Experiencing a few growing pains these days? The schedule is maxed out. The team is stressed out. And it seems that no matter how much you work the money’s always out. While the practice may appear to be booming, in reality it is on the brink of a bust. Take steps to turn things around, starting with the time.
It’s time to make the schedule your servant and not your master, which means scheduling to meet daily production goals, NOT scheduling just to keep the doctor and team busy. Establish a realistic financial goal for your practice; let’s say $700,000 in clinical production. This calculates to $14,583 per week (taking four weeks out for vacation). Working forty hours per week means you’ll need to produce about $364 per hour. If you want to work fewer hours, obviously per hour production will need to be higher.
Use the formula below to determine the rate of hourly production:
1. The assistant logs the amount of time it takes to perform specific procedures. If a procedure takes the doctor three appointments, she/he should record the time needed for all three appointments.
2. Next record the total fee for the procedure.
3. Determine the procedure value per hourly goal. To do this, take the cost of the procedure, for example $900 for a crown; divide it by the total time to perform the procedure, 120 minutes. That will give you your production per minute value – $7.50. Multiply that by 60 minutes – $450.
4. Compare that amount to the doctor’s hourly production goal. It must equal or exceed the identified goal.
5. Start scheduling to meet that goal every hour of every day.