Benchmarking For Dentists
There is only one way to ensure a business is successful. That is to continuously monitor the progress of your operations, while measuring them against the goals you put in place for continued success. Taking that a step further and identifying what the industry standard is and you have successfully established a benchmark.
The most beneficial tool in your practice, is your ability to create and track benchmarks within your practice to accomplish the success you desire. While this approach to success widely known, we find that it is one that is not commonly practiced. By creating a list of key performance indicators or KPI’s, you can strategically obtain information to identify gaps in your performance. This can be accomplished in numerous variations that can be adapted to your specific goals.
What are Benchmarks?
Performance metrics such as overhead, compensation, lab fees, supply costs, and others are used to determine if a practice is within the standard of operating a profitable dental practice. They also identify several other items of performance as well.
For example, tracking the amount of production and collections per month allows you to identify if production is increasing or declining. By being able to identify this important aspect of your practice on a consistent basis, you can adjust where necessary before you and your team are thrown too far from your goals. Or on the opposite end of the spectrum if you are meeting your goals sooner than expected, you are prepared to create new goals that would maintain your momentum.
Another example would be active patients to ascertain if on-boarding an associate is in order. If you currently have 1500 active patients in the practice and customer satisfaction continues to increase, then signs would point to yes. Or if this has been a goal for that has not been achieved, it may be time to re-evaluate your patient experience or marketing approach.
The outcomes to both scenarios can change drastically from one situation to the next, which is why we suggest having a keen understanding of your numbers and what you would like to accomplish with them.
We want to help tell your Story
Simply put, the numbers tell a story, and at Dental Systems Optimization we have a passion to tell that story. The stress and anxiety associated with practice ownership are numerous when forming both clinical and business objectives. And while it was possible to stay well informed of your performance by discerning profit and loss statements and balance sheets, times have changed. Just as you are fully committed to providing your patients with world class care, we would be honored to do the same for you.
By building a relationship to understand what’s important to you and your practice, we can develop a unique strategy that yields the success you want to standout amongst your peers. We identify your blind spots, collect necessary data, create actionable strategies, and accompany you with feedback every step of the way.
Sifting through the numerous reports from practice management software (PMS), financial reports offered from your accountant and payroll team is our specialty. Let us help you create the strategy and processes to ensure your goals become a reality.