How can I make my dental practice more profitable?
If the goal is higher profits you’ll make more of an impact by working smarter and not harder. Our team works to mitigate your tax obligations as well as guidance on increasing your revenue. Some of the possibilities include:
- Increasing Case Acceptance Rate - Only a small percentage of practices achieve the recommended case acceptance rate of about 80-90%
- Increase Insurance Reimbursements - Most dentists just accept whatever fee schedule the insurance company offers, but if you negotiate, you can often get a better deal.
- Add Procedures – Depending on your practice, you may want to get certified to offer periodontal treatments or qualify to offer Invaslign. What’s important is to regularly review your services and think about how you can enhance them.
To be sure you’re on the right path, you’ll need access to accurate financial data so you’re making informed decisions.
Learn more about our favorite practice software and how it’s helping practice owners.
Our dental practice overheads are out of control. Can you help us with that?
The first step is to get an accurate accounting of your operation expenses. Next, we can compare your information to industry standards, which will give some indication about where you should focus on cost cutting. Depending on your results, here are a few ideas for how to reduce costs for different expense categories:
Are your expenses in line with industry standards? Find out when you contact Engage Advisors.
- Personnel – To keep salaries in check, implement a bonus system based on the practice’s overall financial performance.
- Facility - Consider renegotiating your lease if you’re willing to make a longer-term commitment
- Laboratory – Shop around to compare prices, while always keeping quality your first priority
- Dental Supplies - Research the potential savings of using one vendor for all of your supplies
- Marketing - Track the effectiveness of marketing expenses and cut those that underperform
As a dental practice owner, I’m concerned about debt. Can you provide guidance?
For most dentists, debt is the cost of entry into the profession. The good news is that high debt isn’t a problem so long as it’s managed wisely. Here are a few tips:
For more savvy tips to manage debt, contact Engage Advisors.
- Smart debt – a loan to purchase dental equipment has the potential to generate a robust return whereas borrowing to buy a luxury car, or boat could become a financial strain. If cash flow is tight, be scrupulous.
- Student Loans – Consider consolidating multiple loans into one loan with the federal government. In addition to simplifying repayment, you’ll have the option to choose your amortization period, which can extend up to 30 years.
- Paying Down Debt vs. Investing – While investing and paying down debt are both good uses for any spare cash you have, investing is a better option if you can earn more on your investments than debts are costing you in terms of interest.
We struggle with PPOs, is this something that Engage Advisors can help with?
You are not alone. Practice owners are losing ground as insurance companies devise new strategies to reduce payments to dentists. PPO contracts have become so complex most practice owners don’t know what’s in the agreement, which puts them at risk for reduced reimbursements. To protect themselves, practice owners should conduct an analysis every year to understand the impact each PPO has on the practice. You may find that some PPOs are not worth keeping, and those insurance companies you want to continue working with, try renegotiating fees. If this idea seems overwhelming, contact PPO Advisors. They offer a free PPO analysis, that includes negotiating fees in advance so you can see what your return on investment will be before you decide to work with them.
Learn more about how our Dental Practice Management Consultants can help you profitably navigate the complex world of PPOs.
How can I create a fair bonus structure for my dental team?
A performance-based bonus system encourages teamwork and aligns individual effort with the success of the enterprise. A simple system could tie everyone’s bonus to the practice’s overall performance by measuring monthly collections. A more advanced system would be to set individualized bonuses that correspond to specific key performance indicators (KPIs) for each team member.
Get more provide advisory tips when you contact Engage Advisors today.
Cash flow is a constant issue. How can you help to improve this?
Better cash flow at your dental practice involves a combination of strategic financial management, operational efficiency, and patient engagement. Here are some ideas that can help:
Learn more about why cash is king when you contact our profit advisory team.
- Streamline Billing and Collections: Implement a system to reduce outstanding balances. For example, Offer various payment options, such as credit cards, online payments, and payment plans.
- Insurance Verification: Verify patient insurance coverage before appointments to avoid delays in reimbursements and have a dedicated staff member responsible for handling insurance claims and follow up on unpaid claims.
- Offer Flexible Financing: Make financing options easily accessible on your website and in your practice and offer easily accessible financing options on your website and in your practice.
- Inventory Management: Keep a close eye on dental supplies and equipment to avoid overstocking or running out of essential items and negotiate favorable terms with suppliers to reduce costs.
We are paying a lot in insurance – can you help us find better insurance plans for our dental practice?
Practice owners need to re-evaluate their insurance costs annually. This begins with identifying what policies you currently carry, the need for them and shopping for a better premium or coverage option. Typically, there is room for improvement with your life insurance and disability insurance. Engage Advisors can help you with all of this and more. We work with new graduate dentists through to retired dentists.
Give us a call to start your insurance review today.
My dental practice is going well, but I need help planning my retirement. Please help.
Congratulations on the success of your dental practice! Here are some steps you can take to help plan for your retirement:
Higher profits give you more options as you plan for retirement. Learn more when you contact our team.
- Set Retirement Goals – It’s important to think about what retirement looks like for you. When do you want to retire? What will you do? Where will you live? What lifestyle do you expect to maintain? Even if you eventually change your mind, this approach will help you estimate how much money you'll need to save.
- Maximize Retirement Accounts: As a practice owner, you have many ways to contribute to tax-advantaged retirement accounts such as 401(k)s, IRAs, or SEP-IRAs. All of these accounts offer tax benefits and can help your savings grow over time.
- Diversify Investments: In order to reduce risk and potentially increase returns, your retirement portfolio should comprise a diverse range of assets, such as stocks, bonds, and real estate.
- Review Practice Transition Options: Explore options for transitioning the practice, such as selling it, bringing in a partner, or handing it over to a successor.
- Healthcare Planning: Factor in healthcare costs, including insurance premiums and potential long-term care expenses, into your retirement budget.
- Regularly Review and Adjust: Your retirement plan should not be static. Periodically review your progress, adjust your goals, and make necessary changes to your savings and investment strategies as your circumstances evolve.