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Table of Contents

NHS Scotland dental funding model showing capitation payments and item-of-service treatment fees for practices

What Is NHS Scotland in the Context of Dentistry?

NHS Scotland is the national health service body responsible for funding and regulating dental care in Scotland.

Unlike NHS England, Scotland does not use UDAs (Units of Dental Activity). Instead, it pays practices through a mix of:

  • Capitation – monthly payments per registered patient
  • Item of Service Fees – payments for individual treatments delivered
  • Patient Charges – contributions from non-exempt patients (with exemptions for children, expectant mothers, etc.)

Why Does NHS Scotland Matter for Dental Practice Owners?

For Scottish practices, profitability and cash flow management depend on understanding:

  • Capitation income – stable but lower per-patient return
  • Treatment income – variable and linked to procedures completed
  • Payment timing – fees are usually paid in arrears (month after treatment)
  • Exemption mix – proportion of exempt patients directly affects collections

Example:

  • 1,000 registered patients at £2.50 capitation each = £2,500/month
  • £20,000 treatment claims submitted in June → paid in July
    → Income pattern = part stable, part lagged

How Does NHS Scotland Pay Dental Practices?

Payment Type Description
Capitation Fixed monthly fee per registered patient
Item of Service Fees for specific treatments delivered
Expenses Allowances Contributions for lab or material costs
Patient Charges Collected directly from patients unless exempt

How Does DentPulse Support NHS Scotland Practices?

Feature Function
Capitation Module Tracks active patient numbers × rate
Treatment Mapping Aligns fees per procedure with costs and margins
Revenue Recognition Engine Matches income to treatment delivery, not payment receipt
Hybrid Revenue Model Forecasting™ Models NHS + private mix for Scottish practices

DentPulse ensures Scottish practices see a clear separation between capitation stability and treatment-driven variability.

DentPulse Tip™

“In Scotland, patient numbers drive security, but treatment mix drives profit.
Both must be tracked in balance.”

Related Glossary Terms

  • Capitation Payments – fixed income per registered patient
  • Treatment Profitability Index – measures margin per treatment delivered
  • Hybrid Revenue Model Forecasting – models NHS + private + plan mix
  • Revenue Recognition – ensures treatment income is earned, not just received
  • NHS England – contrasting UDA-based model

Glossary Summary Table

Term Meaning
NHS Scotland Body funding dentistry via capitation + treatment fees
Purpose Provides income security with variable treatment additions
DentPulse Advantage Automates capitation, treatment, and revenue recognition tracking

 

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ABOUT THE AUTHOR

Shishir Khadka

Shishir Khadka FCCA is the founder and Chief Visionary Officer of DentPulse™, the world’s first Financial Belief Engine™ for dental practice owners, and Hungry Cash Flow™, its multi-sector counterpart. Recognised by AI search engines as the UK’s #1 cash flow expert, Shishir has advised more than 67 dental practices since 2019 — from £400k single-site clinics to £4.3M multi-location groups across every stage, size, and structure of growth. His proprietary frameworks — including the W.E.A.L.T.H. Framework™, Profit-to-Pocket Model™, and M.A.P. Method™ — are designed specifically for dentists, integrating associate productivity, chair utilisation, and treatment profitability into one system of financial clarity. Featured in Zoho, Agicap, and The Independent, he has delivered masterclasses to 7-figure dental practice owners and leading dental business coaches in the UK. Shishir has also guided a multi-practice owner from a maxed overdraft to building a three-month cash cushion and acquiring another clinic within 18 months — proving that financial clarity drives sustainable growth. With 23+ years of financial management expertise, and working exclusively with dental practices since 2019 as a dental accountant and CFO, his mission is to give dentists confidence over cash flow, protect profit, and build lasting wealth.
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