Associate income on the slide?

From BDA newsletter.

Morris and Co associate dental statistics summer 2011

In their summer 2011 newsletter the specialist dental accountants Morris and Co highlighted the latest statistics for associate earnings.

They note that incomes levels for associates are plateauing and beginning to drop following significant rises in recent years. They note that gross fee levels are falling and this, coupled with rising laboratory costs and reductions in the average percentage of gross fees received, has led to a small decrease in net profit levels.

Figures for a fourth year associate show the average price per UDA is was £20.16 in 2007 compared with £23.04 in 2010 although the average percentage of gross fees received has fallen by 0.2 per cent to 49.9 per cent over the same period.

Lab bills have reduced by 0.1 per cent each year since 2006 despite an anomalous high of 6.6 per cent in 2008 and 2010 figures were 6.2 per cent.

I am surprised that the average has been above 50% but is starting to slide albeit slightly. Perhaps some reality is reaching dental practices at long last? Could this be the tipping point I wonder?

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