Dental Practice Management: Take Control of Your Financials

Part of running a dental practice involves keeping track of finances, particularly where your practice is concerned.

As I read the morning paper, my eyes were drawn to the headline “NO ANSWER FOR STOCK FREEFALL!”  The article went on to report that the Dow Jones Industrial had plunged below 7,000 to a level not seen since 1997.  Clearly, from Wall Street to Main Street, we are in troubling times; and, unfortunately, our corner of the healthcare market is not immune to the effects of this economy.  From patients reluctant to accept treatment plans to recently-laid-off patients not keeping their appointments, we are being affected.  So, what is the economic situation of your practice?  And, more importantly, what are you doing about it?

Run your Dental Practice with Financial Good Sense

Take Control

Yes, as the owner of a dental practice, there are many things that you control and should do to enhance your practice’s financial performance, even during an economic meltdown.  Understanding what these things are and implementing them in your practice will determine how well you weather this economic storm.

To increase your practice’s financial performance, you’ll want to address three financial questions:

1. Are my collections where they need to be?
2. Am I effectively minimizing missed appointments?, and
3. Do I set and track my financial goals?

Maximize your Collections

A number of years ago, one of my colleagues became increasingly frustrated with his practice’s financial performance.  He complained that no matter how many additional crowns he cut or veneers he cemented, his cash flow remained stagnant.  Curiously, his increased efforts didn’t seem to have any effect on his practice’s overall financial performance.  So he did what many of us have done – he opened his practice to a consultant.  After just a few hours, the consultant found a glaring problem – his collections were at a pathetic 79%.

When times get tough, undercollecting or simply not collecting your hard-earned money is a mistake you cannot afford to make.  Most likely, you have paid thousands of dollars for computer software that was specifically designed to help you monitor your collections.  Software like Dentrix, DentiMax, EagleSoft, and SoftDent include great collection features.  If you have not been using your software’s financial tools, now is the time to start.  Familiarize yourself with your patient aging report and insurance aging reports.  With the proper aging reports, it won’t take a consultant to identify problems with your practice’s collections.

To read more on this topic, please click here.

DentiMax, LLC
4115 E. Valley Auto Dr.
Suite 101
Mesa, AZ 85206
(800) 704-8494
(480) 396-1798
http://www.dentimax.com