Learn what metrics you should track to help gain the most success in the new year.
Has your practice started planning for the new year? While there are several factors to consider, a strategic starting point is reviewing Key Performance Indicators (KPIs) that help evaluate the overall health of the practice. The Dentrix Practice Advisor Report can assist your team in analyzing data, reviewing KPIs, and establishing benchmarks as the new year approaches.
Initial KPIs to consider when reviewing your Practice Advisor Report include these four metrics:
KPI 1: Gross Production vs. Net Production
Looking only at gross production might give you a false sense of hopefulness. Net production is the true collectable amount and the indicator of actual revenue. The difference is the number of adjustments applied; evaluate this total when determining the difference between “being busy” and “making money.” This can be a revelation as to just how much “free” dentistry you deliver!
If the difference is significant or concerning, use the Adjustment Summary Report to see a breakdown of the adjustments done in the past year and the amount of each adjustment type. Determine what was in excess and set new guidelines for which adjustment types to use per situation. Also, consider who has permissions (security rights) to apply adjustments. You may need to write better descriptions for each adjustment type so your team knows the purpose and established guidelines for using each selection.
KPI 2: Revenue Cycle Management
The Practice Advisor Report includes outstanding insurance claim totals, the A/R-to-Production ratio, and the percentage of your revenue collected at the time of service. Understanding where your money comes from, which is necessary for setting realistic benchmarks for the over-the-counter collections, is also part of the metrics in the Practice Advisor Report.
The analysis of these KPIs on your Practice Advisor Report could also reveal where your team could benefit from improved processes and collection strategies, so your flow of income stays within the benchmarks you have established as right for you.
Henry Schein One offers solutions that will help you manage your collections in an efficient and timely manner. For instance, using Dentrix Pay allows you to set patients up on a payment plan with an autopay solution. Using eClaims is a viable solution to ensure your claims are paid within 30 days or less when submitting claims.
KPI 3: Active Patients
Your active patient base is an indicator of the continued growth of your practice. The Practice Advisor Report not only gives you the active patient number, but you will also see the total number of new patients who came to your practice this past year. How do these numbers compare? Are you losing more patients out your “back door” than you have coming in your “front door”? How many of your patients leave your office with their next hygiene visit scheduled? Is your marketing plan working? Are you capturing the referral sources for the new patients coming to your practice so you can evaluate your return on these investments? These are all additional KPIs on your report that relate to your active patient count!
KPI 4: Schedule Optimization
Since the pandemic, offices that once struggled with keeping their schedule full are now struggling with lack of sufficient time to address all their patients’ needs. In either case, evaluating KPIs such as average hourly production, unfilled hours, and the number of broken appointments not rescheduled will help in properly setting up the Appointment Book for meeting daily, monthly, and yearly production goals.
Henry Schein One offers a number of solutions for managing your schedule. There are tools built into the software to assist your team, such as Perfect Day Scheduling and a Daily Huddle Report. We also offer services such as Patient Engage, which provides features like online booking, online forms, appointment reminders, follow-up to missed appointments, and email campaigns.
Get Advice Based on Your KPIs
Every new year is an opportunity for a fresh start, and making sound business decisions based on reliable data is the first step to success. The Henry Schein One Practice Consulting team is equipped to coach dental practice owners and teams to use the data to implement change and stop doing more of the same.
We offer best practice solutions customized to your specific goals and aspirations for providing best patient care and business growth. No matter the challenges you face, whether it be staffing, schedule optimization, revenue cycle management, or practice growth…we can help!
Schedule a complimentary Business Assessment with a Henry Schein One Practice Specialist right now! During your 30-minute session, one of our specialists will review and analyze your Dentrix Practice Advisor Report. He or she will discuss your practice’s strengths and opportunities for growth with a customized plan that can put you on the path to greater productivity and efficiency.
Start this new year with the confidence to achieve your goals!
Visit Dentrix Profitability Coaching to learn more about our coaching service or to sign up for a free complimentary business assessment.
Download our FREE ebook Master the Metrics that Matter to learn more insights on improving your KPIs.
By Cindy Sipe – Manager, Henry Schein One Practice Consulting