In today’s fluctuating economy, preparing your dental practice for economic challenges is crucial. While some headlines focus on impending recessions, others insist that stability is just around the corner. Regardless of the outlook, taking proactive steps now can safeguard your practice’s future.
What does that look like for your practice? Whether you know it or not, you have a barometer of the economy built in to your practice. If you are a general practitioner or periodontist, watching the hygiene cancellation rate is an easy and clear data point to monitor. If it ticks up week over week, leading to month over month for an extended period, and holes begin to develop and are not getting filled, it is likely that your patients are feeling a crunch that may not yet be surfacing in national reporting. For specialists, especially in Oral Surgery and Endodontics, if your referral sources seem to be holding back and keeping work to themselves, they may be filling the holes in their own schedules and with inclination to start on a procedure they may not have earlier in the year. Orthodontists will see a slowing in starts, even initial exams. Pediatric practitioners are somewhat, but not totally insulated, as parents will typically take care of their children before anything else.
Key Strategies for Preparing Your Dental Practice for Economic Challenges
Review In-Network Insurance Plans
While these may be helpful in a rougher economic times, as these plans provide defined benefits that can be used or lost, it is important to ensure you are getting the highest reimbursement rates possible. We would typically advocate for reducing the number of plans in which you participate, focusing on removing plans that are not productive or financially viable. From there, either through your own negotiation, or with help from a company like Unitas PPO Solutions, you should work on securing the highest possible fee schedule you can. This is important no matter what the economic forecast may be, so starting immediately is advisable.
Establish Strong Recall/Reappointment Procedures
When times are good, patients fill the schedule without much need for focus
on tracking or follow-up procedures. As spending constricts, having reliable processes to ensure future appointments are secured, reminders are sent, and last-minute holes are filled can make or break a practice. Further, knowing or being able to report on what treatment is outstanding— accepted or just presented—can be a lifeline for the lighter scheduled days. Working to establish quality operating guidelines to reappoint from the chair and track from the front desk is an investment worth making.
Ensure Reliable Collections Procedures
How is your collections rate now? You can check this in nearly every practice management software package. If you are not running at nearly 100% collections rate, now is the time to fix that. Look at all sources—your private patient as well as private and in-network insurance payors. Do you have processes in place for invoicing and follow-up? How is your Accounts Receivable Aging Report? While you may think it’s ideal for everything to be zero, maintaining manageable balances can help you through leaner weeks or months (or even vacation!). What you want to avoid are significant
amounts trending into the 60- and 90- day columns: Working to bring those down now will set expectations going forward. In tougher times, it is likely those buckets will fill, but keeping them minimal now will allow for proper focus if the time comes.
Patient Profile/Marketing
While potentially more obscure, spending the time now to focus on your patient profile and marketing to boost the counts of your ideal patient sets you up for the best in the good of times and the good in the worst of times. By zeroing in on the patients most likely to accept (or afford) the work and service
you provide will allow you to best cater to and bring those patients in when new or returning patient flow may not be as strong. This will also allow you to better service and relate to the patients you do have, creating a strong bond and affinity to you, your team, and your practice. This will also allow you to better communicate the need for the quality dentistry you provide, which can weigh on a patient’s mind when making financial decisions if spending becomes tighter.
This is just the tip of the iceberg, of course. Understanding the systems, operations, and financial form of your practice are vital to your day-to-day success. While it is important to be a great clinician and service provider to your patients, knowing and managing your business is your ultimate key to your future, and retirement.
Ready to chat?
Book a complimentary 30-minute telephone consultation with a Henry Schein Dental Practice Transitions Consultant to get answers. Whether you are considering selling or buying a practice, merging your practice, or retiring, you will get our sound advice on what to do next.
