Size Matters

Within the artistry of dentistry, attention to details and numbers affect the end result.  The same applies to the business of dentistry.  Size matters.  Numbers make a difference and it is not all about being big.  The Doctor with the largest gross is not the winner if the net return is 20%.  Why do you choose to work so hard for so little return?

Dentistry is a lot like fishing stories.  We remember the largest number we ever produced and round it off to the nearest hundred in speaking with other dentists.  Do we ever mention net or numbers that count?  I remember as a rookie dentist, hearing those boasting conversations and being frustrated because I thought they were true and I also thought gross mattered.  No one ever mentioned net. 

Paying attention to practice numbers ensures an excellent outcome, just as in your technical work.  Ignoring numbers is a choice which can result in numbers moving in the opposite directions rather then having a good result.  Slipping, sliding and guessing are not so good when size does matter. 

A million dollar practice should net $400,000.  Why would you work hard to produce a large gross and take home less?  Which would you rather have—a practice gross of $800K and a net of $350K or a practice gross of $1M and take home of $200K?  These are choices we make about size.

Let’s examine more “sizes.”  Not only is there a choice about gross and net, there is also a choice about numbers of new patients and case acceptance.  Some dentists are crying for more new patients yet lack the skills of relationship and discovering dreams and wants. New patients are wasted in this environment.  With current sales training, you can do well with one quality new patient a day. 

Instead of large new patient numbers, it takes focused sales skills where conversations are not about NEED and pressure to purchase.  Relax. Find out who they are, what they want and how you can help them.  Every team member needs to be on board with good personal skills.

Another place where size does matter is the percentage spent on staff salaries.  A general practice should goal at 20% of production spent on team salaries, taxes and benefits.  We have seen practices as high as 39% spent on team.  Now, that is a big number, not one of which to be proud.  A dentist would be working hard to support the team.  How does it get so big?  Many reasons but it basically occurs because of an absence of real leadership and planning.  A better question is “how can I get my staff costs into line?”  Even a million dollar practice can operate with three team members plus the Doctor.  Yes, they need to be the right team members.  Keep looking until you find the right ones instead of hiring three to do the job one could do. Work shouldn’t be noisy.

Now, size matters regarding the Doctor, too.  If you are a seasoned veteran and taking over 60 minutes to routinely prepare a crown, you have a case of the “slows.”  Combine that with a staff of six and you are working hard, very hard. Take more classes and create efficiency skills in the treatment room.  Work from a laminated checklist and avoid being a “diddler.”

Size matters in scheduling treatment.  If you do not know your overhead per hour, how can you cover it each hour? A big overhead and little income is not a pretty thing. Combine an 80% overhead with a team of 6-8 all involved in the Crown of the Year Club and dentistry is not so fun.  An average overhead is about $250-$300 an hour.  Do you have a goal of covering your overhead per hour?  Consider, too, just reaching your overhead per hour is a tie game.

Size matters in the relationship of your lab bill to production.  It is very difficult to make a good living in the Crown of the Year Club.  You lab percentage should be in the 9-11% range for a general practice which means you are diagnosing beyond the magic insurance maximums.  Congratulations!  You are the right size.

Size matters.  You want a higher lab bill, a lower team percentage, a bigger net vs. gross, and a higher case acceptance from fewer quality patients. Goal for the right numbers to be large, some to be small and size does matter. 

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