Main Street Dental Practice Management Co. | ||
Income statement for a one-year period from performing management services | ||
Revenues of the practices | $4,000,000 | |
Charges for management services: | Cost | Cost-plus @ 10% |
Sales/marketing | $180,000 | $200,000 |
Accounting | $72,000 | $80,000 |
Billings and collections | $144,000 | $160,000 |
Staffing or human resources | $108,000 | $120,000 |
Other management services | $36,000 | $40,000 |
Revenue of the DPM | 600,000 | |
Less: Operating cost @ 5% of DPM revenue | $30,000 | |
EBITDA or net income of DPM | $570,000 |
How to price DPM services in a noncorporate state - Table
Jul 17, 2013
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