Technology Budget

by Larry Emmott on July 13, 2005

in General

It is a common mistake to assume that once you have purchased practice management software and some computers to run it your investment in technology is over. The fact is you will have ongoing expenses and you must plan and budget for them.

Ongoing expenses will include training, software upgrades, technical support, additional hardware and replacement hardware.

According to an article in Investor’s Daily the average health care office spends 2% of revenue on technology. That includes hospitals as well as physicians and dentists. In addition the article noted that businesses in general spend an average of 10% of gross revenue on technology.

Therefore an average dental office should plan to invest at least two percent of gross in technology on an annual basis. For a typical single practitioner with a $500,000 gross the annual investment should be at least $10,000. A better budget would be 5-7% or more for an aggressive high tech office. That translates into $25,000 to $35,000 per year.

Don’t be stingy with team education. In fact you should try to create an atmosphere of continual self-improvement both for the staff and the dentist. It is worth investing in staff who are committed to the practice and using their new skills.

 

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