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Bobby Haney, DDS
MONITOR THESE VITAL SIGNS!
There are many indicators to evaluate the health of your practice. Let me give you 7 that are "key" vital signs.
1. Treatment acceptance rate. Are your patients accepting recommended treatment? This should be AT LEAST 85%. In my practice we were dissatisfied with anything below 90% and would quickly evaluate any number below that.
2. Collections. Are you getting paid your fees? This should be AT LEAST 98% of your production. Again, we expected better in my practice and typically collected 99%. In a $1 million dollar practice that is $10,000 - pretty nice vacation!
3. Number of active patients. We counted patients who we had seen in the past 18 months as active. This number varies widely but there are many reasons for this to be as high as possible (obviously.) And what happened to those who have become inactive?
4. Schedule. You need no more that 30-45 minutes of open time per day for all producers, not each producer. Keep the 'book' full.
5. Patient retention. Are your patients coming in the front door and leaving the back? If so, why? Fix it!
6. Overhead. What is your net collection? Overhead should not exceed 55-60% in an established practice.
7. Hygiene production. Is your hygiene department profitable? Again, this is variable depending on the type of practice you have but hygiene should NOT be a "loss-leader." Hygienists should produce 3X their salary.
Having a problem with these areas (or others)? I CAN HELP YOU FIX THAT! Just let me know ASAP. (Wouldn't you like to be able to afford to take a vacation?)