Hope your New Year is off to a great start!
It’s time to start afresh… to apply all the unforgettable lessons learned from last year… and to start implementing our plans for this spin around the sun.
One thing that will definitely help elevate whatever goals you have for your business — is profitability — pure and simple.
Would you like to learn 65 ways to improve profitability for your practice, dental group, or DSO?
(I’m guessing your answer is yes.)
You’re in luck… just in time to help you start 2021 off on the right foot, we’ve culled PROVEN tips, strategies, and tactics, from having worked with 100s of successful dentist-entrepreneurs.
Here are just some of the top ones:
[Category: Patient Visits] # 6 Increase your capacity for more visits: Many DSOs are successful because they are flexible — willing to explore adding treatment rooms; adding another doctor; adding/Increasing hygiene days; and/or increasing days open. Increasing capacity is not without challenges but if you want to grow in revenue, consider the lowest hanging fruit — increasing hours is probably your best ROI.
[Category: Care Per Visit] # 15 Specialists in office: If your practice does not offer certain treatments, such as third molar extractions, have specialists come to your office one day a week. This eliminates the need to refer patients out and keep profits in-house. It’s the perfect opportunity to retain your patient: “I have a specialist who can do the treatment here.”
[Category: Revenue Cycle] #29 Review Claim Denial Trends: Consistently review claim denial trends and adjust procedures accordingly. Properly tracking what is being denied by insurance will eliminate the procedures that are not being paid for. It’s also important to call the insurance and ask why they are denying the procedure.
[Category: Practice Expenses] # 33 Doctor Compensation: Since associate compensation is the biggest expenditure, it needs to be standardized to get the most value for the practice. Having different associate contracts and differing ways of calculating pay throughout the organization can be a pain point for scaling. Doctor motivation can slip. Take the time to standardize associate pay and contract options. Consider this formula: Base + Production/Collection Bonus.
[Category: Practice Expenses] # 44 Labs/ Supplies Purchasing Mindset: Always have 2 suppliers. You can play them off each other. Find one that is high quality and price and one that is lower quality and price. For example: say to the higher quality: “X has lower prices” and to the lower Quality: “Y has better quality”. it actually drives the expenses lower overtime and you get the best quality out of the relationship.
[Category: DSO Expenses] # 57 Centralized Services: Charge a fair market rate to practices to use centralized services (billing services, call center, and other centralized services). Then manage the expenses to be under the market rate so that centralized services can become a profit center. Shop around for the centralized service providers and compare to get the most bang for the buck.
These tips will help you tackle expenses, reduce overhead, improve cash flow, increase revenue all yielding you more profit.
Who doesn’t want more profit?
Implement even just a few of these and you’ll have more resources to reach your goals in 2021!
I plan on seeing which of these strategies we can use too… there’s definitely something to learn here…like I said they have been proven to work for our Members!
I hope this list is a great addition to the strategies you already have planned for 2021.
Looking forward to an incredible year and to hearing about your successes.
Dentist Entrepreneur Organization
CEO / Partner