1. The Data Driven Dental Practice
Mark Costes, DDS
American Academy of Dental Group Practice
Las Vegas, NV
February 1, 2018

2. Text “Freebook” to 42828

3. The Roach Coach

4. Costes Inc.
Flagship Dental Group- 14 Practices: Currently 10 in AZ and CA
Dental Success Institute
Horizon Schools of Dental Assisting 180+ locations
Book #1 : Pillars of Dental Success
Book #2 : Systems Driven Dental Practice
The Dentalpreneur Podcast

6. The Age of Really Big Information
Every day we create 2.5 Quintillion bytes of data. (That’s 18 zeroes)
25,000,000,000,000,000,000

7. This amount of data would fill 10 million blu-ray disks, the height of if stacked, would measure the height of four Eiffel Towers on top of one another.

8. The Information-Execution Gap

9. My Fantastic Four

11. Moneyball
2001 Oakland A’s and manager Billy Beane lose to Yankees in the playoffs and lose their three biggest stars to free agency (Jason Giambi, Johnny Damon and Jason Isringhausen)
Beane’s even bigger challenge: his budget is 1/3rd of richer teams in the league
How’s is he going to rebuild his team without his stars and without a budget?

13. Bean’s Solution… Data and Statistical Analysis
Hires Yale grad and statistical genius Peter Brand
Their hypothesis: standard agreed upon metrics in baseball aren’t the only predictors of success (RBI,BA,SB)
They recognized that more important stats were (OBA,SP)

14. The Plan
They hired a bunch of “Over the Hillers” and unknowns who were unwanted and hugely undervalued
Result: The team won the AL Championship, 20 consecutive games and made it to the playoffs in ‘02, ‘03

15. Mining for Data
Most dentists measure their practice’s success by tracking a limited number of metrics (Prod, Coll, NP)
Expanding the statistics that are tracked and measured increases clarity in the decision making process and facilitates growth and management opportunities

16. How to Play Dental Moneyball
Additional Metrics to Track:
Case Acceptance %
Production per hour
Missed Appointment %
Attrition Rate
Reappointment Rate
Active Patient Hygiene Percentage
Incompleted Treatment Total

17. Overhead/Expenses
Average in the United States: 68-72%

18. Overhead Numbers to Know
Payroll 30%
Lab Fees 9%
Dental Supplies 5%
Facility and Equipment 9%
Rule (Phase I) 60%
(Phase II) 55%
(Phase III) 50%

19. A Tale of Two Practices
Practice #1

21. Phase 1: 30-30-30-10 30 - Total Payroll
30 - Total Expenses (Fixed and Variable)
30 - Doctor’s Pay
10 - Profit
(-18.9)

23. A Tale of Two Practices
Practice #2

25. Phase 2: 30-25-30-15 30 - Total Payroll
25 - Total Expenses (Fixed and Variable)
30 - Doctor’s Pay
15 – Profit
22.5 – 26.5 – 25.7 – 25.3

27. Tale of Two: Practice Comparison
Practice Practice 2
Collections= $194, Collections $114,100
Expenses = $168, Expenses = $55,968
Overhead = 86% Overhead = 49%
Net Profit = -$15, Net Profit= $35,674
Debt Service= $18, Debt Service = $6,400
Available Funds = -$34, Available Funds= +$29,274

28. Tale of Two: Analysis $766,116 Annual Differential
P1 out-collected P2 by: $80,879
P1 Overhead 86% vs. P2 Overhead 49% = 37% difference
P1 Available Funds = -$34,564
P2 Available Funds = +$29,279
In comparison to P1, P2 has a +$63,843 cash flow swing per month
$766,116 Annual Differential

29. Lowering Overhead and Increasing Available Funds
Decreasing Variable Expenses
Overall Awareness of Profit and Loss Statements
Calculating cost-per-procedure expenses
Inventory control
Negotiating and shopping for supply savings
Negotiating with vendors and labs

33. Lowering Overhead and Increasing Available Funds
Decreasing Fixed Expenses
**Increase Revenue**
Negotiate PPO reimbursement
Increase service volume
Increase price per procedure
Increase case acceptance
Increase clinical suite

34. The Flagship Concept When to expand Centralization Executive Team
Organizational Chart
The Role of the CEO