Turn that Perpetual Annoyance Into Profit
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Dr. Sam Snyder - Case Study #246
Dr. Snyder contacted our office and was upset because his hygienist wasn’t busy. He wanted to know how to motivate her to work. This article is devoted to establishing a daily hygiene goal for his hygienist…and the process will work for you, too.
Salary Based Goal
The industry standard on hygiene net production is 3 times their daily salary. Here is how it works:
There are a couple of factors that must be considered:
Scheduling goals must be based on GROSS production numbers and not NET production. In order to determine the gross production you must run a computer-generated report that reflects the production adjustments for the past 12 months and use this as a guide.
For example: your report lists all the adjustments that were posted last year. Some adjustments effect the production and some adjustments effect the collections. Production adjustments are items such as bad debt write-offs, PPO write-offs, courtesies, professional adjustments, etc.
The total production adjustments are $25,000.
The total production for the practice is $500,000.
$25,000/$500,000 = 5%
Add 5% to the initial production goal of $975 = $1,024 for the daily GROSS production goal
How To Schedule to Meet a Hygiene Goal
Building a “perfect” hygiene schedule is like creating a puzzle. It only fits together correctly with the right pieces. To determine what the right pieces are, we need to calculate the hourly schedule goal of the hygienist:
$1,024 divided by # of hours worked per day (8) = $128/hour
We also need to determine the hourly value of the hygiene procedures. For example:
Adult Prophy fee is $85. If the hygienist performs this procedure in 50 minutes, the hourly rate for this appointment is $85/50 x 60 min = $102/hr. If she needs 60 minutes, then she is producing $85/hr. This is a $17 difference.
Adult Prophy and 4 BWX is $130. This appointment is also scheduled for 50 minutes. The hourly rate for this appointment is $130/50 x 60 min = $156/hr.
Child Prophy, 2 BWX and FL is $113 and is performed in 30 minutes. $113/30 x 60 min = $226/hr! Did you realize how profitable a child Prophy is? How your hygienists will be begging for the kids!
2 quads of SRP @ $215/quad and performed in 90 minutes is $215 x 2 = $430/90 x 60 min = $287/hr.
Now that we know what the value is of these procedures, it is easy to see that if the entire day is comprised of adult prophies and no x-rays, the daily goal will not be met. However, if all the patients needed x-rays, we would. But we know that only 50% of the patients are going to need x-rays since they are usually taken once a year so this isn’t likely to be scheduled.
The difference between reaching goal and not reaching goal is in the diversity of the appointments. Let’s look at this example:
1.5 hours of SRP @ $430
3.0 hours of adult prophies with BWX @ $390
3.0 hours of adult prophies w/o BWX @ $255
0.5 hours of child Prophy, BWX and FL @ $113
TOTAL GROSS PRODUCTION = $1,188
Imagine how much more productive Helen would be with more children or more periodontal therapy!
Now that Jane has some facts, she realizes that she can’t fill her hygiene day with just prophies…she must leave room for other procedures. She must orchestrate her day the way that she wants it in order to achieve her goal. Give your scheduler the tools she needs to reach the hygiene goal.
What I find lacking in most of the offices I work with is a vision for success. I am not talking about magic or reading Tarot cards, I am referring to a written business plan for reaching short term and long-term financial goals. Many dentists have one tucked away somewhere but have handed that over to an accountant or financial planner to store. That is fine, but these professionals do not sit at the chair with you everyday and monitor your diagnostic techniques or your treatment acceptance rate.
What is your daily diagnosis dollar amount for recall? Have you set a goal? What is your monthly new patient count? What is your average treatment diagnosis for new patients and are they scheduled? Are you tracking your acceptance rate? Your acceptance rate today shows up in scheduled production one to three weeks out unless you are booked out further (which is another issue that needs addressing). If your scheduled day appears thinner than usual don’t look to that day for the answer, go back one to three weeks to see what was being diagnosed and accepted. If you are keeping records you will see a pattern. Your business manager or treatment coordinator cannot book treatment that has not been diagnosed. If you find that you are treatment planning and hearing verbal acceptance from the patient but not seeing them scheduled, look for answers from your business staff. One business manager told me she sends in pre-determinations for all treatment including single crowns and resin fillings. She either schedules four to six weeks out or agrees to call the patient when the pre-determination returns. The reason she does this is to eliminate any question about what the insurance is going to pay. Even when you receive this pre-determination the insurance companies make sure you understand that it is “not a guarantee of payment”.
I recommend doing the following if you are a net-work or out of net-work provider:
A simplified way of tracking your treatment potential is to create a monitor containing the following information:
Scheduling is a major key to the success of all dental practices. Every team member is accountable in some way for the success of scheduling. The age-old questions of “Why aren’t I booked?” “Why are we slow this time of year?” “Why did Mrs. Brown cancel, she has been on the schedule for 6 weeks?” can be answered by looking at the practice history and tracking monitors. Creating a customized approach to your practice needs is one of the reasons why The Advanced Business Training offered at McKenzie Management is a sound investment for your practice. The training provides all monitors, insurance questionnaires, payment option designs and treatment presentation skills you need to take your practice to a higher level of productivity and profitability. Come join us today and create your vision for practice success.
For more information on McKenzie's Advanced Training for Front Office, Office Managers or Dentists email firstname.lastname@example.org, call 1-877-777-6151 or visit our web-site at http://www.mckenziemgmt.com/.
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