Archive for the ‘Cash Flow’ Category

Start Scheduling To Be Productive – Not Just Busy

Wednesday, April 25th, 2012

Don’t leave the schedule to creative interpretation. Scheduling time should be communicated clearly to the Scheduling Coordinator. This basic yet commonly overlooked detail ensures the person in charge of making or breaking your day isn’t forced to guess how much time a procedure will require.

 

For example, the doctor examines a hygiene patient and determines she needs three fillings. The doctor tells the Hygienist exactly how much time is necessary. The Hygienist, in turn, communicates to the Scheduling Coordinator via computer or route slip specifically how much doctor time and assistant time to book. The doctor’s time should be scheduled in one color on the computer and the assistant’s in another. This simple strategy ensures that the doctor is not double-booked.

 

In addition, the doctor should never be scheduled out more than three weeks, so curb the urge to schedule all of the appointments for large treatment plans immediately. Scheduling the entire plan can overwhelm both the patient and the schedule. Worse yet, “bread and butter” patients are often forced to wait several weeks for routine procedures – not something that many of them will accept on a regular basis.

 

Keep communications flowing between the clinical staff and business employees throughout the day. Start by reviewing the schedule as a team first thing during the huddle. The clinical staff can advise the Scheduling Coordinator where to place any emergency patients. If there are cancellations, the team can discuss which hygiene patients may be able to receive immediate treatment and which restorative patients may be able to be worked into any openings in the oral hygiene schedule. The dental assistant also can review specifically what procedures are scheduled and set up the treatment rooms accordingly.

 

Avoid the tendency to engage in “wishful scheduling” in which more time is reserved for the doctor’s “ideal” treatments than the practice has a history of delivering. Rather, calculate the number of crown and bridge units – or other procedures – over the last six months and divide by the number of days worked. Then you can reserve time in the schedule based on the number of units actually performed.

Drowning in Red Ink? This May be the Cause.

Wednesday, April 18th, 2012

There are three common reasons why dentists find themselves treading the waters of financial crisis:

 

1. You have too many employees.

 

2. The hygiene department is not meeting the industry standard for production, which is 33% of total practice production.

 

3. You are giving raises based on longevity rather than productivity/performance.

 

Doctor after doctor after doctor will say they feel like they’re just working to meet payroll, which only continues to escalate while production stays flat or, worse yet, decreases. Establish a compensation policy. The policy states that raises will be given based upon employee performance. Follow these guidelines when dealing with an employee who tells you s/he deserves a raise.

 

•Don’t give raises because you feel sorry for an employee or are afraid they won’t like you if you don’t give in.

 

•Don’t answer a request for more money with comments such as: “I can’t afford it right now.” “You haven’t been here long enough.” “I need to be fair to the others.”

 

•Do ask the employee to provide sound business reasons for why they should be paid more.

 

•Do ask them to provide a report on recent problems/issues and how they addressed them or new responsibilities they’ve taken on since their last raise.

 

•Do ask them to explain in writing what they have done to increase revenue, cut costs, and/or save time.

 

•Do tell the employee what is expected of them. A job description is essential.

 

•Do inform the employee of how you will measure their performance.

 

Under no circumstances can raises be given if the practice is losing money.

The Patient Hasn’t Paid – Now What?

Saturday, April 7th, 2012

Many employees cringe at the idea of contacting patients that are delinquent in making payments, because they believe that it will require some sort of nasty confrontation. In reality – kindness, compassion, and clarity are the order of business for this task. Here’s how:

 

Patients that have not paid their bills should be notified 30 days after services were performed. Messages should be polite and courteous and they should be customized for the specific patient. The more personal the message, the more effective the communication will be. For example:

 

Dear Ms. Wheat, (You can use the patient’s first name if you know him/her well and they have been a patient for many years – Dear Jennifer, …)

 

We wanted to alert you that we did not receive your payment on March 15 as requested. If you are experiencing financial difficulty, please contact Peggy in our office. Otherwise, we would appreciate your prompt attention to this balance by sending payment before April 6.

 

Before contacting patients, do your homework. Review the account history. Confirm that there is not an insurance issue that might be delaying matters, and make sure the practice is not in error. Never apologize for requesting payment. A dental practice is a business that cannot effectively deliver necessary services to patients without cash flow.

Increasing Fees? Consider this First

Saturday, March 31st, 2012

It can be tempting to increase fees – the economic indicators are up, many practices are seeing improvements in new patients, treatment acceptance, etc. Understandably, some are asking, “When can I increase my fees?” Since 2008, many dentists have chosen to forego the standard 3-5% annual fee increases that were common in the pre-recession years. By now a fair number want to get back on track with routine increases.

 

 

But it’s a whole new world out there, and the old standards no longer apply. Today, fees should be based on your actual overhead, expenses, patient base, your individual level of professional expertise, and debt. Don’t establish your fees based on the dentist down the hall or across the street.

 

 

Additionally, be honest with where you truly stand on the skill continuum. Newer dentists simply do not perform dentistry at the same speed as more experienced doctors. For these doctors, what they don’t have in speed they can make up in relationship building. And one thing is true across the board – the doctors who are successful in today’s economy have a relationship with their patients. They are focused on providing the level of dentistry that achieves the greatest return for the patient. After all, when patients have a good relationship with their dentist, they don’t question the fee.

 

Why Postcards Tell Patients You Don’t Care

Saturday, March 24th, 2012

Want to tell patients that dental care isn’t important? Send a cheap, cheesy 3×5 postcard that says: “Time for your cleaning and checkup. Call us today!” And then sit back and watch patient attrition, no-shows, and cancellations climb. Postcards with pictures of cartoon characters, cuddly animals, and scenic vistas that have absolutely nothing to do with professional dental services offer some of the most unprofessional marketing you can do for your practice.

 

Recall is your reputation. The tools you use to promote it either convey the image of a health care provider that is offering a valuable and necessary service, or they don’t. Moreover, recall is your primary practice feeder. A successful recall program is indicative of a thriving and healthy practice. How’s yours these days?

 

Rather than giving your patients an excuse to cancel, give them a good reason to return. Send a recall reminder notice that emphasizes the importance and value of your care. Check out my newly designed “recall reminder notices” HERE.