Maintaining a successful dental practice relies on several critical factors, including patient retention, production and staffing.
Barry Lyon, DDS, a chief dental officer for the division of orthodontics and pediatric dentistry for Dental Care Alliance, recently spoke with Becker's about what dental practices can do to remain competitive.
Editor's note: This Q&A is part of a weekly series featuring Dr. Lyon focused on topics in the dental industry and DSO field. This response was lightly edited for clarity and length.
Question: What do dental practices need to do to stay competitive?
Dr. Barry Lyon: Competition for new patients is very keen. Not only do patients have their pick of dental offices, they have the advantage of social media to research and be selective with the dental office they wish to visit. As far as dental patients are concerned, it is a buyer’s market. What must a dentist do to remain competitive?
Most dentists focus on providing patients high quality and appropriate care, while the all-so-important business side of dentistry is often neglected. By doing so, the practice is at an immediate disadvantage. Clinical success alone is not enough to grow a dental practice. A sound business plan along with controlling expenses and establishing a positive cash flow allows the dentist to make improvements to the office, acquire up-to-date technology and hire a competent staff. While some dentists may think running a successful business is antithetical to providing dental care, combining both allows a practice to be competitive.
Along these same lines, it is not enough for a dentist to only know how much money comes in and how much goes out. Running a competitive practice means keeping score of several important factors to measure the success of the practice. These factors are called Key Performance Indicators, and they take the pulse of the practice. Some examples include EBITDA, average production per patient, number of new patients, referral sources of new patients, staffing costs and overhead, in addition to practice production and collections.
Critical to the continued success of a practice is developing a cohesive and loyal staff. Many dentists would say this is one of the most difficult, if not the most difficult thing to do, especially in today’s unstable employment climate. Throughout the country, obtaining and retaining staff is a monumental challenge. Having a successful business plan allows the dentist to offer the most competitive salaries for the most capable candidates. Teaming up a business-savvy dentist with a talented staff is the foundation for strong customer service, a positive office culture and a practice that not only is successful, but appears successful.