With the location becoming the first step towards dental clinic setup, it can determine the minimum amount required to finance it. Availing a rented property at central locations alone can cost up to Rs. 1.5 Lakh.
Subsequently, the minimum estimated the cost for dental setup can be in the range of Rs. 4 Lakh to 6 Lakh.
And to acquire all these, external financing is of critical importance. Dentists may not be able to start a dental clinic if they don’t have the necessary funds unless they are planning to avail dental practice financing.
Dental clinic set up costs is broadly categorised in two sections –
1. Cost of setting up and running
A major portion of the investment goes to setting up the clinic itself. Not only the setup but running a business requires funds for daily expenses.
Take a look at various expenses needed to run a dental clinic –
- Clinic rent and maintenance cost: Clinic rents completely vary from one business to another based on the location, area, and design of office space. It is advised by marketing experts to set up a clinic in a central locality to increase the visibility of your business and attract more patients. Price differs and may vary from a few thousand up to lakh depending on the state, city, and locality of the dental clinic. You can apply with reputed financial institutions or NBFCs to receive financing and enjoy an attractive doctors loan interest rate.
- Utility bills like phone, electricity, etc.: The costs involved in the payment of electricity bills are according to the commercial rate per unit. Phone and internet bills depend on the plan you have chosen. Opt for a basic plan in the initial days to manage your monthly budget effectively.
- Purchase of white goods: This category includes the cost incurred in the purchase of computers, air conditioner, refrigerators etc. The average rate of an air conditioner and desktop may vary between Rs. 20,000-50,000.
- Payment of staff: Monthly payment for staffs is determined based on their skills, expertise, knowledge, and designation.
- Marketing costs: Marketing costs can be high and may not bring any fruitful result if not strategized accordingly.
The above sections usually have a minimum cost estimation of Rs. 20,000 and can go up to a few Lakh depending on the mentioned factors. So, availing a dental practice financing could help if you are struggling in arranging the funds.
2. Cost of treatment
The treatment cost includes equipment and service costs along with equipment replacement and up-gradation cost. Make sure to learn the costs involved in setting up a medical practice before availing dental practise financing to buy the necessary instruments.
Basic equipment every dental clinic requires is –
- Dental chair and hard equipment: This equipment can range anywhere between Rs. 2 Lakh to Rs. 10 Lakh. One can avail a loan for doctors to finance their clinic setup.
- Dental drills, X-ray sensors and hand instruments: These instruments collectively can sum up to a range of Rs. 2 Lakh to Rs. 4 Lakh.
Moreover, the depreciation of assets over time is one unavoidable factor. So, time to time replacement or up-gradation of equipment may be required. One can make use of dental practise financing for that purpose.
Apart from the instrument and equipment, each dental service has a certain unit cost incurred for the process, which are –
a. The cost incurred to extract a tooth
The procedure requires the use of local anaesthesia, syringe, dental forceps, cotton and at times, dental drills.
The estimated cost for a single pair of forceps can cost from Rs. 1,000 to Rs. 2,500. Other per patient equipment costs lies in an estimated range of Rs. 50 to Rs. 300 per patient.
b. The cost incurred for root canal treatment (RCT)
Dental drills & burs, X-rays, measuring gauges, dental files, filling materials, antiseptic solution, are the basic requirements for a root canal treatment. Cost per person for the root canal treatment ranges from Rs. 1000 to Rs. 5000.
c. The estimated cost incurred for dental fillings
- Dental drills: Rs. 4,000 to Rs. 20,000.
- Dental burs: Rs. 500 to 3000 per bur.
- Filling material: Rs. 800 to Rs. 7000 for about 3 grams of the composite.
- Cost per person for dental fillings: Rs. 500 to 2000.
Doctors are mostly relying on dental practice financing to gather funds for their clinic set up. NBFCs like Bajaj Finserv make the procedure hassle-free by introducing pre-approved offers.
Refer to this above checklist to create an estimated budget to set up a dental clinic. Also, make sure to avoid the common mistakes that affect a doctor’s business to run your practice successfully.