Industry benchmarks for Dental and Medical Practices
Dental and medical practices recover new-patient acquisition cost in about 4 months, and the exceptional lifetimes make this one of the strongest LTV:CAC models anywhere. CAC runs $120 to $400 per new patient across local search, paid ads, and referral programs, with the higher end typical in saturated metro markets. Amortized monthly production per active patient sits at $60 to $150 at 55 to 68 percent margin after labs, supplies, chair time, and hygienist cost. At $220 CAC against $55.80 in monthly gross profit, payback is 3.9 months, and patients often stay for 5 to 10 years.
The recall and reappointment rate is the retention lever, and it is largely an operational problem rather than a marketing one. Practices that schedule the next hygiene visit before the patient leaves the chair retain far better than those relying on reminder texts three months later, and every lapsed patient is a full reacquisition cost. Case acceptance is the second lever, since the same patient base produces very different revenue depending on how treatment plans are presented. Because lifetimes run years, cap LTV at 5 years for planning rather than extrapolating a 1.5 percent monthly attrition rate indefinitely.
Frequently asked questions
CAC Payback Estimator for Dental and Medical Practices, answered.
How do I calculate monthly revenue for a patient who visits twice a year?
Divide annual production by twelve. A patient producing $1,080 a year is $90 per month for payback purposes, even though the actual visits are lumpy.
What should be in a practice gross margin?
Labs, supplies, and the clinical labor directly tied to delivering care, including hygienist time. Fixed overhead like rent and front desk sits below the line.
Why is the target ratio 5x rather than 3x?
Because patient lifetimes are long and predictable, healthy practices should clear a much higher ratio. Falling below 4x usually signals either overpriced advertising or a leaking recall system.