With so many day to day factors affecting collections, big picture issues can get lost in the minutia. Dental practices face the challenge of focusing on the variables affecting collections likely to have the most inevitable impact. This report takes a "divide and conquer" approach to identifying opportunities to growth collections by viewing collections as the stock of four factors and addressing each factor in turn.
Collections =
Collections
Number of patient visits
X Procedures per visit
X Fees per procedure
X Percent of fees collected
All else equal, an growth in any of these four factors leads to higher collections.
Number of patient visits;>
The prescription for increasing patient visits depends on a practice's capacity to cope the existing patient load. reconsider first a institution with a capacity shortage as evidenced by a backlogged schedule. Patients who want an appointment in a few days or weeks have to wait a weeks or months. Tens or hundreds of thousands of dollars in production sit in the agenda rather than the bank account. A institution with a capacity shortage can growth patient visits with more productive scheduling, more operatories, more staff, or further hours. Some basic calculations can quote whether the benefit of adding capacity outweighs the cost.
Now reconsider a institution with excess capacity in the schedule. A institution with excess capacity can growth patient visits with marketing, recall, treatment planning, patient reactivation, buyer service, or a institution merger. Most practices lack data to accomplish an exact cost-benefit prognosis when choosing how to spend in these activities. One approach is to accomplish small-scale experiments. Based on the results of the experiments, do more of what works and less of what fails.
Procedures per visit;>
The procedures a dentist performs depend first on what procedures the dentist recommends. Ethical, legal, and pro credit concerns should steer doctors away from over-recommending. But the same concerns should steer doctors away from under-recommending too. How do the doctor and staff feel about the clinical benefits of sealants, fluoride, periodontal care, up to date x-rays, bite guards, and other procedures? Are the doctor and staff recommending accordingly?
The procedures a dentist performs depend second on the acceptance of the dentist's recommendations. For some patients, fear or finances rationally outweigh the benefits of treatment. Such is life. A dental institution falls short both clinically and financially, however, when patients reject treatment because they do not understand the benefits, risks, and costs. Tools, training, systems, and accepted staffing can help patients understand their options and the implications of their decision to accept treatment.
Fees per procedure;>
Fees can have a dramatic supervene on the bottom line. Depending on cost structure, A 5% fee growth may lead to a 10% or more growth in behalf -- assuming patients don't balk at the higher fees. But at some point, some patients will balk. There's all the time the guy down the street charging less and patients all the time have the selection of forgoing treatment.
Unfortunately, dental practices typically lack data required to select behalf maximizing fees. However, dental practices can do three things to tip off their fee choices. First, a institution can compare its fees to other practices in the area. The higher the fees are relative to competitors, the more consuming competitors are to patients. Dental suppliers and other dental assistance providers accomplish dental fee benchmarking studies for miniature or no cost to the dental practice. Second, staff can watch for patient reactions to fee changes. If patients don't blink at a fee increase, reconsider raising fees even more. Remember that losing a miniature number of patients to high fees is not only ok but foreseen, in a institution that sets fees to maximize profit. Third, a institution can study its costs of performing dental procedures to help set fees for profitability.
Percent of fees collected;>
All else equal, the higher the percent of fees collected, the better. But all else is rarely equal and a institution would optimally assault a balance between the cost and benefit of a high range percentage. While the benefits of a high range ration are obvious, here are some tradeoffs:
· Staff wages: How much in extra wages does the institution pay to squeeze the last 0.1% of collections from patients?
· patient goodwill: Does obsession with the last 0.1% of collections originate adversarial relationships with patients?
· patient financing: Although giving 10% of the fee to a patient financing agenda such as Care credit hurts the range ratio, a financing agenda can growth collections if patients would otherwise forgo treatment or fail to pay.
· guarnatee participation: A institution forgoes collecting a part of fees to partake with guarnatee companies. But participation may bring new patients to the practice, which is a benefit. The cost-benefit tradeoff calls for true analysis.
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