Crash Course in the Business of Dentistry For New Dentists
I recently talked to a group of dental students in the last year of their pediatric dentistry residency. They shared how excited they were to treat patients, they felt prepared to utilize the latest technology, and they were familiar with new materials techniques and instruments. They are amazing dentists, ready to provide their patients with the best possible care. However, when it comes to opening a brand new practice, these new dentists needed training in the business of dentistry to give them the same level of confidence they had as clinicians.
There are several best practices utilized in the corporate world and proven to be instrumental in the success of numerous types of companies. Managing these four areas will help set new dentists up for success before opening their practice.
Business
From the fixed expenses like rent and utilities to the variable ones like lab and materials, know the overhead expense of the practice. How much does it cost to keep the business running?
How much money are you going to allocate for each expense? Have a detailed budget that considers all the areas you need to operate the business.
Keep track of expenses in a profit & loss report. This quick glance of expenses and income shows your monetary balance at the end of the month. Is there a residual income or do you need more money to keep the practice open?
- Know your key performance indicators (KPI’s). There can be a myriad of KPI’s and it can get a little overwhelming; the following six provide an excellent picture of the practice:
- Production: How much dentistry is being done? You can get as detailed as production per hour, per visit, or per provider.
- Collection: How much money is being collected from the procedures? The collection rate gives the percentage of money in relation to the amount of dentistry performed.
- New patients: Keep track of how many new patients are coming in each month.
- Active patients: Patients that have been in the practice with at least one appointment in the last 18 months.
- Attrition: Are you keeping your patients? How many patients are not coming back? Are you losing more patients than gainin new ones? Is the patient growth positive or negative?
- Hygiene reappointment: Make sure patients leave the clinic with their next hygiene appointment scheduled. Between 25% and 35% of the production of the practice comes from the hygiene department, and approximately 75% of the restorative treatment is diagnosed during a hygiene visit.
Human Resources
Managing people can be time-consuming; give them clear expectations and the tools they need to succeed. Having human resources policies and strategies in place provides the team with a framework to operate.
Before opening the practice, create an employee manual that includes federal and state requirements regarding employment opportunities, harassment, disabilities, employment classifications, pay schedules, benefits, separations, etc. Additionally, set guidelines that relate to the culture of your office: attire and grooming, social media use, performance review, disciplinary procedures, visitors and guests, etc.
Make sure to have a job description for each position. Include a summary of the job, essential duties and responsibilities, skills and abilities, and behavioral expectations that are important for the culture of your practice.
Have standard operation procedures for everything; from how to answer the phone, treatment planning, check-out, instrument sterilization, and taking X-rays, to each clinical treatment.
Establish a hiring policy that will help you gain the talent you need and is compliant with employment regulations.
Develop a training strategy that includes a clear onboarding progression. Make it a continuous process throughout the year with formal and informal feedback sessions and a performance evaluation.
Set time in the schedule for team meetings, morning huddles, and team-building activities.
Document performance progress and issues. Create a routine of documenting feedback sessions, disciplinary actions, and performance improvement plans.
Create a checklist for separations and follow it every time. Firing personnel is a hard task that can involve strong emotions. Having a checklist and sticking to it avoids mistakes and provides a sense of security in that moment.
Take time to recognize and celebrate good performance, teamwork, exceptional support, and behaviors that are aligned with the culture of your practice.
Consider creating a relationship with a temp agency, having someone to rely on if you have a sudden personnel need will solve the temporary absence and prevent an issue from becoming an emergency.
Technology
Envision the dental practice you want to have and see how technology can help you achieve it. The dental business is a big market and there is new and improved technology popping up continuously regarding both clinical and non-clinical matters.
Research software for patient management, appointment confirmation, patient communication, reviews, scheduling appointments, forms, payment, social media & online presence, and KPIs.
Make sure everything integrates seamlessly without slowing your system; look for companies that offer month-to-month contracts, training, support, and troubleshooting.
Purchasing
Have a purchasing strategy that adapts to your needs and communicates it clearly; do you only buy specific brands or do you buy what is on sale? Someone in your team should be responsible for purchasing and have time built into their schedule to order materials.
Cultivate a relationship with dental distributors and representatives from brands you like and buy a lot of. They will help when you need them and can give you excellent advice.
Check alternate places like Amazon and online dental markets. It’s a good practice to have more than one option.
Marketing
Your brand’s image is part of your reputation and it should be coherent through all the channels. Define how you want to be perceived; everything you do needs to reinforce that image. Your logo, colors, the font on business cards, the design of your website, your social media, and online presence. The look and feel of your office, how it smells, your uniforms, how the patients are greeted… They are all points of contact with your patients and channels of communication that should refer to the same values as you and your brand.
In Conclusion
Each of these four areas contributes to the culture of your practice. What you say, don’t say and how you say it are equally important to what you do, don’t do, and how you do it.
Start the journey towards a new practice with a clear image, mission, vision, and a set of values that are important to you. Communicate them to your team and make sure they are aligned with your beliefs; they will be your brand ambassadors. Being consistent creates a memorable impression on patients speaks of transparency and contributes to building trust. The trust of your patients will let you do what you love, and provide them the best possible dental care.
About the Author
Carolina Perez holds an undergraduate degree in communication and a master’s degree in group dynamics. Her original background is in corporate communications, training, and development. In 2007, Carolina relocated from her home country of Venezuela to Houston. Today, she serves as the clinical director of Echeverri Dental Center. Carolina has been an AADOM member since 2017 and received her AADOM Master Distinction in 2023.
