Every once in a while, it’s a good idea to take a good internal look at your practice and see how it’s functioning. Kenneth I. Metsky, CPA and parter at Citrin Cooperman had the same idea, and he wrote an article “Top Five Issues Facing Dental Practices Today” for DentistryIQ.
In the article, Metsky lists what he calls a “cheat sheet of issues commonly seen in dental practices” and how to ensure your practice won’t fall victim to it.
- The economy. When it comes to blaming the economy for a downtick in your patient revenue, Metsky says don’t do it. “While all of us are affected by the economic downturn, do not let such trends be an excuse for not performing,” he writes. “Dental practice owners should take charge of their practices and educate patients on the importance of immediately addressing small dental issues, which, if left untreated, can turn into expensive health threatening issues.” A good way to combat a faltering economy is to create treatment plans with patents for issues that will result in negative consequences if left unchecked. The treatment plan is a great way to ensure the patients will return.
- Staff consistency and continuity. Make sure all staff members are on the same page. If the morale is low, correct it. Considering that a dental office is a place that often causes anxiety for some patients, it’s important that steps be taken to ensure a positive, drama-free, calm environment,” Metsky writes. “Patients are more likely to be at ease during their visit and willing to pay balances when they have a positive experience from the waiting room to the dental chair.”
- Create an annual budget. Metsky writes that most dental practices do not have an annual budget they operate from, and he encourages those who don’t have one to start by looking at last year’s financial data to use as benchmarks going forward into this year. “Don’t just prepare one and put it on the back shelf,” he says. “oday, with automated software programs such as QuickBooks, a budget can be prepared very easily and used as a tool to understand a practice’s financial data. Don’t fear the economics; embrace the data as a fact sheet about where the practice is heading and where it can go. Such measurements can help determine trends and indicate areas that need attention.”
- Review fee schedules. Metsky suggests taking a look at the last time fee schedules were updated and reevaluate fees if it’s been a long time. “Even small changes to routine procedures can mean significant progress in a bottom line,” he writes. “Strong financial policies with clearly understood accepted treatment plans will only benefit a practice.”
- Review internal controls over cash and receivable adjustments. When the revenue stream is good, Metsky says dental practices have the propensity to become complacent when ensuring receivables are retrieved. “Are collections reasonable, or are an alarming number of patients paying 60 or 90 days late?” Metsky writes. “Work with an accountant to create a policy for collections that is adhered to both in boom times and in slow periods.” He suggests asking patients for an upfront payment for significant treatment plans to ensure they don’t miss their scheduled appointment, which decreases the accounts receivable load.
While these suggestions seem simple, they have certainly proven to make a big difference for practices. Take the next couple days to find some time and review your practice. It will save you both time and money in the long run.
Resume Coach and Blogger at Dental Temps Professional Services
Katie Devereaux is a writer and editor, who graduated from the University of Florida with a Bachelor’s Degree in journalism. She has written for several publications in Florida, Alaska and Illinois.
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