The big question to ask becomes, “How do you know how much your Portland Vancouver dental practice leaks profits?” Practices suffer from leaky profits from Battle Ground to Vancouver area to Beaverton, Gresham and Hillsboro. No area is immune.
Areas where a Portland Vancouver dental practice leaks profits
And as a practice leaks profits these areas cover lots of variations. Focus on these areas and you’re sure to get some benefits.
- Treatment Enrollment, Scheduling
- Patient Experience
- AR (Accounts Receivable)
- Culture & Leadership
RECARE in a dental Practice that leaks profits
RECARE, on average in a General Practice, leaks about 25% of its profits. Most general practices overestimate their recare effectiveness and therefore miss leaks in their profits. And since recare drives not only hygiene production, but also treatment production any leakage in production produces leaky profits.
The whole patient experience
Treatment enrollment, scheduling can change everything in a practice. So, get these systems aligned well and tuned properly which can move a practice from barely profitable to experiencing larger profits.
Patient Experience more than anything else hides leaky areas in a practice. To clarify, when a patient doesn’t like an interaction in your practice, it causes resistance to treatment plans and slower payments. Often, patients simply walk away and go to a new dentist.
AR (Accounts Receivable) leaks money in most practices, except for the most well-run practices. For example, insurance payment delays and discounts and patient non-payment or delayed payments clearly reduce on-time collections. To add to that, poor processes and poor leadership, management, and communication all contribute to out-of-control AR situations and thus leaky profits.
It turns out, these six AR areas directly hack away at a doctor’s profits. Therefore, even with an AR “a little out of tune” affects profits severely.
Culture and Leadership are undervalued
Culture and leadership tend to be vastly undervalued by practices. Yet, they affect profits more than anything else.
For example, culture and leadership affect efficiencies, production, collection, transition valuation in large ways. And this means they are strategic (have big impacts) in nature.
In addition, you can put the best processes in place, get the most skilled people and yet, if you have a poor culture or leadership, your practice will leak profits like a sieve.
As a side note: Did you know that it is estimated that 60% – 70% of dental practices and 70% of small businesses suffer from embezzlement with an average take of over $100,000 over many years? The fraud triangle defines this highly vulnerable situation in which practices often find themselves. The fraud triangle comprises mostly of cultural and leadership issues and some process issues.
“Culture eats strategy for Lunch!”
Once you align your culture, the practice turns into a team-driven practice, that most small businesses can only dream of. In a well-aligned culture, dental assistants, hygienists, front desk people constantly look to improve the practice. In addition, others hear about your excellent practice and want to come to work for you.
Optimize these leaky profit areas
So optimize these key areas in your practice! If you successfully optimize these, you’re marketing works better, your scheduling cleans up, and you’ve gone a long way to stop the areas where your Portland Vancouver dental practice leaks profits.
At Fortune, we work with practices every day from smaller new practices to experienced practices looking to grow or transition and we definitely help them stop leaking profits!
We’re experts, helping doctors and their teams solve these issues for practices in:
- Portland area;
- Beaverton, Tigard, and Hillsboro areas,
- Salem and Eugene areas;
- Vancouver, Battle Ground, Centralia areas;
- Tacoma, Gig Harbor, and Olympia areas.
Professional Dental Coaching
At Fortune Management, we believe extraordinary practice leads to an extraordinary life. Our executive leadership coaching, practice management, and strategic planning will help you execute your desires. The dental coaching and expertise we provide improves not only your personal development, it develops you professionally as well. If you are ready to take your business and leadership skills to the next level, get in touch and contact our passionate team.