We have successfully made it past the half way point of the year. You look at your checking account and think that it seems low compared to years past, yet you are producing more than years past. If you are doing everything the same as last year, you are probably correct - it is lower. We put all our expenses on autopilot and do not stop to consider that there may be a more economical way to do business.
This is a time when all business owners need to take a hard look at every single expense and thoroughly analyze its value and need for the practice. We need to be financial ninjas to make sure that we are being the most fiscally savvy possible. It’s time to become iron-fisted on every expense. The health of your budget depends on it.
Here is a checklist of duties that we find get overlooked throughout the year:
Fee increases: Although this typically occurs with the start of a new year, we often see offices wait until mid-year or even worse, skip a year or two. Why? Most times, it is because they feel that it is a waste of time. Insurance fees didn’t go up and increasing fees would merely increase the write-offs. - Do you not have any cash pay patients? - Additionally, you should be submitting your office fees to the insurance companies, which allows them to know what the fees are for your area. (I saw that eye-roll) Recommended Action: Contact your local supply rep for a complimentary updated fee analysis or purchase one online (NDAS).
In-office Dental Plans: You set this up a few years ago and are so proud that you have a good number of patients signed up with your program. Have you adjusted the membership fee since you started the program? Recommended Action: If you are working with a company that manages your program, have a meeting with your rep to review the current fees. If you are managing your program in office, take a look at the current fees to see if an increase in the monthly/yearly fee is needed.
New Insurance Codes: The ADA, along with a group of dentists and insurance reps, meets yearly to analyze the dental codes. They retire some codes when they become obsolete and they add other codes to try to stay up with the activities within dental offices. Insurance companies tend to delay their reimbursements of new codes to see if dental offices will in fact use them. As a business in this industry, it is imperative that offices stay up to date and utilize the new codes. Recommended Action: Order your Current Dental Technology (CDT) book and familiarize yourself with the retired and new codes allowed by the ADA.
Lab Fees: The fees everywhere continue to climb and this includes with your favorite lab. Keep in mind that delivery fees, material fees, everything has gone up for the lab as well. Does this mean you need to adjust your procedure fees? Recommended Action: Compare your costs from last year. If they seem out of line, contact the owner to see what can be done.
Bundled Codes: There are some procedures that include several codes which are presented in a ‘bundled’ manner - Ortho, Implants, etc. Have you reviewed the individual fees &/or costs of each of the procedures? For instance, you offer ortho services and the patient will need to come in for XX number of visits; although the patient doesn’t pay for office visits, has the cost of each visit increased? Recommended Action: Consider all the costs of bundled procedures to ensure that you are charging appropriately.
Dental Supplies - The current cost of supplies is causing a huge hit to your company’s expenses, which immediately affects your bottom line. There are broker companies that will help you find lower prices based on the ‘sales’ of different companies. Keep in mind that loyalty can be beneficial and by going to a broker you could have delays in shipping. All these are variables to be considered. Recommended Action: Compare your costs from last year. If they seem out of line, consider speaking with your supply rep to see if there are some products that can cut this increase, possibly using generic options.
Subscriptions: Do you have 3 subscriptions that all do the same thing, just a little differently? Do you have subscriptions that you, or anyone in your practice, are not utilizing anymore? We often see that there are software platforms that the office signed up for a few years back because Becky thought it was more efficient than another. However, Becky has been gone for 3 years and no one even has the password to get into it. Recommended Action: Enlist your team to review every software subscription that you pay for to see if it is still a needed service. Some may ‘want’ to use it but do not know how. Allow them to get trained on the updated uses of the platform.
Performance Reviews: Ah, the ol’ adult report card. These are dreaded by just about everyone. Yet they are a necessary evil for several reasons - you have it listed in your office manual that you will do it yearly and employees expect it to happen. If we can change our mindset from yuck to yippee, it might change the effectiveness of the process. Consider making it a conversation instead of a dialogue by the owner/manager. We like to have the employee fill out a form before the meeting in order to get their feedback on the operations of the office and their thoughts about their progress in their position. In addition to the annual review, consider a bi-annual ‘check-in’ with each employee to make sure that you are retaining your most valuable asset - your team. Recommended Action: At the conclusion of each review, have the employee schedule next year’s review on the calendar. This will prevent the last-minute need to put reviews together.
Salary Reviews: Not to be confused &/or included with the performance review. One is the about the employee and one is about the health of the practice. Staying ahead of forcing people to ask for a raise will help improve employee growth and retention. Not to mention, it feels so much better to tell someone that you are giving them a raise than for them to ask you; or worse, they go elsewhere looking for more money from another employer. Recommended Action: Once you have your final reports from the previous year, have a meeting with your accountant to determine who is due/deserves an increase in pay.
Become Digital Minded: All that paper, ink, folders and space to store it is a huge hit on your bottom line. Not to mention that once it goes in the file, who really remembers it’s there? Then it just gets printed again, because no one can find it. Recommended Action: Computers are here to stay. Invest in cloud storage and back-up. Get your team trained on all the software so that it is utilized fully. Limit the amount of paper - including all those colorful sticky notes all over the office - and get into this century. ☺
Why is all of this necessary?
It’s the economy, stupid! A phrase uttered in 1992 during a different presidential election. However, it’s the hand-wringing that I hear & see today that makes that phrase ring loud in my head.
Are you finding that the cost of everything is taking a bite out of your pocket book? Now more than ever, it is important to keep a close eye on every expense that is taken out of your budget. Take your foot off the autopilot and take control of your expenses.
Denise Ciardello, Consultant
Denise is co-founder of Global Team Solutions. A professional speaker and published author, her enthusiasm and knowledge about the dental profession has helped many dental teams. She brings experience, insight, and creativity into her management style, along with a sense of humor. In a profession that can cause anxiety in some dental employees.
Denise’s consulting approach is to partner with doctors and team members to help them realize the dream of creating a thriving, successful practice.
Denise can be reached at: denise@gtsgurus.com