“Roger, I want to make more money.”
I hear that all the time from practice owners at my seminars. Then they usually follow up with something like: “Don’t get me wrong, I love taking care of my patients, but I went to dental school for four years, I own a practice, and I’m bustin’ my hump every day, yet I’m making less than my neighbor who sells hot dogs outside the Home Depot.”
OK, that last part might be a slight exaggeration.
But there are a lot of dentists out there who are unhappy with their income.
Many of them then proceed to ask me what to do. I look them square in the eye and tell them that the answer is staring them right in the face all day, every day…
The most profitable services in your practice are the ones you already offer.
While adding certain services, such as whitening or implants, can definitely increase production, the FASTEST way to do more profitable dentistry is to hyper-focus on fully maximizing the value of the treatment that shows up in your chair every day.
If you haven’t already taken steps to gain another 10–15% profit margin on the procedures you’re good at and perform frequently, what are you waiting for?
Every practice has specific services that are more profitable than others. For example, in general dentistry, it is typically crown and bridge. While it can be debated which procedures are the most lucrative in dentistry, there are other factors that impact practice production and profitability, including:
- The Schedule. Too many schedules choke off production because they’re inefficient, inaccurate or just plain outdated. They’re based on old habits rather than sound business principles. Just because the team is comfortable with the pace of the current schedule doesn’t mean it’s the most effective schedule for your practice. Time and again we have shown clients how to manage multiple chairs (and often multiple assistants) smoothly, which easily increases production, lowers overhead and decreases stress. Many dentists and teams hold onto the status quo, believing changing the schedule will lead to rushing and higher stress, which isn’t true.
- Speed. In an era when insurance reimbursements are declining, time really is money. The faster the procedure, the more profitable it is. We have clients who range from 30 minutes per crown prep to others who take two hours. While these may be the extremes, simply shaving 10 minutes from most appointments is a significant time savings.
- The Cost of Services. Lowering overhead increases profit, which is directly proportional to take-home income. One of the best examples for cost savings is laboratory services. Some offices work with labs that are far more expensive than necessary to provide excellent care. If crown and bridge is one of the most productive services in dentistry, then working with an excellent dental lab at a reasonable cost can make a significant difference. As the number of crowns, bridges and veneers increase, the savings (and profit) can add up quickly. There are excellent national dental laboratories, such as National Dentex, that provide every possible service at a reasonable cost.
Conclusion
If your practice isn’t as profitable as you you’d like, the solution for fixing that is easier than you think. The question isn’t “what procedure is the most profitable?” but rather “how much more profitable can I make the procedures I perform?” The answer is always – a lot!
Additional Resource
Read a free excerpt from Dr. Roger P. Levin’s popular book, 100 Ways to Increase Your Practice Profitability. Go here and click on the “Read an Excerpt” button.
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