Why should a dental practice do annual lab and supply cost look-backs on completed cases?
Because actual lab and supply costs drift over time, often upward, and fees that were calibrated correctly two years ago may no longer cover the real cost of delivering the work. The mechanics are simple but rarely executed. The practice produces a stream of completed cases across the year. Each case has its own associated lab invoices, implant component costs, restorative material expenses, and supply usage. The accounting captures all of it. What most practices do not do is periodically aggregate the data, calculate the actual cost per case category, and compare it against the fees currently being charged. The drift accumulates silently. A lab vendor raises prices. A new implant system has higher component costs. A material upgrade improves outcomes but adds to the cost basis. None of these individually triggers a fee review. Cumulatively they erode margins year over year. An annual look-back surfaces the drift. Fees can be adjusted upward where actual costs have risen. New procedure categories can be priced based on real data. The discipline costs a few hours per year and protects practice margins reliably. Practices that skip it slowly lose profitability without recognizing the cause.
If the answers you are finding here resonate with you, my team and I work with a small group of clients each year. The next step is a complimentary Discovery Consultation and Practice Review with Dr. McAnally.
