Key for profitable dental practice - Dentee dental software

lets discuss the key metrics that are critical to the profitability of a dental practice. These Key Performance Indicators (KPIs) are available in the form of reports within a Practice Management System (PMS) or Dental Electronic Health Record (D-EHR). However, the reports are not obvious to track key metrics unless numbers are analyzed and tracked using additional software like excel or other statistical tool.

In today's age of Facebook and Twitter, one needs to track the growth of a practice and take corrective actions on time to stay profitable. However, in our experience most practices are under-prepared for such a dynamic action plan. Further, the new practice owners - starting new or purchased an existing practice, must be prepared to track these critical KPI's to plan for gross profit margins and break-even. Let's look at the key metrics and their breakdown: Production Collection Accounts Receivables Patient Visits Production per Visit New Patient Case Presented v/s Case Accepted

COST (FIXED & VARIABLE) Firstly, let's get Cost (C) out of our way, which most of the practices have good command. The fixed cost like office lease, utilities, loan re-payments, staff salaries and other overheads, is straightforward and accurately predictable. The variable cost are in small percentage of total revenue due to nature of business, and easy to predict (e.g. disposable inventory based on number of patients in month).

REVENUE DRIVERS Now for simplicity, let's assume that Revenue (R) is equal to Production - practically production depends upon Contracted Fees rather than billed UCR. However, it is still easy to track production but to understand the key underlying drivers of the production is extremely critical. These key drivers of production are: Number of Patient Visits New Patient Acquisition Recare Patient Production per Visit The relationship is quite simple, the number of patient visits - new or recare, multiplied by treatment cost is equal to production. Hence, to track the patient visits per month, and source of those patients is extremely critical. If a practice has this data in real-time then Clinic management software drivers can be leveraged to increase the production. For example, new patients' rate planned through additional networking or referral, Facebook advertisements, SEO, etc. Please subscribe to the blog, and shortly, I will discuss how to augment these drivers to fuel the growth using tab32's EHR.Clinic management software

LEARN MORE ABOUT CLOUD EHR DENTAL SOFTWARE COLLECTION & ACCOUNTS RECEIVABLES Lastly, tracking the rate of collection and cycle-time of accounts receivable is critical to keep positive cash-flow. To explain these interdependent variables we generally ask how fast a practice can collect either from patient or insurance? Generally, these receivables can take anywhere from 15 to 90+ days to collect and longer it takes higher the strain on the cash- flow because a practice is spending money today but collecting later. The patient collection cycle-time can be managed by collecting co-payments during visit, giving cash discount for upfront payment, accepting credit card, etc.

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