Medical derm pays the bills. Cosmetic derm should be paying for the vacation home.
If you cannot see separate P&Ls for your medical and cosmetic sides, you are flying blind on both. We fix that.
A 4-minute test your accountant hopes you skip.
At a glance
Is This Right for You?
This service is for dermatology practice owners who recognize these problems:
Need strategic financial leadership? Our Fractional CFO service for dermatology practices may be a better fit.
What's Included
How We Work With Dermatology Practices
Dermatology-specific accounting that goes beyond reconciliation.
Medical vs Cosmetic Revenue Separation
- •Dual P&L structure (medical and cosmetic)
- •Shared overhead allocation between medical and cosmetic
- •Cosmetic service margin analysis by procedure type
- •Sales tax compliance for cosmetic services
Cosmetic Inventory & Product Tracking
- •Botox/filler unit cost tracking and waste analysis
- •Laser consumable cost per treatment
- •Skincare retail inventory management and margin tracking
Provider-Level Economics
- •Revenue and margin per provider (MD vs PA/NP)
- •Mohs case cost analysis (staff, supplies, time)
- •Cosmetic procedure profitability by provider
- •Supervision cost allocation for mid-levels
Membership & Package Accounting
- •Deferred revenue tracking for prepaid packages
- •Membership program profitability analysis
- •Breakage rate and utilization tracking
Results
What Dermatology Practices Experience
| Metric | Typical Outcome |
|---|---|
| Cosmetic margin improvement | $183,000 annually from cosmetic margin analysis, pricing corrections, and filler waste reduction |
| Mohs revenue recovered | $89,000 from coding corrections |
| Mid-level restructuring | Both providers profitable within 4 months through schedule optimization |
Case Study
See The System In Action
3-physician dermatology practice with cosmetic suite, single location. The practice was generating $4.2M in total revenue but the owner could not explain why net income had been flat for three years while revenue grew 18%.
What we found:
- •Cosmetic services were generating 35% of revenue but only 19% of profit due to untracked filler waste averaging 12% per vial and underpriced laser treatments
- •Mohs cases were being under-coded. 23% of multi-stage cases billed as single-stage, leaving an estimated $89K per year on the table
- •Two mid-level providers were generating $280K each in revenue but costing $310K each when supervision time, benefits, and overhead were properly allocated
- •The membership program had 340 members but a 72% utilization rate meant the practice was giving away $61K in unused services annually
The results
$183,000 annually from cosmetic margin analysis, pricing corrections, and filler waste reduction
Cosmetic margin improvement
$89,000 from coding corrections
Mohs revenue recovered
Both providers profitable within 4 months through schedule optimization
Mid-level restructuring
“We were growing revenue and shrinking profit. Sorso showed us exactly where the margin was leaking — it was the cosmetic side, which we assumed was our cash cow.”
— Practice Owner, Southwest
Common Questions About Accounting for Dermatology Practices
Don't pay for reports. Pay for progress.
Take the 4-minute financial assessment—and find out if your books are helping or hurting your dermatology practice.
The test your accountant hopes you skip.