Ask the Experts: Practice Growth

At the start of a new year, what is the most important mindset to hold regarding practice growth?

Roger P. Levin, DDS

There's never been a more important time for practices to increase production than the one we're in right now. Unlike in the past when increased production was primarily desired to increase doctors' incomes, today, practices may require greater production just to overcome the significant economic challenges that they face and break even. During the last 18 months, practice production has remained relatively flat; however, overall inflation has grown 6% to 8%. This means that practices that have not increased production are now losing $6,000 to $8,000 on every $100,000 of production to inflation. For those with $1 million in yearly revenue, they could lose $60,000 to $80,000 dollars of real income over the course of a year.

Implementing strategies to improve scheduling efficiency, decrease no-shows, raise fees, negotiate with insurance companies, reactivate patients, and ensure that hygienists are trained to explain all available services to patients are a few of the best and most dependable methods to increase production. To assess the success of these strategies, there are key statistics that every practice owner needs to track. In addition to total practice production, the four most important statistics to track are production per patient, production per service, production per provider, and production per new patient.

By actively monitoring these key indicators, dentists will be able to guide their teams in achieving practice goals that include expectations for higher production. Production is by far the most important factor in the success and growth of a dental practice. Adequate production enables practices to perform at high levels while generating sufficient revenue to overcome higher expenses as well as profit to reinvest in the practice or to take as income.

Questions can be submitted to asktheexperts@broadcastmed.com

About the Author

Roger P. Levin, DDS, is the CEO and founder of Levin Group, a leading practice management consulting firm that has worked with more than 30,000 practices to increase production. A recognized expert on dental practice management and marketing, Levin has written 67 books and more than 4,000 articles and regularly presents seminars in the United States and around the world.