Managing a successful dental office is complex and unique in the healthcare industry. It requires synergy between excellence in clinical practice and business acumen, which includes strategic marketing, patient-centered care, and efficient operations. Negotiation plays a role in various aspects of dental practice and a critical skill for success. Any interaction with suppliers, employees, or patients that results in a decision is an act of negotiation.
Negotiation is about preparation, analysis, and strategizing. While negotiating with suppliers may focus more on the outcome, those with employees and patients are more process-driven to achieve alignment and buy-in.
Negotiating with suppliers for a dental office
Negotiation with suppliers is an essential part of dental office management. Dentists must balance cost-effectiveness and quality when purchasing dental supplies, equipment, or services. Key considerations include:
Cost management: Ensuring the practice acquires essential resources while considering budget restrictions.
Quality assurance: Choosing suppliers who deliver high-quality products in a timely manner which impacts the quality of patient care.
Long-term Partnerships: Establishing partnerships with reputable suppliers to ensure consistent product quality and flexibility based on long-term partnerships.
Negotiating with suppliers may focus on price but must also focus on different aspects of the services and products the dental office needs to operate effectively. While negotiation with suppliers includes reaching an agreement on standard services and product delivery, it is critical to also agree on potential additional fees such as shipping, maintenance, and flexibility for rushed and special orders.
Negotiation is a holistic approach, and one must consider as many aspects as possible in the initial agreement to reduce any conflict or surprises later.
Negotiating with employees in dentistry
Negotiations with employees cover a range of issues, including wages and benefits, roles and responsibilities, working hours, performance metrics, and professional development opportunities. Reaching optimal agreements considering employer and employee needs is critical to keeping the staff motivated while managing the dental office effectively.
One significant difference between dental and other medical offices is the working hours. Most dental offices accept patients outside the 9-5 window for enhanced patient care while remaining profitable. Having reliable, flexible, and motivated employees is essential to success in such an environment.
A few issues to consider as part of the initial negotiation with a potential employee are:
Compensation packages: Providing competitive salaries and benefits based on candidate qualifications and market conditions to attract and retain competent employees.
Working hours: Reaching an agreement on flexible schedules to balance covering evenings and weekends based on the employer’s needs while considering work-life balance for employees.
Performance metrics: Establishing clear performance expectations at all levels tied to patient experience to ensure high quality of care.
The employee negotiation does not end at the time of hiring. It is an ongoing matter with performance reviews, development opportunities, and professional interactions.
Negotiating with dental patients
Negotiating with patients is debatably the most complex component of dental practice management. Although some may not consider patient consensus for a treatment plan negotiation, it is, in fact, a negotiation interaction. Patients are personally affected by the treatment plan decisions made during negotiation interactions. Different aspects of negotiation must be considered for an optimal outcome when persuading the patient of the best treatment plan.
Customized approach: Knowing each patient and understanding their preferences and reservations before their appointment to ensure a customized approach with the right information sharing to influence their decision-making process positively.
Cost-benefit analysis: Shifting patients’ thought processes from a cost-driven to a value-based mindset. It is essential to educate patients on the benefits of the recommended treatment plan and provide the best alternatives to minimize risk while being mindful of financial impact.
Payment plan options: Helping patients understand their insurance coverage and out-of-pocket costs, and collaborating to find an optimal treatment plan with the highest coverage and possible payment plan for out-of-pocket costs over time.
Gaining buy-in from a patient is essential to ensure more effective treatment and high customer satisfaction. Due to lack of specialized knowledge, many patients may not fully appreciate the dental work and cost associated with it. To succeed always consider the three A’s of negotiation.
The three A’s of negotiation
Regardless of the context, effective negotiation in dentistry can be realized by applying the Three A’s: Ask, Analyze, and Adapt. The best negotiators are the ones who can adapt their approach and strategy during different negotiation interactions based on the circumstances, counterparts, and previously unknown information.
Ask: Ask questions before and during the negotiation to gather relevant information supporting your negotiation efforts.
Analyze: Analyze every new piece of information to understand its impact on your negotiation process and outcome.
Adapt: Adapt your approach based on the new information; you may have to adjust your desired outcome or strategy to reach an optimal agreement.
Continue the learning …
As part of the Schulich Mini-MBA: Dentist Business Leadership Program, we focus on a better understanding of negotiation principles, common mistakes made during negotiations, and best practices for reaching an optimal agreement with suppliers, employees, and patients.
Dr. Haniyeh Yousofpour is a Harvard alumnus, an award-winning educator, and a celebrated expert in strategic negotiation, HR consulting, and inclusive leadership. Her thought-provoking and engaging approach has earned her numerous global accolades in MBA and executive-level teaching. Additionally, Dr. Yousofpour is the co-founder of the educational consulting firm Leonnova. She is a recipient of the Queen’s Platinum Jubilee Award for her community service and serves as an active board member of Ontario PCEO.
