Optimizing Operatories

Optimizing Operatories

Are Treatment and Production Walking Out Your Door?

How much recommended treatment is walking out the door of your office every day because you do not have a chair available to seat that patient and take care of them immediately? If a patient leaves with a recall appointment for treatment that could be done the day it’s diagnosed what are the odds that patient will return? Unless you have a 100% treatment recall rate you are losing the opportunity to provide patients with care they need in real time.

In a well-designed office there is always an unbooked operatory to relocate a patient from their hygiene exam, or scheduled treatment appointment in your chair, in order to execute the treatment discovered in the moment. The workflow and schedule of many doctors is driven by the notion that all chairs must be full of people at all times. Every successful practice strives for full and robust schedule with loyal and trusting patients who reliably keep their appointments. With an unbooked operatory, “pressure release valve”, to perform some procedures as they arise. You are capitalize on the opportunity to provide care on the spot very profitably.

Successful treatment planning should present the whole picture of each patient’s oral health care journey. Your patients accept your diagnoses and your recommendations because you have cultivated a relationship of trust with them. Your team has patients well trained and educated and when you find an issue they will be pleased that you have the option of immediate treatment available for them in that moment. Many patients might even accept the option for cosmetic dentistry such as whitening in the moment if it is regularly offered to them. You and your clinical team can feel more comfortable presenting and diagnosing treatment with the knowledge that you can accommodate the treatment for your patients in that open operatory.

I always recommend to my dentist clients that they consider the busiest times in their offices when they are looking to grow, and not the slowest. It seems logical to think of times when chairs are empty, or that day the schedule collapsed at 10 am and everyone was on the clock with empty operatories as the most important measure of lost production. I challenge you to reconceptualize the value of an available operatory and all those days when you could have added treatment when the patient was already in the office if you just had a place to put them.  Imagine saying, “We can take of that for you today if you have a couple of hours.”

In my experience I consistently see that an additional operatory yields approximately $250,000 a year in collections. That’s $2,500,000 over 10 years. If I am half right, or wrong that’s $1,250,000, or a million in profit. All that lost opportunity for production and exceptional patient experience occur because the office was too small, not too large! You can offer premium patient experience with less recall and waiting. Offer the now option. Any procedures you add to your existing schedule today are mostly profit (86%) since your fixed costs are already incurred. Lab and supply expense are incurred that’s it. Reschedule less, appeal to the customer and lower stress while increasing profits. Everyone wins.

 

 

 

Part III: The Three Biggest Mistakes Doctors Make When They Want to Grow

Part III: The Three Biggest Mistakes Doctors Make When They Want to Grow

Mistake #3: Playing it Safe

  1. Making decisions from a place of fear
  2. Thinking you can do it all yourself
  3. Not building and planning large enough to accommodate growth potential

I’ve talked about making decisions from a place of fear in the first blog in this series, and the mistake of thinking you can do it all yourself in the second one. The third biggest mistake doctors make is simply playing it too safe.

Many clients I’ve met over the years conservatively underestimate how large and successful they and their practice can actually be! Most doctors can manage a patient load of 1200-1500 patients and which can be accommodated by a 5 operatory office. The down side of conservative planning is that doctors reach the plateau of growth very quickly and outgrow the new facility while still paying off the loan for it. Each operatory generates $250,000 a year and over 10 years the revenue and collection on each treatment room is $2.5 million. If you short yourself the revenue from production, in even one operatory, by underestimating the value it brings, you’ll be making a very expensive mistake!

With the formulary I just described, and the correct location and strategy in place, we can pretty exactly determine how to build the business to achieve the financial outcome you are seeking. One of the only regrets I hear from doctors who have done projects with me is, “I wish I had made it bigger, or designed it so I could add more operatories.” A preoccupation with empty chairs blocks the pathway to growth and the space to treat patients and expand the dentistry you can offer in an efficient and timely manner.

Dr. Adam Lankford, Byte Dentistry, Windham, NH

Focus instead on having the capacity to handle your busy times. When you don’t have a place to put a patient, what is it costing your business to reschedule, or turn patients away during those peak times? They may not return at all, or change their minds while waiting for that next appointment. Planning your business capacity for busy times means creating the space for immediate treatment options and expands amount of dentistry you can offer. The ability to treat patients on the spot during their current visit is very profitable. Your incremental overhead is just the materials and a lab fee. That immediate treatment option for your patients can equate to 86% profit on that treatment. In a state of the art practice, offering the a convenient patient experience, I can say with certainty you will find all the patients you’ll need to meet, and often exceed, your goals for return on the investment.

Don’t make these common mistakes! If you are looking to start, looking to grow, or have reached a plateau in your business I can meet you wherever you are at in the process and work with you to plan for your goals. Take a look at some of my featured projects and read testimonials from doctors about their success stories. You can also fill out Getting Started forms on my website. Let’s meet to discuss ways we can work together to plan and build the successful modern dental practice of your dreams.

Read the Part I of this series, Making Decisions From a Place of Fear »

Read the Part II of this series, Thinking You Can do It ALL Yourself »

Part II: The Three Biggest Mistakes Doctors Make When They Want to Grow

Part II: The Three Biggest Mistakes Doctors Make When They Want to Grow

Mistake #2 Thinking You Can Do It ALL Yourself

Remember the very first dental procedure you ever did? The first time you do anything you actually learn a great deal from the mistakes you make. My role in the process of planning and executing growth for your practice is to eliminate the “learning curve” for your growth plan. I can save you money, headache, and false starts. Your years of experience, trial and error, and practice have made you the expert practitioner that you are today. You can now quickly plan complex treatment and build a team of experts or specialists when necessary that supplement and enhance more complex cases to achieve the very best outcome for your patients. I provide the same kind of expertise in dental business growth facilitation as well as a broad range of experts and specialists to customize the best plan for you which completely eliminates the need for you to learn from bad experiences.

Underestimating the complexity of a dental office project, the need for this winning strategy, and the customized planning that will achieve the outcome you are seeking, is the second huge mistake I see doctors make. It is so critically important to enlist an expert project manager and a partner who can, reliably and efficiently, combine all the factors you’ll need to optimize success. I carefully select a team of experts that I have worked with and vetted over the years in every area of the project from real estate, lease experts, financing, architect, designer, contractor, and our own technical experts from Patterson to collaborate with you on your particular project.

Many doctors think they can easily compile a team by asking a buddy who does real estate, or a friend who is a contractor, or the guy Dr. Smith used for his reception area remodel. Unfortunately, the vast majority of the people they find on their own have zero experience with the unique nature of a dental practice as a business. Just as you carefully orchestrate a complex treatment plan for a patient with a team of specialists and assistants to get the best outcome, the same care and consideration should be applied to the compilation of “specialists” who will treatment plan for the growth of your practice.

Don’t make these common mistakes! If you are looking to start, looking to grow, or have reached a plateau in your business I can meet you wherever you are at in the process and work with you to plan for your goals. Take a look at some of my featured projects and read testimonials from doctors about their success stories. You can also fill out Getting Started forms on my website. Let’s meet to discuss ways we can work together to plan and build the successful modern dental practice of your dreams.

Stayed tuned for Mistake # 3 Not Building and Planning Large Enough to Accommodate Growth Potential in my next blog!

Read the Part I of this series, Making Decisions From a Place of Fear »

Read the Part III of this series, Playing It Safe »

Part I: The Three Biggest Mistakes Doctors Make When They Want to Grow Their Practice

Part I: The Three Biggest Mistakes Doctors Make When They Want to Grow Their Practice

Mistake #1: Making Decisions From a Place of Fear

In the decades I have worked with doctors to help them build businesses and add greater overall value to their practices there are a few critical mistakes that I see time and time again. My experience and proven strategy for success can help you avoid these mistakes and make the whole process of enlarging, expanding, moving or starting a new practice as painless as possible.

The worst place from which to make any decision in life is a place of fear. I’ve found that the fear that blocks people from making big decisions really amounts to a lack of knowledge and insight. The more doctors learn and know about all the opportunity that is available to them, the more comfortable they become in formulating a growth mindset and a business plan to set goals and create a vision for the future of their practices.

Beginning with a comprehensive assessment we can analyze all of the thoughts and ideas you have about vision, location and opportunity. We can then determine a budget and a timeline. These are the key factors every doctor needs as the basis for confident business decision making. In my experience there is a sweet spot between being too conservative and regretting the lost opportunity and outsizing your capacity to manage the project. The conservative approach will limit your ability to get to the break-even point as soon as possible and start to realize return on your investment. I consistently see doctors who build or expand from a place of abundant caution and then regretting not enough operatories, or not investing in equipment and technology  that can expand the dentistry they can offer to patients.

When I meet with you I am prepared to evaluate the potential I see for you to maximize the business. Every doctor and practice is unique and every project and plan is custom. The math for growing your dental business is predictable and reassuring because it is based on a tried and tested formula.  My ultimate goal is to have every doctor I work with making decisions from a secure and informed place.

Read the Part II of this series, Thinking You Can do It ALL Yourself »

Read the Part III of this series, Playing It Safe »