What Is Patient Acquisition Cost (PAC) in a Dental Practice?
Patient Acquisition Cost (PAC) is the average amount of money a dental practice spends to attract a new patient.
It includes marketing spend, advertising costs, referral incentives, and sometimes staff time spent on lead management — divided by the number of new patients acquired in the same period.
Why Does Patient Acquisition Cost Matter for Dental Practice Owners?
New patients are essential for growth, but if acquisition costs are too high, they erode profit margins.
- High PAC → marketing is inefficient, profits squeezed
- Low PAC with low retention → wasted spend if patients churn quickly
- Balanced PAC with strong retention → sustainable long-term profitability
Example:
- Monthly marketing spend: £5,000
- New patients acquired: 50
- PAC = £100 per new patient
If average first-year patient revenue is £300, this may be viable. But if retention is poor, the cost outweighs the benefit.
How Is Patient Acquisition Cost (PAC) Calculated?
PAC=Total Marketing SpendNew Patients Acquired\text{PAC} = \frac{\text{Total Marketing Spend}}{\text{New Patients Acquired}}PAC=New Patients AcquiredTotal Marketing Spend
What Influences PAC in Dentistry?
| Factor | Impact |
| Marketing Channel | Google Ads, Facebook, referrals all have different PACs |
| Treatment Mix | High-value cases (implants, Invisalign) can justify higher PAC |
| Geography | Urban practices face higher marketing competition |
| Website & Conversion Rate | Strong recall and enquiry follow-up reduce PAC |
| Retention & LTV | A high PAC is only justified if patients stay and generate lifetime value |
How Does DentPulse Track Patient Acquisition Cost?
| Feature | Function |
| PAC Calculator | Tracks marketing spend vs new patients in real time |
| Treatment Profitability Index™ | Ensures high PAC is offset by high-value treatment acceptance |
| Patient Lifetime Value (LTV) Link | Compares cost of acquiring vs value of retaining |
| OWS™ Overlay | Connects acquisition cost to long-term owner wealth |
DentPulse ensures PAC is seen not as a marketing vanity metric — but as a profitability driver.
DentPulse Tip™
“High PAC is not the problem.
Low retention after high PAC is the problem.”
Related Glossary Terms
- Patient Lifetime Value (LTV) – balance PAC against long-term revenue
- Patient Retention Rate – keeps PAC investments profitable
- Treatment Profitability Index – margins on acquired patients’ treatments
- Hybrid Revenue Model Forecasting – balances new patient mix across NHS, private, plans
- Profit-to-Pocket™ – ensures acquisition spend translates into safe take-home
Glossary Summary Table
| Term | Meaning |
| Patient Acquisition Cost (PAC) | Average cost to attract a new patient |
| Purpose | Measure marketing efficiency and profitability of growth |
| DentPulse Advantage | Tracks PAC against LTV, treatment margins, and owner wealth |
