Enhance profitability by improving existing processes and procedures

Key Takeaways:
  • Enhancing efficiency in your current dental practice operations can lead to substantial growth without the need for major investments.
  • Regular assessment of KPIs and coding practices can optimize reimbursements and overall practice health.
  • Working with a dental practice advisor can streamline financial management and drive sustainable success by maximizing existing resources.

 

When dental practice owners think about growing their practice, they often think of hiring associates, expanding the office or buying another location. They may also consider adding new clinical procedures or increasing the number of new patients they see. 

These are all good ideas and can certainly help you grow your practice. However, before you invest in these potentially costly options, which may or may not increase your profitability, consider the untapped potential of your current practice. By perfecting your existing processes, you could significantly boost your bottom line. 

Evaluate your Team & Resources 

Start by assessing your current processes. For example, if you are contracted with insurance carriers, are your coding practices setting you up for maximum reimbursement? Stay on top of coding changes and understand your insurance contracts to make sure you’re submitting correct claims. You may want to send your team to a coding seminar to learn best practices and ensure no billing mistakes are being made. 

Continue evaluating your practice health by investigating common key performance indicators. There are many KPIs you can examine, and if this is new to you, start with some of the most common ones that have the greatest impact on your practice growth, such as: 

  • Periodontal percentage 
  • Hygiene downtime 
  • Hygiene production 
  • Collection percentage 
  • Patient attrition rate 
  • Recare reappointment rate 
  • Provider production per hour 

Lastly, make sure the office performs an annual fee assessment. The NDAS Fee Report is a tool for determining how your standard fees compare to others in your ZIP code. Use this report to adjust your current fees every year. 

Optimize your Workflows 

Efficient dental practices can handle a high patient volume without overwhelming staff. Newer materials, modern sterilization processes and technology can improve efficiency and reduce chair time. Do your dental assistants often leave the room to find instruments or other materials? Does presenting a treatment plan feel cumbersome and clunky? Do your team members know how to perform patient handoffs? Creating standard operating procedures and checklists will help your team create a natural flow through every appointment. 

Analyze your Profit & Loss Statement 

Reducing unnecessary spending can quickly improve your bottom line. Even small adjustments to your profit and loss statement can make a significant difference. However, dental practice finances are much like household spending; sometimes, we need to take a moment to re-evaluate our budget and notice where our money is going. Without any oversight, spending will creep higher and higher. 

Consider these industry benchmarks for dentists: 

  • Team Expenses: 20-25% 
  • Dental Supplies: 6-8% 
  • Lab Costs: 5-8% 
  • Rent / Building Costs: 4-5% 
  • Marketing: 1-3% 
  • Office Supplies: 1% 

Do you know where your practice falls within these standards? If you are above or below these markers, consider talking to your dental accountant to evaluate changes. 

Prioritize Patient Care 

Running a dental practice demands time and effort. After a long day of seeing patients, it can feel like a heavy lift to spend time working on your business. While you can run reports and evaluate numbers yourself, working with a dental practice advisor can expedite this process and help implement innovative changes. 

Before you decide to increase your overhead expenses, contact an Adams Brown dental advisor to assess your practice’s health. Maximize your current resources to achieve smart growth and sustained success.