The predictability of having a successful dental practice is now well understood by practice management experts. The extent to which a practice implements well-documented, state-of-the-art business systems and measures the performance of those systems is directly related to the level of success that the practice can achieve. Focus on the following four areas to lay the groundwork for an incredibly successful practice.
Understand your numbers
Dr. Roger P. Levin.
Many dentists are under the incorrect assumption that only their accountant needs to know and understand their numbers. This is far from the truth. To some extent, every member of the team should know production metrics, especially the doctor and office manager. Here are numbers that are essential for you to know:
- Production year to date
- Production month to date
- Production per day
- Production per hour
- Production per provider
- Production per patient
- Production per new patient
- Production/overhead ratio
These are the bare minimum. A practice that understands production at a deep level is a practice that will very quickly find opportunities to improve.
Although you may believe you're so busy that you cannot increase production, I believe that almost every practice has the potential to increase production by 30% to 50% in three years. Why? Because the scheduling system (which is the first system that needs to be addressed in most practices) is out of date.
It is actually keeping you from growing at this point by giving the false impression that the practice is so busy that you could not possibly increase production by this amount. Yet there are practices that do this every year. By changing the schedule using modern and advanced scheduling time management techniques you can create a production model that will allow you to grow.
Implement systems
Too many dental practices have team members who are excellent, dedicated people, but they do not have current modern systems to follow. The practice should have a documented, proven system for every business aspect of the practice.
Examples include contacting any patient without their next appointment every day, contacting any patient who is one day overdue for payment, reducing no-shows and last-minute cancellations, analyzing the schedule throughout the day to determine if it is on track to hit the daily production goal, and many others.
Unless you are producing in the 90th percentile or above, it is most likely that outdated or missing systems are a major factor holding you back.
Measure team performance
The only way to know if you truly have a great team is by measuring its performance. Many dentists judge their team's performance based on attitude and personality, which are always important, but not the best measurement of success.
In the end, dental practices are businesses, and they need to perform well financially to stay in operation. Otherwise, it is the dentist -- who spent years in school and residency, took on student loans, and invested in a practice -- who will be financially harmed.
Many do not think of themselves as financially harmed because they are making a satisfactory living today. But remember, what you can't save today for the future won't be there when you need it.
Your investment of savings today benefits from compound interest. Any savings you do not get today will not have the benefit of compound interest over time, which means the dentist has to work harder and longer to accumulate that portion of financial savings that will ultimately be necessary.
Become a great leader.
The importance of leadership to dental practice success cannot be overstated. It is often ignored, because dentists receive no training about leadership. Why is leadership so important? Because dental practices are not hiring Harvard MBAs to come in and do the job. Our dental teams are often made up of dedicated, hardworking, wonderful people, but they need direction and that is what leadership is all about. Leadership is about training the team how to act, what to do, and when to act.
Taking your practice to incredible levels of success is not nearly as difficult as you may think. It does take a bit of time, but applying the principles above will allow any dentist to move to the next level.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email [email protected].
The comments and observations expressed herein do not necessarily reflect the opinions of DrBicuspid.com, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.
