Why You Need a Practice Health Assessment
Mar 30, 2023
Every successful company or corporation tracks and monitors its numbers to know where they are failing and winning. Without this data, you won’t know if or when changes are needed. You might know your recall system isn’t working because you have holes in your schedule or perhaps nowhere to put patients but you don’t know what change is needed to make it successful.
You might know that you have no cash flow but are unsure how to get cash flow. You might know there’s no time to finish tasks like treatment follow up, sending statements, and follow up calls to patients but are unsure what to do to change that.
2 Numbers Every Dentist Must Know
1. Break Even Point
The BEP is the amount of money you need to deposit each month to cover all expenses and your own draw. It surprises me that so many dentists either A) don’t know what BEP means or B) they don’t know their own practice's BEP. Would you buy a house without knowing what your monthly mortgage payment is? Many dentists just hope they bring in more than they spend, and that is not a winning strategy. Hope is NOT a strategy.
2. Active Patient Count
The Active Patient Count determines when to expand, add another dentist, add another hygienist or even add more administrative support. There’s an actual formula to determine this. Many doctors guess when to add a hygienist or associate because they’re busy. Based on your A/P count, plus the new patients per month, you can now plan out the growth of the practice and team requirements.
How Does the Practice Health Assessment Help?
When you buy a house, you need a good inspection done to learn about the good and the bad before making such a large purchase. Your Practice Health Assessment is the inspection of your dental practice. Here are just some of the things included in your Practice Health Assessment:
- Correct number of hours of operation you should have
- Break Even Point
- Active Patient Count to determine growth
- Breakdown of production (doctor/hygiene and then further break down hygiene production into regular hygiene production and perio production)
- Collection percentage
- Hygienists’ revenue per hour based on production and hours worked
- How much treatment has been diagnosed but the patient has not yet moved forward with treatment
- Reviews leadership capabilities and team collaboration
- and so much more!
A review of your fees is completed and a 30+ page report with recommendations is provided to you. How well do you truly know your practice's numbers? The Practice Health Assessment is the necessary tool to be 100% confident in your numbers and running a successful dental practice.
To get your completely personalized Practice Health Assessment, contact us here.
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