Beginning and running a successful dental practiceLecture #10

Practice options GPR Military Serving in a rural, underserved community Associatships

Choose carefully Third party hired for forming the contract Don’t expect to start as the “boss”

Solo Practice

Cost of Setup Goodwill: Buying the reputation and

recommendation of a existing practice Building: Leasing vs. Owning Equipment: Frugality, patients don’t come for the

bells and the whistles Major purchases

Compressors Vacuums Pano Sterilization Etc…..

Cost per room

Chair $7000 Stools $2000 Light $3000 X-ray unit $7000 Delivery unit $9000 Computer $5000 Cabinets $5000 Misc $5000 ====================== Total $41000

Choosing a location One dentist to 2000 people “How far would a person drive to the

dentist?” Draw a circle and count the people and the

dentists Rural vs urban

Hiring Staff Hire to compensate for your weakness Start small and grow Finding and choosing an employee

Word of mouth Resumes IQ tests Working interviews Involve your staff in the decision Look for stability-Staff are not disposable items High energy, self starters, good personality-these are

skills that are hard to teach

Running a business

Getting started-Deciding what you want to become

What makes the difference between average practices and high achieving practices?

“

Practice mission statement

“We believe in providing our patients

The same quality of care

That we would like to receive ourselves”

Expanded mission statement: Represents a general plan of actionOur office is: A comfortable, clean, up to date facility. A place where our patients receive the highest quality dental care. A team of professionals who all work together toward common goals

in an atmosphere of love and appreciation. An office that stays current with the latest technology, skills and

concepts through a carefully chosen continuing education plan. A place where service to our fellow man is part of who we are. We

give in love without hope of honors or financial return. A place where we succeed financially as an office and as individuals.

Making Goals Educational goals Facility goals Operational goals Financial goals

Continuing education Look at education as a high return investment Make a plan, seek the best, Involve key staff members AGD

Marketing

External Marketing

Yellow pages Direct mailers Paid advertisements Expensive but requires little time Hit a large market quickly Patients are less committed, shoppers

Internal- Word of mouth Patients come pre-committed Exceed your patients expectations

Call at night Remember names and facts Talk to your patients, explain what you are doing

New patients are your best source if leads Takes time and creativity but little money Trust transference: become involved in other areas

and people will transfer trust

Cost of running a practice Average overhead is about 65-70%

Salary: About 25% of gross Lab: About 10% Supplies: About 6% Misc: About 24%

Managed Care Cash only practice Traditional insurance PPO

Open vs closed panels Capitation Carefully consider the real impact of a

discount

Management skills

Show Appreciation When employees are asked what it the most

important thing in their job surveys show that #1 is that they want to be appreciated. #2 is that they want to do something meaningful and #3 is pay. It won’t kill you to say please and thank you to your staff. You will be surprised how those two words will change the entire attitude of an office. We have a “Thank you board” in our office where people can write on the wall a thank you note whenever someone helps them. This board will fill up every day or two.

Practice what you preach . If you want people to be on time, you had

better be on time. If you want people to treat you with respect treat them with respect.

Deal with small problems so that you don’t have to deal with big ones When an issue arises deal with it as soon as

possible so that it doesn’t grow. The best way to implement a suggestion is to sandwich it between compliments. Tell an employee something that they are doing well, offer a suggestion for improvement and then tell them something else that you like in them. People can swallow medicine better when it is candy coated. Be free with your praise and careful and concise with your criticism.

Empower your employees Allow them to develop skills and then give

them your trust and allow them to succeed. The office is not a monarchy. You should treat your staff as peers. Listen to their opinions, ask their advice.

Pay your staff better than average Give them reasons for them to want to stay in

your employ. A well trained staff member is worth their weight in gold.

Debt management

Frugality Begin now Talk to your spouse-Get on the same page

Minimize debts Less expensive schools Work while in school if possible

Prioritize debts: “Divide and conquer”

Neutralize debts, don’t trade them

Share your blessings Look for local opportunities Partner with others International? Get more bang for your buck Begin now