Benchmarks
Dermatology financial benchmarks
How does your derm practice compare? Key metrics cited to specialty association data and cross-checked against Sorso client engagements.
Benchmarks are published industry ranges and Sorso-observed ranges from our client engagements. They are directional, not prescriptive — use them as a starting point for diagnosis, not a target.
Data reflects 2024 reporting cycles where available, with 2023 data used when a newer survey has not yet been published.
Profit Margin
33%
Range: 26%–40%
Overhead Ratio
67%
Range: 60%–74%
Revenue / Provider
$800K–$1500K
Annual range
Collection Rate
94%
Range: 92%–96%
Denial Rate
6.5%
Range: 5%–8%
A/R Days
26 days
Range: 20–35 days
Source: Industry benchmarks compiled from MGMA, specialty association surveys, and practice management databases. Updated 2026.
How your practice compares
Where the money goes
| Category | % | Description |
|---|---|---|
| staffing | 46% | Clinical and administrative staff wages, benefits, and payroll taxes |
| rent | 9% | Facility lease, utilities, and maintenance costs |
| supplies | 10% | Clinical supplies, office supplies, and consumables |
| equipment | 12% | Equipment leases, maintenance, and depreciation |
| marketing | 7% | Digital advertising, website, patient acquisition |
| insurance | 6% | Malpractice, general liability, and property insurance |
| Other | 10% | IT, professional fees, continuing education, miscellaneous |
Payer mix
Typical payer distribution for dermatology practices. A balanced payer mix reduces dependency on any single source and improves revenue predictability.
Collection rates by payer
What top performers look like
Profit Margin
43%+ (AAD Practice Benchmark Survey, 2024)
Collection Rate
97%+ (MGMA DataDive: Dermatology, 2024)
Denial Rate
< 4% (AAD Practice Benchmark Survey, 2024)
A/R Days
< 18 days (MGMA DataDive: Dermatology, 2024)
KPIs specific to dermatology
| KPI | Benchmark | Description |
|---|---|---|
| Cosmetic Revenue as % of Total | 20–40% (AAD Practice Benchmark Survey, 2024) | Share of revenue from elective cosmetic procedures; higher-margin cash-pay work |
| Patients per Provider per Day | 30–45 (Dermatology Times Practice Management, 2024) | Daily patient throughput per dermatologist; high volume is key to profitability |
| Path Lab Cost per Specimen | $8–$15 (AAD Practice Benchmark Survey, 2024) | Cost of outsourced pathology per biopsy; in-house labs dramatically improve margins |
| Mohs Revenue per Case | $1,200–$2,000 (CMS Physician Fee Schedule; AAD, 2024) | Average revenue per Mohs surgery case; a major profit driver for surgical dermatology |
From Sorso
In the dermatology practices Sorso has advised, cosmetic mix is the single biggest driver of margin spread — every 5 points of cosmetic share typically adds 2–3 points of EBITDA.
Sources
- American Academy of Dermatology (AAD) — Practice Benchmark Survey (2024)
- Dermatology Times — Practice Management data (2024)
- MGMA DataDive — Cost & Revenue: Dermatology slice (2024)
- CMS Physician Fee Schedule (Mohs/pathology codes, 2024)
Data reflects the latest available specialty association and MGMA reports through 2025; re-verified April 2026.
Founder of Sorso. 18 years in corporate finance. Managed a $450M loan portfolio before building a fractional CFO firm exclusively for healthcare clinics.
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