A dental practice is a big investment, whether you’re starting fresh or upgrading from an existing setup. The question is — how much does it actually cost?
In this article, we help you understand the cost of a dental clinic, including the various factors that drive costs up.
Dental clinic costs
Generally, the cost of a basic dental fitout starts at around $2,500 per square metre. However, this consists of only the most basic and cost-effective options. If your project is more complex or is a renovation project, it will typically cost more.
Setting up a new dental clinic raises various costs, depending on the condition of the building, size of the space, equipment sourcing, and more. To help understand the costs of setting up a new dental practice, we’ve outlined the key variables below and how they impact the costs.
To help you with setting up a dental practice, our free guide has everything you need to know, including patient acquisition, service principles, and how to promote a dental clinic.
Building vs renovating a dental clinic
When planning your new clinic space, you have three main options — building a new dental clinic from scratch, converting an existing house, or renovating an existing clinic.
Building a new dental practice
Building a new clinic is generally more efficient because you are starting from a blank canvas that can be customised to your needs. A newer practice building also reduces the risk of unexpected problems throughout the fitout. Explore our inspiration guide for ideas on building a new dental practice.
Converting a house into a dental practice
Converting an existing house into a dental clinic may seem cost-effective but often raises many unexpected costs and complications. These fitouts typically require a full internal demolition, stripping everything back to the bones for rewiring and plumbing. This process requires substantial work and can often reveal problematic structural issues.
Upgrading an existing dental practice
Another option is to buy and upgrade an existing clinic to suit your own needs. This gives you the opportunity to expand your services and personalise the fitout, without having to start from scratch. With this option, some of the service lines and structural work will already be completed, reducing project time and costs.
However, there are some additional consideration and dangers to be aware of when purchasing an established clinic. To decide if this option is best for you, read our full article answering the question, should you buy an existing dental practice?
Lease vs Buy
Wondering whether you should buy or lease your space? Ultimately, the best option will depend on your priorities and budget but buying does give you more design flexibility and the opportunity to build real estate equity. However, you will be responsible for all repairs, renovations, and maintenance.
On the other hand, leasing your space enables you to invest more in your equipment and save on property maintenance costs. However, when leasing, you cannot build equity and you may be limited by the existing building configuration.
For more information and recommendations, read our article answering the question, when is the right time to own a dental clinic?
Dental equipment costs
Dental equipment costs varies considerably, depending on the model, quality, and specialised features. For example, a basic dental chair may cost $30k while a high-end specialised chair could cost over $100k.
Once you consider the prices for sterilisation tools, compressors, lighting, suction, and handheld tools, you could spend anywhere from $150k to $500k on your equipment alone.
Financing a dental practice
When financing a dental practice, you can use savings, a bank business loan, or a specialist healthcare loan. We recommend opting for a healthcare-specific lender like DLL, as they are more experienced in the dental industry and understand your medical clinic requirements much better than a bank.
How much does a dental fitout cost?
As a baseline, a basic fitout without equipment starts from $300 to $350k. On the other end of the scale, you can get an architectural fitout without equipment starting from $500k.
With many variables in play, every fitout poses a different set of criteria and should be taken case by case. Fortunately, our team will work closely with you to find the most cost-effective approach that optimises your new clinic. As part of your free site assessment and quotation, you’ll also receive a cost breakdown, risk assessment, project timeline, and more.
To get a personalised quote for fitting out your practice, get a free assessment from Dentec or request a quote on our website. Simply answer a few questions about your project and we’ll tell you what to expect.
