Getting Down to Business: Boost Your Dental Practice Financials
Posted on 5/11/2018 by Angela Spinks
I have written in this space about the importance of managing the performance of your dental practice through analysis of cold, hard empirical data. Facts rule. Numbers don’t lie.
At the end of the day, after you have demonstrated clinical excellence, professional achievement and patient satisfaction, the success of your business comes down to financial viability. I may be preaching to the choir: Rarely if ever do I come across a Dentist or an Office Manager who is not interested in improving productivity and profitability. Yet the nagging questions persist:
What should we be measuring?
Where do we start? Where do we sit today? Why?
How do we accurately monitor results and progress?
What is the industry benchmark?
What specific steps can I take to improve and grow?
For us at ABELDent, the answers unfold within our Practice Management By Objectives methodology. We have developed a series of KPIs ”“ Key Performance Indicators ”“ to guide your progress. The foundation of the program is the fact that all the data you need to identify and monitor your vital numbers resides within your existing ABEL software database; it’s as simple as generating the relevant reports and performing some quick calculations.
Here are eight quantifiable measures that will get you well on your way to analyzing, managing and ultimately improving your financial performance.
If you find that your own numbers are below industry benchmarks, consider some of these short- and long-term initiatives:
Improve cash flow
- Be clear in your communication with patients regarding financial terms and guidelines. Always inform before you perform
- For costly procedures, ask for a deposit or upfront payment
- Offer financing plans; limit payment plans to 60 days
- Accept credit and debit cards
- Use electronic claim processing
- Provide statements and/or do regular collections follow-ups
- Run frequent, regular A/R reports
- Track patient payment patterns and address any issues proactively
- Focus on higher end dentistry
- Monitor and improve case acceptance
- Pursue outstanding treatment recommendations
- Raise fees
- Source less costly supplies, equipment and services
- Evaluate all purchases based on ROI
- Increase productivity of staff through training
Build your patient base
- Ask your patients for referrals
- Initiate or reinforce marketing efforts
- Track the effectiveness of each marketing activity
I hope this detailed information is helpful, or that at least it gets you thinking about delivering more focus on your bottom line. Financial KPIs are just one of the facets of the strategic practice management we champion. I invite you to continue this conversation by attending one of our upcoming webinars or by reaching out to our team at any time.
I welcome your feedback. I can be reached at any time at 1-800-267-ABEL (2235) or simply complete the form below and I’ll respond as soon as possible.
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