Five P’s for a Better Future

November 12, 2020 North Shetter DDS

In times of disruption, small changes can have a large impact. Follow the 5 P’s and see where Proper Planning to Prevent Poor Performance leads you.

Those of you who experienced the joys of boot camp may remember the 5P’s: Proper Planning Prevents Poor Performance. Since we are all stuck waiting to get back to the office, now is a great time to work on plans for a preferred future.

Although we will be opening in a disrupted world and the market we left has been transformed by forces outside our control, good business principles and practices remain valid. Here are some key performance indicators adapted from Roger Levin’s 2019 article about the KPI’s every dentist should know.

Production, Collections and Profit

Review your production, collections and profit for the last 12 months. Levin points out that the trend on each of these items should be up. Sounds simple but it is not. Dig in and analyze deeper. Start with monthly figures and look for trends, then weekly and daily. What are your most productive procedures, days, time of days? When was your last fee increase? Analyze your outstanding accounts. You should be collecting 98% with only a small percentage over 60 days outstanding. How much are you writing off due to insurance mandates? How profitable are you? Have you set any goals? Understand that any item in your practice that is not true overhead is profit. Now you are ready to start working “on” your business.

What percentage of your active patients is currently scheduled? Nobody should every leave your office without another appointment. Your goal should be 98% of active patients are scheduled for some form of care. What is your case acceptance rate? Are you tracking patients with planned treatment that is not scheduled? What is your average production per patient? What is your average production per new patient? It should be at least two times greater than existing patients. What is your hygiene cancellation rate? If you are not happy with what you are learning, now is the time to be planning for better outcomes.

Overhead

Now is the time to carefully assess every item included in your overhead. If you have a practice generating a million dollars, a 2% decrease in overhead is $20,000 directly to profit. Levin Group tells us that general dental practices should have overhead at 59%. Very few practices meet that goal. It is very likely that new mandates from the government will be coming for PPE and testing. Now is the time to get lean and mean in this area.

Patients

Are you tracking your monthly new patient growth and your patient attrition? With all the media attention to aerosol spreading of Covid-19, it is likely there will be resistance to treatment and dentistry in general. Knowing your current situation is important. It is imperative that you use every means available to help your current and new clients understand that you are concerned for their health and safety as well as to emphasize that deferring treatment will only lead to future more difficult and expensive problems.

Staff Costs

The elephant in the room…staff costs in a general dental practice should be 25% of collected production. Your team members are the most expensive and most important part of your business. You may want to share your homework with your team – or even involve your team in the exercises above.

Related Course

TMD & Orofacial Pain: Managing Complex Patients

DATE: January 29 2025 @ 8:00 am - February 2 2025 @ 1:00 pm

Location: The Pankey Institute

CE HOURS: 37

Dentist Tuition: $ 7200

Single Occupancy with Ensuite Private Bath (per night): $ 345

TMD patients present with a wide range of concerns and symptoms from tension headaches and muscle challenges to significant joint inflammation and breakdown. Accurate thorough diagnosis is the first step…

Learn More>

About Author

User Image
North Shetter DDS

Dr Shetter attended the University of Detroit Mercy where he received his Doctor of Dental Surgery degree in 1972. He then entered the U. S. Army and provided dental care at Ft Bragg, NC for the 82nd Airborne and Special Forces. In late 1975 he and his wife Jan moved to Menominee, MI and began private practice. He now is the senior doctor in a three doctor small group practice. Dr. Shetter has studied extensively at the Pankey Institute, been co-director of a Seattle Study Club branch in Green Bay WI where he has been a mentor to several dental offices. He has been a speaker for the Seattle Study Club. He has postgraduate training in orthodontics, implant restorative procedures, sedation and sleep disordered breathing. His practice is focused on fee for service, outcomes based dentistry. Marina Cove Consulting LLC is his effort to help other dentists discover emotional and economic success and deliver the highest standard of care they are capable of.

FIND A PANKEY DENTIST OR TECHNICIAN

I AM A
I AM INTERESTED IN

VIEW COURSE CALENDAR

Tips for Introducing and Marketing New Adjunctive Treatments

October 10, 2018 Pankey Gram

There is always room for improvement in the dental practice, but it can be challenging to know where to start. One of the best places to change things up is with CE on topics you may have never learned before. Another option is to delve into new adjunctive services or work toward providing more comprehensive care.

Adding and Marketing Adjunctive Treatments

For example, how strong is your whitening protocol or treatment options? Bleaching is incredibly popular, but just because you offer it doesn’t mean patients know or understand what is available to them. It’s a good idea to find creative ways of adding or marketing at-home tray bleaching alongside other more complex or involved services.

Another adjunctive treatment that can be a great boost in the practice is Invisalign. It’s a fabulous way to improve the outcome of many comprehensive treatment plans by optimizing tooth position. It also has some serious brand name cachet.

Invisalign can make your treatment plans more conservative because it can lead to requiring less restorative work. Additionally, patients who wouldn’t be willing to try traditional orthodontia will likely be far more interested in the clear Invisalign trays. Invisalign can be a new stream of revenue for the practice. That along with bleaching will noticeably increase profitability.

All in all, adding more services will keep things lively, introduce you to more interesting concepts, and inject some energy into the practice. Patients who trust and appreciate you will be excited to take advantage of previously unavailable treatments. These services will also help attract new patients to the practice or draw the attention of a unique demographic. There are plenty of options to explore!

Curious what makes dental care a valued investment? Check out this Pankey Gram blog we’re loving from Dr. Will Kelly here. And let us know what adjunctive services you offer in your practice …

Related Course

E1: Aesthetic & Functional Treatment Planning

DATE: March 13 2025 @ 8:00 am - March 16 2025 @ 2:30 pm

Location: The Pankey Institute

CE HOURS: 39

Dentist Tuition: $ 6800

Single Occupancy with Ensuite Private Bath (Per Night): $ 345

Transform your experience of practicing dentistry, increase predictability, profitability and fulfillment. The Essentials Series is the Key, and Aesthetic and Functional Treatment Planning is where your journey begins.  Following a system of…

Learn More>

About Author

User Image
Pankey Gram

FIND A PANKEY DENTIST OR TECHNICIAN

I AM A
I AM INTERESTED IN

VIEW COURSE CALENDAR

Improving at “The Business” of Dentistry

September 18, 2017 Mark Murphy DDS

Making better business decisions for your dental practice comes down to four key goals: (1) doing more dentistry patients need, (2) helping patients have healthier mouths, (3) making more money and (4) stressing less.

Improving your success in any one of these areas will affect the others, which is why you should think of these various elements comprehensively rather than separately.

How to Do More Dentistry

If you feel that you’re not making enough or treating enough patients, the problem likely isn’t economic downturn. The truth is, if you have a strong system in place, external economic factors shouldn’t have a huge effect on how many patients return for basic treatments such as hygiene.

One of the most common issues practices face is the efficacy of their systems. You may be seeing plenty of patients but without a clear system for setting new appointments, you may not have a full schedule.

Retention is all about measurements. What this means is that when you track or record data, you’re more likely to pay attention to it. A great way to increase the number of hygiene appointments you have is to track how many your are scheduling and how many patients are showing up for.

Simply by measuring this information, you will be more likely to ensure appointments are made. The same goes for your staff who actually carry out scheduling and encourage patients to return. This will also help you better understand what appointment scheduling methods you should offer. Different people like to be reminded differently. Some prefer an email, some prefer a text, some prefer the date and time written on a piece of paper, and some prefer a call.

The lesson of retention illustrates a thought process that can be applied to all areas of your business. Essentially, remember that one size does not fit all and simply paying more attention can improve your success.

What do you think is the hardest part of running a dental practice? 

Related Course

Pankey Scholar 14B

DATE: August 15 2024 @ 6:00 pm - August 17 2024 @ 3:00 pm

Location: The Pankey Institute

CE HOURS: 0

Dentist Tuition: $ 3905

Single Occupancy with Ensuite Private Bath (per night): $ 290

“A Pankey Scholar is one who has demonstrated a commitment to apply the principles, practices and philosophy they learned through their journey at The Pankey Institute.”   At its core,…

Learn More>

About Author

User Image
Mark Murphy DDS

Mark is the Lead Faculty for Clinical Education at ProSomnus Sleep Technologies, Principal of Funktional Consulting, serves on the Guest Faculty at the University of Detroit Mercy School of Dentistry and is a Regular Presenter on Business Development, Practice Management and Leadership at The Pankey Institute. He has served on the Boards of Directors of The Pankey Institute, National Association of Dental Laboratories, the Identalloy Council, the Foundation for Dental Laboratory Technology, St. Vincent DePaul's Dental Center and the Dental Advisor. He lectures internationally on Leadership, Practice Management, Communication, Case Acceptance, Planning, Occlusion, Sleep and TMD. He has a knack for presenting pertinent information in an entertaining manner. mtmurphydds@gmail.com

FIND A PANKEY DENTIST OR TECHNICIAN

I AM A
I AM INTERESTED IN

VIEW COURSE CALENDAR