How much money do medical practices actually earn? A statistic reveals the variations across different medical specialties. Interestingly, more than a quarter of their revenue doesn't come from health insurance.
Here's How Much Doctors Earn
In Germany in 2021, medical practices averaged revenues of €756,000. However, the picture is skewed by very high figures in some practices, according to the Federal Statistical Office (Destatis). When considering the median value, half of all medical practices reported revenues of up to €464,000, as reported by the statistics agency.
Profit in Medical Practices
The average revenues of €756,000 were accompanied by average expenses of €420,000, including personnel salaries, according to Destatis. This resulted in a net profit of €336,000 per practice on average. However, the median net profit for half of all medical practices was at most €233,000. It's important to note that net profit is not synonymous with profit, as it doesn't account for factors like the practice owner's retirement or health insurance.
Dentists Earn Less
Dentists are considered separately in the statistics. They earned more on average (€791,000) but also had significantly higher expenses (€510,000). Consequently, the average net profit for dentists was €55,000 lower than that of all medical practices, amounting to €281,000.
Number of Employees in Medical Practices
Psychotherapists are not included in the general statistics for medical practices. According to Destatis, they reported average revenues of €127,000 in 2021 with a net profit of €91,000. This can be attributed to the smaller size of these practices, with an average of 1.8 personnel. In comparison, medical and dental practices had an average of 9.8 personnel each. The statistics also considered Medical Care Centers.
Breakdown of Doctors' Revenues
The majority of medical practice revenues came from services billed to health insurance, accounting for 71.7 percent, according to the statistics. Private patient billings contributed 24.5 percent, and 3.8 percent came from other self-employed medical activities.
Dentists Earn More from Private Services
The breakdown of income was quite different for dentists. They earned only 52.7 percent of their revenues from health insurance, while a significantly larger portion came from private services. Psychotherapists, on the other hand, received 90.1 percent of their income through insurance billing, as per Destatis.
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