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Dental Practice Coaching

Oral and Maxillofacial Surgery Trends

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Are more general practitioners keeping more procedures in house rather than referring them out? 

That’s what some numbers compiled from Sikka Software data suggest.

Looking at the quantity of oral and maxillofacial surgeries per practice per month, numbers have risen sharply since 2010. A common theory floated about shortly after the 2008 recession was in full effect was that dental practices would keep more procedures in house in order to not lose the production. These numbers seem to buoy that theory.

In order to find these average numbers, we extracted data from Sikka Software that has been collected from more than 12,500 dental practices from around the United States.

Below are the average number of oral and maxillofacial surgeries per practice per month..

2010 – 24.92
2011 – 26.25
2012 – 26.5
2013 – 27.75
2014 – 29.5
2015 – 30.75
2016 – 29.25

How were these numbers tabulated? Sikka Software extracted data from each practice using the practice’s practice management software and specifically looking for one or more of more than 130 codes ranging from D7000-D7999 (oral and maxillofacial surgery section of the American Dental Association’s CDT codes). These codes include procedures such as extractions, biopsy of oral tissue and surgical extraction of lesions.

dental-practice-managementMaybe you’re looking at this area of your practice and wondering how you can boost your numbers? Some of it may involve the extraction of teeth for implant placement. Some of it may involve oral cancer screenings. Boosting this area of your practice could mean it’s time to look at your treatment mix and see what you’ve added in recent years.

Dr. Roger Levin recently talked about this in a recent Dental Economics article when talking about Phase II of a dentist’s career. You can read the entire article where he describes all three phases of a dentist’s career by clicking here. Link to http://www.dentaleconomics.com/articles/print/volume-94/issue-6/features/how-to-grow-your-practice-without-bursting-it-at-the-seams.html

“In Phase II, dentists become busy and reach a plateau where the practice is at an artificial full capacity and further growth becomes difficult. Unfortunately, these plateaus are significantly below the real production potential of the practice. The practice is busy, but mostly because it is not running as efficiently as it could, and therefore, not maximizing production. Once a practice is running at what is perceived as full capacity, the dentist usually has little time to devote to devising management systems to work smarter, not harder.

“Due to a limited education in business, most dentists do not fully understand how to implement effective practice-management systems. Therefore, they cannot make the changes necessary to help the practice reach its full potential.

“In Phase II, the practice is in a plateau with slight periodic growth. This periodic growth does not come from better systems, but rather from fee increases or occasionally adding new services. This potential growth is diminished in a challenging economy.”

Perhaps it’s time for you to look at your treatment mix, not only in terms of what you’re offering but also when is the last time you added to your offerings. Also, are you telling your patients what you can offer to them?

It’s important to not only know your numbers but also know what is producing those numbers in your practice.

 

Source – This article was provided for reprint by SIKKA Software.  SIKKA is the leading provider of business intelligence software for the dental industry.  The Dental Accounting Association, and the Dental CPA’s within this association, utilize SIKKA intelligence software to provide dental practice profit coaching and identify key insights for production improvement.

Dentists Net Production per Hour and Trends

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One of the most important numbers for any dental practice to know is exactly how much the dentist is producing Z - Dental image - open mouthon a daily basis. When you consider that the dental practice is a business and the dentist is the highest-paid employee of that business, it’s important that the dentist is producing at a high level.

Using data from more than 12,500 dental practices compiled by Sikka Software, we have a good indication of how a dentist’s production in the average dental practice is looking. We’ve taken the average over the last seven years and put the numbers below.

Figure 1: Dentist net production per hour, 2010–2016
2010 – $251.31
2011 – $233.43
2012 – $191.35
2013 – $191.66
2014 – $195.04
2015 – $205.57
2016 – $216.24

Both dentist net production and hygiene net production took a massive hit in 2012. Neither have recovered to their levels of 2010.

So what does that mean for you? It means business today is different than it was at the start of this decade. Cash-to-insurance ratio as a method of payment is at an all-time low right now. Your patients are looking to see what is covered by insurance and hesitant to do more than what is covered out of pocket. That means it’s a great time to understand exactly how payment options like the ones provided by CareCredit and other financing companies work.

How can you keep your production at a high level? It’s a critical time for dentists to take a look at their annual budget, says noted practice management consultant Jan Keller.

“When preparing the annual budget each year, knowing the total office production is important in forecasting what both hygiene production and doctor production needs to be for the upcoming year in order to meet our budget and have a profit,” Keller says. “Have a plan in place as to how you will meet your production goals, then know each quarter the goal may increase.”

Z - Dental OfficeKeller also believes having a strategic plan is critical for today’s dental practice. “You have to have a plan in place to monitor this information,” she said. “You need to be asking questions like, ‘Where are we spending our money each month?’ ‘What can we modify or change if necessary?’ ‘What adjustments do we need to make in our spending to keep costs in line or what specific things can we improve upon to increase our production?’”

Keller also believes it will take a team effort to ensure production stays high at your practice.

“So many times, hygienists are performing more than a prophylaxis but are afraid to discuss the periodontal involvement because of the financial aspect.” Keller said. “The entire team needs to be comfortable not only with the fees of the practice but also in charging for the treatment they are delivering. Having team meetings to work on diagnosis and presentation skills in each department is so important to keep the production numbers high.”

Source – This article was provided for reprint by SIKKA Software.  SIKKA is the leading provider of business intelligence software for the dental industry.  The Dental Accounting Association utilizes SIKKA intelligence software to provide profit coaching and make recommendations to improve production.  To learn more about SIKKA, simply visit www.sikkasoft.com.

Dental Student’s Guide to Disability Income Insurance

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In our work with dental students across the country, we spend a lot of time talking about the importance of disability income insurance. Once students understand how important it is to put this insurance in place early on in their careers – ideally while still in school, the next question is how to obtain it.

I know I need disability income insurance. How do I get it?

Buying insurance isn’t like a buying a computer, a car or a house. You can’t just go and get it. You have to apply for it. This means that you have to identify one (or more) insurance companies, and with the help of an insurance agent or financial advisor, apply for their product. After the application, you go through underwriting. Underwriting is just a fancy word for the research and evaluation that insurance companies do to make sure you qualify for insurance coverage.

How do I know whether I qualify for insurance?

Determining whether you are insurable depends on three major factors: your health, age, and income.  As a dental student you will not have to worry about your income – the insurers know that you are temporarily limited in income while you are undergoing training and paying for an expensive education. As a dental student you still qualify for disability insurance, but the amount is capped at $5,000 per month of benefits. Later, as your income increases, you have the option to increase your coverage. Also, insurance is most affordable when you are young and healthy – so get it as soon as possible while you are still young and healthy.

Ready to get started?  

After conducting an interview with you (no need to prepare, this is just a friendly conversation) an insurance agent will take your application for disability income insurance.  This application will ask for basic information like your name, phone number, address, as well as questions about your health history. This process generally takes 15-30 minutes.

Next up: the medical exam

As scary as this may sound, the medical portion is really painless. Your application is submitted to the insurance company, and they in turn order a medical exam.  The insurance company contacts you to set up a day and time that works for your schedule. The best part is that you will not need to go anywhere to complete it. The nurse or paramedic will come to your home or to your place of work. They will draw some blood, measure your height and weight, take your blood pressure, and ask you some medical questions.

The offer

Now can you buy the insurance? Not yet.  From this point the insurance company will review the results from your medical exam, and request your medical records from your primary care physician.  Getting your medical records from care provider can sometimes delay the approval process.  After these are received and reviewed, the insurance company makes you its “offer.” In simplest of terms, the offer is the insurance company’s way of telling you how much they can insure you and how much it will cost. If you like the terms of the offer, all you have to do is sign the paperwork, accept the policy and pay the insurance company for your first month of coverage.

How much does the application and underwriting process cost? 

Absolutely nothing. The insurance company pays for the entire underwriting process.  And you will not be required to pay for your policy until underwriting is 100% complete, and you accept the insurer’s offer.

What happens if I decide not to purchase the policy? 

You are not required to purchase the policy, nor are you out any money, nor will it affect you in any way.  The medical exam that you completed will be good for 6 months, so you can reapply later with that company if you change your mind.

 

Z - Christian - T and HSource – This article was provided by Christian Pearson, National Director of Dental Partnerships at Treloar & Heisel.  

Treloar & Heisel is the premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service. For more information, contact us at 800-345-6040, [email protected], or visit us at www.treloaronline.com

How Much is a New Patient Worth to a Dental Practice?

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So how much is a new patient worth to a dental practice? There are plenty of numbers floating out there that tackle this subject, but we thought we’d use some hard data to tackle it from a different perspective.

V - Smiling Dental ClientTo find these numbers, we took data from Sikka Software that has been compiled over the last seven years. The data we are using for this comparison has been collected from more than 12,500 dental practices from around the country.

The numbers below reflect the gross production per patient who was seen for a comprehensive exam. Comprehensive exams are one of the best ways to indicate a patient who is new to the practice.

There’s little fluctuation in the price range below, but it’s a good estimate on what a new patient can bring into a practice.

2010 — $4,190.34

2011 — $4,100.45

2012 — $4,118.59

2013 — $4,091.02

2014 — $4,016.19

2015 — $4,051.23

2016 — $4,220.25

According to Sikka Software, this number was derived from the ratio of average gross production to unique patients who received comprehensive exams in the six months prior to most current month.

So how do you keep new patients coming back and happy with what your practice offers? We talked to Lois Banta of Banta Consulting and she believes it comes down to five separate steps, starting with the phone call.

“When someone calls your practice, have your BEST communicator answer the phone,” Banta said. “This person’s position would be titled, ‘Director of First Impressions.’ The first impression happens on the phone.”

Banta also said that practices must make sure there is a checklist of information that is shared so the communication can be consistent. This includes:

  1. A description of what will take place during the appointment and what the patient can expect
  2. Reveal any anticipated out of pocket expenses
  3. Send a “welcome to our practice” letter that mirrors the conversation on the phone.

Next comes the actual appointment itself. Banta believes there are some musts when it comes to a new patient appointment.

“To start, the Director of First Impressions greets the patient personally, shaking his or her hand,” Banta explained. “Then offer the patient a tour of the office and perform a 5-minute interview to inquire what inspired him or her to call for an appointment and who the practice can thank for the referral.”

Next is a quick introduction to the doctor and answering any questions patient has.

During the diagnosis and treatment plan, Banta believes three things must happen.

  1. Explain chairside what will take place during the exam.
  2. Explain the “left hand rule” (patient is always free to raise his or her left hand) if the patient has a comment or question during the appointment.
  3. Decide if the patient will need additional consultation appointment, 6-month re-care or minimal dentistry appointment.

Finally, there is the hand-off between the back and the front. Banta says a team member should escort the patient to the financial and scheduling coordinator to finalize the visit, as well as make financial arrangements and schedule the next visit.

“The practice has several opportunities to build the relationship and create a raving fan. However, at any point along the way, the opposite can be experienced,” Banta said. “I highly recommend a team meeting to perform a mock new patient visit from the phone call to the finalizing of the appointment and have a team member document every aspect of the visit … what went right and what were the challenges. Create action plans to fine tune and improve systems for the future.”

Are new patients important to the practice? Absolutely, but keeping them around so they become established patients who value your practice is critical to the success of your business.

 

Source – This article was provided for reprint by SIKKA Software.  SIKKA is the leading provider of business intelligence software for the dental industry.  To learn more, simply visit www.sikkasoft.com.

How Millennials Are Changing Dental Practice Dynamics

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Millennials are changing the landscape within today’s dental practice.  Relative to older clientele, Millennials are willing to search for better options, make more informed decisions and looking online for choices.  This makes them more discerning than older customers and harder to please.

To protect yourself and overcome some of their concerns, a savvy dentist will invest in online reputation management given that Millennials will be looking online before booking an appointment.

Z - Dental trends - Millennials

Protecting Dentists from Financial Threats

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T & HJoin us to learn how to better protect dentists from financial threats and risk.

On July 20th, Treloar & Heisel will share insights on the common threats dentists face to their financial future and how to better protect them from these risks.  The educational session will be instructed by Christian Pearson, National Director of Dental Partnerships, and Shawn Johnson, VP of Sales.

Treloar & Heisel started as a family enterprise over fifty years ago and has grown into the financial services leader for dental professionals offering insurance, financial planning and investments.  Today, they service thousands of dentists and medical professionals from residency to retirement.