation?

Dental Saturation

We’ve noticed that over-saturation is a big concern for dentists looking to purchase a practice or build a practice from scratch. Unfortunately, it’s difficult for us to give a –one-size-fits-all answer to this question because it depends on so many different variables. The type of practice you own, the size of the city you live in, the size of your practice, etc.

For example, the economy in states like Iowa, Idaho, Missouri, and Wyoming have better economies than states like California, Arizona, Nevada, and Florida. As another example, certain practices do better than others. Comprehensive practices that are centered on patient relationships, and the health of each individual patient are the practices in which we see the most growth.

We can break this down for you by using 3 different dentistry business models as examples:

  • First Level: The first level is tooth-centered dentistry, and this type represents around 60% of all dentists. This means that this level also has the highest competition for new patients. Because the average patient only brings around $1,000, this level will require a much higher volume of new patients coming in. First level dentistry is down around 25-30%.
  • Second Level: Because second level dentists have received more technical training, they don’t need such a high volume of patients. This is because each patient brings in around $3,000. The success of second level dentistry has a lot to do with the size of the city and the number of patients. On average, these practices are only down 1-15% depending on these factors.
  • Third Level: This level has the smallest percentage of practices, which means that these dentists are thriving because they’re in much higher demand. This is the patient-centered, relationship based practice. Not only do these dentists have extensive training, they also have the drive and the skill to form long-term relationships with their staff and their patients. We see third level practices thriving no matter the specialty or the city they’re in.

If you’re concerned about over-saturation in your city or specialty, let CTC Associates help. We can provide you with information and research to help you know what your options are and enable you to be as successful as possible. We want to help you become a third level practice, so give us a call today!

Posted on Mar 14, 2016

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