German medical practices experienced an average revenue of €804,000 per practice in 2023, according to data released by the Federal Statistical Office (Destatis). This represents a marginal increase of 1.0 percent compared to the previous year (€796,000 in 2022).
However, alongside revenue growth, expenses for these practices also rose considerably. Average expenditures per practice increased by 5.8 percent, climbing from €466,000 in 2022 to €493,000 in 2023. This increase occurred against a backdrop of rising consumer prices, which saw a similar increase of 5.9 percent year-on-year.
The net income, reflecting the overall financial performance of the practice, paints a more nuanced picture. The average net income per medical practice declined by 6.3 percent in 2023, falling to €310,000 from €331,000 in 2022. Statisticians note that these average figures are significantly influenced by practices with exceptionally high revenues, expenses and net incomes. A median assessment reveals that half of all medical practices saw a net income of no more than €219,000.
It’s important to understand that the net income figure does not directly equate to the personal income or profit of the physicians themselves. It represents a snapshot of the practice’s financial results and excludes factors like the cost of practice acquisitions or expenses related to retirement, disability, survivor and health insurance for the practice owners.
Dental practices demonstrated a more robust financial performance in 2023, with average revenues increasing substantially by 13.2 percent to reach €894,000. While expenses for dental practices also increased significantly – up 11.7 percent – the average net income per practice saw a considerable rise of 16.9 percent to €284,000.
Psychotherapeutic practices, conversely, experienced a decrease in average revenue. Average revenues for these practices declined by 5.5 percent to €121,000. However, a reduction in average expenses by 12.5 percent to €35,000 resulted in a modest decline in average net income of 2.3 percent, bringing the result to €86,000 per practice.
The staffing levels within these practices varied across the sectors. In 2023, the average number of personnel, including owners, in psychotherapeutic practices decreased from 1.9 to 1.7. A slight decrease was also observed in general medical practices, falling from 9.9 to 9.7 employees. Only dental practices witnessed a marginal increase in the average number of personnel, rising from 10.0 to 10.1.