7 Ways to Increase the Profitability of Your Pediatric Dental Practice

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1 7 Ways to Increase the Profitability of Your Pediatric Dental Practice

2 1 Over the last decade, the average dentist has seen income stagnate or even decrease. Changes to insurance and increases in overhead have made it more difficult to remain profitable. While many have focused on reducing expenses as a way to increase profitability, this can only get you so far, likely only increasing your monthly cash flow by a few hundred dollars. By focusing on a few small changes, you can dramatically increase production and make a big impact on your profitability. Let s examine seven areas that can increase your production in 2017.

3 2 1. Balance Your Fees You could be leaving money on the table by not rebalancing your fees regularly. The biggest mistake you can make is to submit fees below what insurance companies are willing to reimburse. By balancing your fees in a fair percentile and then submitting those full fees to the insurance companies, you can capture the full amount of coverage purchased and allowed for the patient by his or her parent s employer, along with any increases in coverage. You should regularly compare your fees to those of your competitors. You might have to find some professional help to learn this information, but it is very valuable. Are you charging significantly above or below the market price? Your operating costs likely go up every year, and your fees should keep pace with these changes. You should be rebalancing your fees every year to keep your pricing up to date. 2. Review Your Radiography Standards Nothing shows how the little things add up better than X-rays. If you are still processing film, it s time to make the switch to digital imaging. It more than pays for itself, decreasing operating expenses and improving your capabilities. Digital imaging is faster, and even just a few minutes waiting for X-rays to print can impact your bottom line by thousands of dollars over time. Establish a standard of care for your practice for regular bitewing, panoramic, and full-mouth X-rays on a schedule that makes sense. The AAPD Radiology Guidelines are a great resource to aid you in your practice. New patients, who generally would require a panoramic, BWs and PAs, or a full-mouth series, are often missed. This can amount to a loss of thousands of dollars per year, so don t let X-rays slip through the cracks.

4 3 3. Maximize Hygiene Visits for Both Preventive and Therapeutic Patients One of the easiest areas in which to increase production is the hygiene department. An average single practitioner may have 1,600 active patients, and ideally, they should each come in twice a year for preventive care. Despite that, most hygiene departments aren t scheduling more than 2,000 appointments per year (in total). It s not just a cleaning; there should also be periodontal therapy such as soft tissue management treatment for patients in braces, scalings, and sealants. Filling in the missing gaps in your hygiene department by scheduling your active patients will result in not just a huge increase from hygiene production but also a significant increase in dental restorative billing. Your hygiene department should be a profit center, not a loss leader. Training hygienists in high-level procedures such as soft tissue management and mouthguards can improve that department s profitability. Hygiene is no longer just about cleaning; it should encompass total preventive care.

5 4 4. Make Your Schedule Flexible If you don t have it on the menu, then no one will order it. If your business hours are great for you but not so great for your patients and their parents, then they will probably look elsewhere to find a dentist who can work with their schedule. Many patients need to come in before or after work and school, so those time slots are in high demand. Consider extending your hours or alternating your schedule to come in early on some days and stay late on others. No matter how you set the hours of your practice, try to accommodate the needs of your community. Aim to keep your mornings busy with high-production appointments and use your afternoons for a higher volume of patients with shorter appointments. 5. Offer Flexible Payment Options Money is often a primary obstacle to improving your acceptance rate. Providing flexible

6 5 payment options for parents helps them navigate their individual circumstances and increases your acceptance rate. Pediatric dental practices should accept all major credit cards, but there are a few other ways to help your parents find a solution that is suitable for them. Consider implementing an installment program for large amounts, making sure to collect a majority prior to treatment. You might also consider setting up an in-office plan for parents to pay so much per month for basic preventive services and a percentage discount on restorative procedures. In a similar light, every practice should provide access to at least one third-party option for financing. These options put big cases within the financial reach of more parents. You ll have to pay a fee for such services, but it s a fair exchange if it saves you the trouble of going through collections and increases your acceptance rate. 6. Increase Case Acceptance Rate With Better Presentation Most dentists have a new patient case acceptance rate below 30 percent. Simply put, that is too low, and it s a sign that there is something wrong with your examination or the way your team communicates. Perhaps your presentation skills need polishing, or the other clinical staff should warm up the parents so they don t experience sticker shock. What number should your practice aim for? A good case acceptance rate is 65 percent, though you should aim for 80 percent or better, which can be achieved if your team has their presentation down. The most important thing you can do to increase case acceptance rates is to improve the way your team communicates with the patients and parents. Establishing a personal relationship and earning the patient s and their family s trust goes a long way to preparing them for case presentation. Understanding the patient s needs and parent s concerns is a requisite to building rapport. After that, parents biggest objection (even if they don t state it) is simply financial concerns. An effective case presentation after a friendly warming up can radically change the number of new patients who return rather than walk out the door, never to be seen again.

7 6 Your fee structure should be presented in clear, simple writing so that it is easily understood and can be consistently explained by every team member. Today s parents expect flexibility in payment options and may hesitate to make a big spending decision on the spot. It s important to have several payment and financing options available to keep treatment moving forward. 7. Improve Your Digital Marketing With Social Proof As many as 81 percent of people search for online reviews before visiting a local business. That is especially true for service industries (like dentists). What will their initial impression of your practice be? Do you stand out?

8 7 It s no secret that Google (and other search engines) are playing an ever-increasing role in the success of local businesses. Use patient and parent testimonials, especially videos, on your website to help project a positive image of your practice. Sometimes, just a little bit of social proof is all you need to help someone make a decision. Your site should also include links to the most important review sites to encourage patients to leave feedback. Potential patients and their parents are already going to search for you online, so help steer them to the best channels to learn about your practice. In 2017, do more than just have your pediatric dental practice survive, help it thrive! Make sure your practice s website follows these simple optimization rules and you ll be ahead of many other pediatric dental professionals. A well-optimized website, coupled with online reviews, can make a world of difference for dental professionals and patients alike. If you d like a little extra help increasing the profitability of your pediatric dental practice, learn how the PDAA can help. Give us a call and we ll be more than happy to discuss how with you: Thanks for reading, Dr. Rhea Haugseth pdaadirector@gmail.com

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