Profits increase for NHS and private practices in Scotland
The period of 2022-23 saw increased profitability for NHS, mixed and private practices in Scotland, new statistics indicate.
This month saw NASDAL Scotland (National Association of Specialist Dental Accountants and Lawyers) release its latest benchmarking statistics.
Covering the financial period, 2022-23, the new statistics show:
- Overall, increased profitability for NHS, mixed and private practices when compared to
2021-22 - An increase in average net profit per NHS principal from £134,594 to £170,610
- An increase in average net profit per mixed practice principal from £178,802 to £191,003
- An increase in average net profit per private principal from £207,575 to £237,352
- Associate average remuneration sees profit up from £65,393 to £82,073.
Biggest rise
Roy Hogg is a chartered accountant, chair of NASDAL Scotland and a partner in Johnston Carmichael. He said: ‘It has been positive to see an increase in profits of NHS, mixed and private practices. The biggest rise in NHS was possibly as a result of practice owners being cautious with spending due to inflationary increases.
‘We also expect that key expenses as a percentage of fees such as wages and lab fees will increase during 2024. We had expected to see private practices return to pre-pandemic levels of normality and they have done so.
‘I expect that the number of private and NHS practices should settle as most that were converting to private have now completed this transition in the latter years to 2024. In regard to associates, the increased profitability is due to returning to normal working conditions following the COVID impact within the 2022 figures.
‘It was interesting to note the rise in shift to private of approximately 7% taking the average private percentage to 36.4%. We will see if this trend continues – the continuing lack of associates and backlog of work is likely to help maintain it for the coming year.
‘The introduction of associate grants from the new SDR for on boarding should help to close the gap for demand for those in rural areas.’
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