May 17, 2010
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economy has changed, and the dental world is forced to change. too. Once
thought by most to be recession-proof, dental practices are being
impacted by the economic downturn in many ways. Today’s economic
conditions are unpredictable and have placed new challenges on staff and
resources. As the economy continues to fluctuate, dentists are
uncertain about what actions to take.
the past two decades, I have witnessed many changes in our profession.
The combination of innovation and entrepreneurship has led to
significant breakthroughs. The emergence of cosmetic dentistry and the
growth of implant dentistry created a renaissance in the dental
As dentistry continues to
evolve in a new economy, it is even more critical to keep an eye on the
business side of the practice. Most practices continue to manage
themselves as they did when the economy was far different and much more
robust. In the current market, today’s dentist is wondering what should
be done to manage day-to-day pressures while running the practice. In a
world of “that was then,” you can no longer afford to practice the way
you once did. Practices are working harder to maintain production
levels, and doctors’ investment portfolios have declined and only just
recently started to climb back up. While there is a strong desire to
increase doctor income, no one is sure exactly how to make this happen.
The new economy has shown us a new era of dentistry.
Practices will no longer automatically find success by hanging out a
shingle. Even dental insurance is no longer a guarantee that patients
will come to a practice. Patients with insurance, similar to other
consumers, are cutting back on spending. Unlike medicine,dentistry
almost always comes with a co-payment or out-of-pocket cost. Given that a
great deal of dentistry is not based on emergencies or pain,many
patients are deciding to hold on to their money rather than spend it.
Some of the changes Levin Group has seen in the last 18 months include:
observations illustrate how dental practices need to be more efficient
than ever in their operations to maintain profitability. During this
time of transition, the key factors contributing to “this is now”
1. Bring in new patients through internal
marketing: They’re already there in your practice. They have
the knowledge to help you build your practice. They’re more effective
than Yellow Pages ads or radio commercials. They are your current
Most are happy to refer their friends and family — but
you have to ask. If current patients aren’t aware that your office is
accepting new patients, it’s doubtful you will receive many referrals.
You and your team need to communicate that the practice is actively
looking to provide excellent oral health care to more patients. Signs,
scripting, and patient incentive programs are good strategies to boost
Once you receive referrals, be sure to call and
thank any patients who refered their friends and families. Levin Group
recommends that the dentist be the one to make the call. Patients who
receive these phone calls are motivated to continue referring others.
Reactivate inactive patients: One of the key principles of
practice management is to retain patients. I recommend the following
methods for keeping patients engaged, as well as for reactivating those
who have become idle over the last 18 months.
phone call sequence should be three calls over a three-week period. This
has worked extremely well for many practices, allowing them to activate
a large majority of patients who have not presented to the practice in
the past 18 months. It is also important to track these patients
separately to be sure that they keep their appointments because their
value for the practice or amount of dentistry performed may be lower
than that of an active patient.
3. Increase elective
services/promote comprehensive dentistry: As patients begin to
stabilize financially, practices should continue to present cosmetic and
elective dentistry. I know some dentists may balk at this, saying, “My
patients are struggling. They don’t have money for ‘extras.'” I
understand this perspective, but let me make a few salient points.
not everyone has been affected by the economic downturn. Some patients
are doing quite well and will want to invest in a better smile and
quality of life. Others may have a major life event (wedding, reunion,
job interview) where they want to look their best. Even if patients turn
down treatment now, they may accept it later. Sometimes, it takes more
than one case presentation for patients to say “yes.” This isn’t the
time to hunker down, but rather move forward with making your practice
vision a reality.
4. Make treatment affordable for
patients: No matter what the economy, you should make it easy
and convenient for patients to accept your services. The more financial
options your practice offers, the better the outcome for everyone. To
ensure patients can afford and feel comfortable with payments, try to
offer the following options:
no mistake — patient financing matters! According to a recent study by
Hiner & Partners, 73% of patients surveyed indicated they felt their
dental office was looking out for them if financing options were
offered. Therefore, offering flexible financing options through an
outside patient financing company such as CareCredit® that understands
the needs of dental offices is a good way to increase patient trust.
Streamline operations through high-performance systems: Many
dentists do not realize that a practice without outstanding documented
systems will never reach its true potential. An average practice
operates at approximately 30% below its potential due to a lack of
Major management systems can be broken down into
of these systems is a practice’s key component, with the exception of
hygiene for some specialty practices. But all five systems are
integrated to make it virtually impossible to change one without
affecting the others. For instance, scheduling affects practice finance
and hygiene affects case presentation.
In the past, dentists could accumulate enough savings
over a reasonable number of years. However, my warning is that this will
no longer be the case in the “this is now” economy. If dentists
continue to operate practices “the way it was then” versus “the way it
is now,” today’s dentists can expect to work 10 years beyond what they
When a dentist can redefine practice operations to adapt
to a changing environment, achievements are more appropriately aligned
and a renewed sense of satisfaction is gained.
By Roger P. Levin, DDS, is chairman and CEO of
Levin Group, a dental management consulting firm that is dedicated to
improving the lives of dentists via a diverse portfolio of lifetime
services and solutions.
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