Benchmarks
Dermatology financial benchmarks
How does your derm practice compare? Key metrics cited to specialty association data and cross-checked against Sorso client engagements.
These ranges are directional, not prescriptive — a starting point for diagnosis, not a target. Where a figure comes from a published source, that source is linked on the page; where it does not, it reflects Sorso's own compiled experience.
Linked sources carry their own publication dates, shown with each citation. Unlinked ranges were last reviewed August 2026.
Profit Margin (before owner pay)
27%
Range: 25%–30%
Overhead Ratio
73%
Range: 70%–75%
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%+
Collection Rate
97%+
Denial Rate
< 4%
A/R Days
< 18 days
KPIs specific to dermatology
| KPI | Benchmark | Description |
|---|---|---|
| Cosmetic Revenue as % of Total | 20–40% | Dermatology share of revenue from elective cosmetic procedures (benchmark 20–40%); higher-margin cash-pay work that lifts overall EBITDA materially. |
| Patients per Provider per Day | 30–45 | Daily patient throughput per dermatologist; high volume is key to profitability |
| Path Lab Cost per Specimen | $8–$15 | Cost of outsourced pathology per biopsy; in-house labs dramatically improve margins |
| Mohs Revenue per Case | $1,200–$2,000 | 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.
Go deeper on derm
Sources
Where a published source states a figure, it is linked above. Ranges without a linked source are Sorso's own compiled estimates from client work and secondary industry reporting — they are not published association benchmarks, and we would rather say so than imply a citation we cannot show you.
Founder of Sorso and a CFA charterholder. Before Sorso, Stan spent 19 years in corporate finance at institutions including UniCredit and Société Générale — managing a $450M loan portfolio and making senior partner at a major mezzanine lender by 29 — then built a fractional CFO firm exclusively for outpatient healthcare clinics.
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