Beginning and running a successful dental practice

1. Beginning and running a successful dental practice Lecture #10

2. 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

3. 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…..

4. Cost per room • Chair $7000 • Stools $2000 • Light $3000 • X-ray unit $7000 • Delivery unit $9000 • Computer $5000 • Cabinets $5000 • Misc $5000 • ====================== • Total $41000

5. 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

6. 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

7. Running a business

8. Getting started-Deciding what you want to become • What makes the difference between average practices and high achieving practices? “

9. Practice mission statement “We believe in providing our patients The same quality of care That we would like to receive ourselves”

10. Expanded mission statement: Represents a general plan of action Our 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.

11. Making Goals • Educational goals • Facility goals • Operational goals • Financial goals

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

13. Marketing

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

15. 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

16. 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%

17. Managed Care • Cash only practice • Traditional insurance • PPO • Open vs closed panels • Capitation • Carefully consider the real impact of a discount

18. Management skills

19. 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.

20. 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.

21. 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.

22. 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.

23. 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.

24. Debt management

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

26. Minimize debts • Less expensive schools • Work while in school if possible

27. Prioritize debts: “Divide and conquer”

28. Neutralize debts, don’t trade them

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