1. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 1 PowerPoint ® Presentation for Dental Office Management Module: Financial Management

2. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 2 Module: Financial Management Financial Management Part A: Appointment Scheduling Part B: Getting and Spending

3. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 3 Module: Financial Management Learning Objectives 1. Define the Key Terms. 2. Identify the principles, goals, and strategies of appointment scheduling. 3. Describe common expenditure categories. 4. Examine treatment codes in scheduling. 5. Summarize payroll procedures. 6. Discuss the manager’s role in supply inventory and equipment maintenance.

4. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 4 Module: Financial Management Learning Objectives 7. Demonstrate budget-writing skills. 8. Simulate schedule problem solving. 9. Contrast and compare payment methods. 10. Differentiate types of patient insurance. 11. Devise security precautions for drug inventory. 12. Evaluate the impact of scheduling policies and accounts payable/receivable on financial management of a practice.

5. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 5 Key Terms Automatic shipments Backorder Block/unit scheduling Call list Capitation Cash on delivery Coordination of benefits Credit invoice Direct reimbursement Double-book Electronic claims processing Electronic funds transfer Embezzlement Fixed expenses Flagging system

6. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 6 Key Terms Invoice Overhead Packing slip Petty cash voucher Purchase order Rate of use Reorder point Responsible party Restrictive endorsement Shelf life Signature on file Supplier/vendor Variable expenses Walk-out statement Warranty

7. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 7 Part A: Appointment Scheduling Strategic goals: –Production and profitability –Quality of care and patient convenience –Best use of dentist’s time and energy Basics: –Blocking out the schedule –Blocks/units of time –Multiple bookings –Treatment codes

8. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 8 Scheduling Strategies Identify and screen: –Special-needs patients –Emergency patients –Drug seekers Schedule a series of appointments Confirm appointments Manage late and no-show patients Manage recall appointments

9. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 9 Part B: Getting and Spending Accounts receivable Accounts payable Supply ordering Inventory management

10. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 10 Income and Outgo Accounts Receivable –Managed care –Third-party payers –Coding –Claims processing and tracking –Payment methods –Collections Accounts Payable –Invoices –Expenses –Office checking account –Other forms of payment –Payroll

11. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 11 Third-Party Payment Methods of payment Methods of payment Accounts Receivable Accounts Receivable Claims tracking Claims tracking One-Write system One-Write system ECP Managed care Managed care ADA insurance coding ADA insurance coding ADA claim form ADA claim form

12. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 12 Patient Methods of Payment Cash Personal check Private label dental care card Credit/debit cards Direct reimbursement Serial payment Cycle billing Finance plans

13. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 13 Accounts Payable Distribution of money owed: Writing and endorsing checks Depositing money Balancing the practice bank account Reconciling bank statements

14. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 14 Expense Categories Fixed expenses Variable expenses Personnel Occupancy Administrative Equipment/furnishings Clinical/dental supplies Lab fees Marketing costs

15. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 15 Overhead Examples Rent or mortgage Taxes Payroll Outside consultants Supplies Equipment Dental laboratory bills Utility Parking Marketing Insurance Maintenance Office cleaning Association fees Professional licensing Incorporation fees Miscellaneous

16. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 16 Payroll Records and Reporting IRS tax guide Employer identification number Employee withholding allowance certificate Employee earnings record Payroll deductions and deposits Federal unemployment tax Wage and tax statement Report of withheld income tax Payroll and tax record retention

17. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 17 Supplies and Inventory Types of supplies Types of supplies Quantity discounts Quantity discounts Supply order tracking Supply order tracking Quantities of supplies Quantities of supplies Computer ordering and inventory Computer ordering and inventory Warranties and repairs Warranties and repairs Managing Supplies

18. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 18 Supply Types and Quantities Types –Consumable –Disposable –Expendable –Equipment Quantity –Shelf life –Rotating stock –Storage considerations –Rate of use –Reorder point –Flagging –Controlled- substance storage

19. Copyright © 2006 Thomson Delmar Learning. ALL RIGHTS RESERVED. 19 Summary of Module Key Terms Dental-assistant career paths Dental team and office management Dental patient record ADA coding and the patient record Appointment scheduling Accounts receivable Accounts payable Practice supply management