Rev Up Your Dental Practice’s Profitability By Focusing On the Right KPI’s
Do you often wonder why you’re unable to bring more patients to your dental practice and increase your earnings? Do you often wonder where you went wrong in running your dental practice? Let me say one thing, and don’t hate me for it. It’s partly your fault! How? Because no matter how much skill and experience you have as a dentist, you haven’t been taught or trained to run an economically viable and profitable business at your dental school.
What’s the Solution?
So, how can the improve the statistics of your dental practice? One way would be to go join a business school so that you can learn all the strategies involved in running a successful practice. But who has time for that? Another option would be to find a highly experienced CPA manager who is an expert in data and analytics. You get them to run your practice, but that would be way too expensive.
Where Does the Problem Lie?
According to many dental experts around the world who are running a successful dental practice, the basic reason behind poor practice statistics and earnings is that most dentists and dental office managers either are not focusing on the key performance indicators (KPIs) to run their business or are not using the right indicators.
What are Key Performance Indicators (KPIs)?
KPI’s are basically numbers and statistics that provide information about the profitability, efficacy, and efficiency of a dental practice. In short, KPI’s provide data about how well your practice is doing on a daily, weekly, monthly or yearly basis. One of the most common reasons for the failure of most dental practices is ignoring what your practice’s KPI’s are telling you.
Important KPI’s For Running A Successful Dental Practice
So now that we are familiar with KPI’s, the next question you would ask is “which KPI’s are important for determining the success of my practice?” well, here are some of the most important KPI’s that provide a clear and detailed picture of how well your practice is doing:
• Production – Know how much your practice is producing on an hourly, daily, weekly and monthly basis. This KPI provides a larger picture about how your dental practice is/was doing during a particular time in the year. You can then use this data to compare the production of the current year with the previous year.
• Collections – This provides information about what percentage of your charged fees have been paid and collected. If your practice is not collecting more than 98% of the charged fees, then you need to reconsider your policies regarding money collection.
• Profits – The profit of a dental practice refers to the total revenue earned by a practice, after the operation and utility costs have been deducted. For your practice to be successful, you should make sure that your practice’s profits in the current year are greater than the previous year.
• Overhead – In a thriving dental business, the overhead costs should be less than 59% of the total earnings. If that is not the case, you need to reduce your expenditure so that you can improve your profits.
• CASE Acceptance – This KPI measures the percentage of patients who accept the treatment recommendations offered by the dentist. A practice where at least 90% of the patients accept dentist recommendations for treatment is showing positive signs of improvement.
• New Patients – This is one of the most important KPI’s. If a practice is receiving new patients each week or month, it indicates that this practice is popular, and new patients feel safe to get their treatment done there. If you receive 10-15% more new patients each year, then your statistics are good.
• Dentist Vs Hygienist Production – If your practice also has a dental hygiene department, then you should also consider the productivity of both the dentist as well as the hygienist. Of course, the earnings of the hygienist will be much less compared to the dentist, your statistics are good if the dentist is producing about 75%, while the hygienist produces about 25% of the total business earnings.
• RE-Call vs Retention – An essential performance indicator for a dental practice is the number of patients who have been scheduled for regular checkups and hygiene treatment. Even more important is the percentage of patients who show up for their appointment. Your practice manager should ensure that at least 98% of the scheduled patients turn up for their appointment, however, the national average is 74%.
• MISSED APPOINTMENTS – Cancellations are never good for any type of business, especially dental practices. If the more than 1% of your patients are canceling or not coming for appointments each month, you need to seriously review your practice standards as well as the level of comfort provided to the patients.
• Charged Vs Insurance Production – There should be a carefully maintained balance between the ratio of production made through insurance covered patients, and the patients who do not have insurance. Try to adjust this KPI in your favor.
Regularly Reviewing your KPI’s; Isn’t That Tiring? DAILY MORNING HUDDLES
Whether you manage your own practice or you have hired a practice / dental office manager, digging through all that paperwork and regularly reviewing the KPI’s of your practice manually, is simply not possible! So, what can you do about it? In my opinion, the smartest way to effectively manage your practice is to use Practice Intelligence software. How will a software help your business grow? Let’s take a look!
Smart Dentist Dashboard Software is Alive and Well
Dental intelligence software works with a dental practice manager. Many office managers have the task to run KPI reports, however, they have 10 other hats to wear at the same time, and let’s face it, data and analytics are exhausting. Combine that with human error, and it spells out disaster. A smart dentist dashboard will provide you with real-time information about what’s going on around your dental practice. Practice intelligence software updates your practice’s statistics every 15 minutes on AUTO PILOT.
Here’s What You Can Achieve with Practice Intelligence Software:
• Patient Data at Your Finger Tips – Imagine having to wait 12 hours or many days before your practice manager could dig out records of your patients! Well, thanks to the Smart Dentist Dashboard you can get these records in a matter of seconds! Every real-time detail about your practice is just one click away.
• Know the “Pulse” of the Practice: Are you aware of everything that happens in and around your practice? From cash flow to office’s productivity, and from canceled appointments to the number of new patients welcomed each month, every piece of information is at your fingertips! It provides information about all the KPI’s that you need to be aware of while running a successful dental business. Also, the raw data provided by this software can help you in getting any type of information you need about your practice.
• Focusing on Just the Right Key Performance Indicators – Monitoring these five KPI’s that can help you increase the revenue and reputation of your business. These KPI’s are:
1. Recall and retention
2. Perio production and stats
4. Intra-oral images
5. Case Acceptance
• Lesser Workload for the Office Manager and Dentist – Your office manager will not have to work as hard in taking care of the KPI’s when most of the monitoring is being performed automatically every 15 minutes. So, what that basically means, is that your practice manager can utilize the saved time to ensure the quality of services and the comfort of your patients. It also means that the dentist would save dozens of hours not having to go through tons of paperwork each day since all the information can be viewed digitally on a computer, tablet or smartphone.
• Improved Performance – When the members of your dental team know that you are aware of your practice’s stats in real-time, they will work more productively and efficiently. Also, you can significantly increase the revenue of your practice by 25%.
Are you ready to embrace the digital world? DDSgeeks provides you the opportunity to work smarter while still being able to learn more! Feel free to visit us at http://ddsgeeks.com/. A highly productive and profitable business is just one step away from you!