Money Matters: Improving Your Bottom Line
Just as it’s important to consistently track your dental marketing results, it’s also crucial to schedule a regular checkup of your bottom line. Make sure your practice is not only profitable, but that your production rate and financial decisions are still in line with your long-term goals – whether they involve expanding to new locations, early retirement, or comfortably continuing on course
No matter what your practice objectives are, money matters, so we’ve listed eight small but substantial ways to improve your bottom line and boost profitability.
1. Calculate Production | No matter what business you’re in, it’s essential to establish and track key performance indicators (KPIs). There are several vital metrics to consider, such as overhead, collections, new patient conversion, attrition, and staffing costs, but production is one of the most important for a dental practice. Briefly, monthly production equals the number of visits multiplied by the average revenue generated per visit.
By determining that formula for your practice, it’s easier to see what needs to be increased – higher margin treatments, hygiene, etc.
2. Reduce No-Shows and Cancellations | Gaps in a practice’s schedule due to patients who cancel or don’t show up can be costly. Be proactive to minimize production loss with automated systems, missed appointment fees, or a cancellation waitlist.
3. Patient Retention | Dental patients move on for a variety of reasons but it’s ultimately more cost-effective to retain existing patients than to acquire new ones. Determine what you can do differently to encourage patients to return, such as improve customer service, add loyalty programs, or offer more flexible hours.
4. Improve Case Acceptance | In addition to helping patients achieve better oral health, an increase in treatment plan acceptance can boost your revenue stream. Integrate a system of good rapport, communication, education, and teamwork – and don’t forget to follow through!
5. Streamline Administration | Staffing shortages are still a concern in the dental industry so it’s vital to streamline and automate administrative tasks where possible, e.g., appointment reminders, insurance claims, and patient portals. Developing a systematic approach to billing and collections can also ensure prompt payments for services.
6. Invest Wisely | Strategize thoughtfully when investing in your practice, whether upgrading dental technology, increasing salaries, or continuing education. State-of-the-art equipment can improve efficiency and patient satisfaction. Paying your strongest team members well can prevent costly turnovers. Updating your education will enhance your skills and attract patients seeking advanced treatment options.
7. Add New Services or Products | Consider offering a broad range of high-margin services, such as cosmetic dentistry, orthodontics, dental implants, or IV sedation. Look at providing professional-grade dental products like whitening kits that patients may not have access to in a retail setting.
8. Hire Experts | You’ll find great value in hiring the right people so that you and your team can focus on the clinical side of dental care. In addition to a financial expert, it can also be beneficial to use a third-party professional for insurance management and ideally, a professional marketing group or consultant.
Improving your bottom line often involves a combination of strategies and regular assessment of your practice’s financial performance. The same mindset applies to your marketing which is why RAMP has served the dental industry for more than 20 years, providing advanced technology and exceptional marketing know-how. Schedule a free strategy session today and let us show you how to get the most out of your investments.
