Dentists, just like other doctors, regularly assess their patients’ overall health. They do this using the knowledge and experiences they have earned through the years. They employ a variety of techniques, technologies, and procedures to diagnose and treat patients.
Each dentist has a unique way of dealing with patients because of their practice and understanding. Just like how dentists and other doctors diagnose patients, there are also important metrics, tools, and procedures that can evaluate their practices’ condition. These are the key performance indicators (KPIs) that can determine what’s happening in a particular practice and help improve it if needed.
Dental Intelligence has come up with a probability formula to know whether a dental practice will become profitable. The Dental Intelligence Probability Formula goes like this:
Visits x Production Per Visit x Collection Percentage – Overhead = Profits.
It goes to show that a practice has to consider many things to gain higher profit. A profitable dental practice is a result of a lot of different moving pieces. In contrast to what many dental practitioners may believe, acquiring new patients is not as big of a deal when increasing your profit.
So what do you need to improve your practice’s health? Here are the five metrics you should be tracking based on the Dental Intelligence Probability Formula:
Annual Patient Value
Annual Patient Value is determined by computing collections per patient for all active patients. An increasing APV is a great indication that your practice is doing well. It also means that your patients are coming back for more treatments.
The APV tells you if you’re seeing your patients enough and how much you’re collecting from each of them. It gives you a deeper look into your practice’s health compared to PPV. For example, your APV is $500, and your PPV is $275. It means that you’re seeing your patients twice a year at most. From that, it can be implied that there are a lot of unscheduled treatments.
Pre Appointment Percentage
The Pre-Appointment Percentage, a pivotal metric in the realm of dental practice management, holds immense significance in understanding and optimizing patient retention. This metric is computed by evaluating how many of your active patients have already scheduled a future appointment during their current visit. Essentially, it provides a snapshot of how effectively you are retaining your recurring patients. A low pre-appointment percentage, typically falling in the range of 30% to 40%, serves as a red flag, indicating that a significant portion of your active patients might not be returning as planned. In essence, it points to a potential patient retention issue within your practice. This is a critical concern, as retaining existing patients is often more cost-effective and beneficial than acquiring new ones.
A low pre-appointment percentage not only underscores a missed opportunity to offer ongoing care but also diminishes your ability to increase production. It may signify that there’s room for improvement in your patient engagement and education processes. Ensuring that your patients understand the importance of regular dental visits and facilitating their scheduling for future appointments is pivotal to maintain a steady and consistent patient base. By addressing this aspect of your practice and enhancing the pre-appointment percentage, you can fortify your patient relationships, bolster your practice’s financial stability, and, ultimately, provide the comprehensive and continuous care that your patients deserve.
Production Per Visit (PPV)
Production Per Visit is an essential key performance indicator that dental professionals should closely examine. This metric provides valuable insights into the types and volume of treatments typically performed during each patient visit. It serves as a barometer of a dental practice’s overall health by offering a comprehensive view of treatment acceptance rates, patient volume, and changes in patient behavior. By tracking PPV, practitioners can gauge the effectiveness of their treatment planning and patient education efforts.
Additionally, it helps identify trends in patient treatment acceptance and allows for the timely adjustment of strategies, if necessary. A high PPV signifies that patients are accepting recommended treatments, leading to increased practice revenue and a more significant impact on patients’ oral health. On the other hand, a declining PPV may indicate the need for further patient education or improvements in the treatment presentation process. In summary, PPV is a critical metric that aids dental professionals in understanding their practice’s treatment dynamics and empowers them to make informed decisions to enhance patient care and practice profitability.
Hygiene Reappointment Percentage
The hygiene reappointment percentage is an important metric within the dental industry as it directly reflects the effectiveness of a dental office’s patient retention and overall revenue potential. This metric represents the percentage of patients who, following their current hygiene visit, proactively schedule their next hygiene appointment on the same day before leaving the dental office. The significance of this statistic lies in its implications for annual value and practice stability. When patients are proactive in booking their next appointment, it not only ensures a consistent stream of revenue for the dental office but also aids in maintaining a full schedule, reducing gaps in the appointment calendar, and preventing the loss of valuable patients.
A high hygiene reappointment percentage is a clear indicator of patient satisfaction and loyalty, contributing to long-term success in the dental profession. It also underscores the importance of efficient and patient-focused administrative processes within the dental practice, encouraging staff to facilitate and prioritize these follow-up appointments for both the benefit of the patients and the financial health of the practice.
Periodontal Treatment Percentage
Periodontal disease is a pervasive concern among the adult population, with a significant impact on oral health. According to a 2012 report from the Centers for Disease Control and Prevention (CDC), it was revealed that a startling 50% of American adults grapple with some form of periodontal disease. This fact underscores the urgency for dental practitioners to focus on this condition in their patient care strategy. Measuring the prevalence of periodontal disease within your practice is a crucial endeavor, as it not only sheds light on the scale of the problem but also reflects your effectiveness in diagnosing, educating, and enrolling patients in necessary treatments.
Achieving a percentage of patients with periodontal disease greater than 60% signifies that your practice is not only addressing this widespread issue but also effectively conveying its importance to patients. It indicates that your diagnostic processes and patient education initiatives are successful, ensuring that a significant portion of the market is receiving the required treatment. Such a statistic underscores your practice’s dedication to improving patients’ oral health, while also contributing to a healthier and more informed society overall.
A Final Word About The Profitability Formula for Dental Offices
Tracking and understanding these five fundamental metrics is crucial for enhancing your dental practice’s performance and overall success. These metrics cover patient volume, case acceptance rates, production per visit, hygiene reappointment percentages, and the prevalence of periodontal disease within your patient base. They offer unique insights into your practice’s strengths and weaknesses, providing a comprehensive view of its health. With this data, you can make informed decisions, strategize effectively, and improve patient care to help your practice thrive.
Once you’ve mastered these core metrics, you can explore more detailed key performance indicators (KPIs) like patient acceptance, patient diagnostic percentage, and treatment dollar acceptance percentage. These KPIs provide a deeper understanding of your practice’s performance and its ability to meet patient needs. While they might be challenging to change, they offer valuable insights into your practice’s effectiveness. Monitoring these KPIs enables you to identify areas for improvement and enhance the patient experience while improving your practice’s financial health.
Aside from tracking these metrics and KPIs, it’s essential that your dental office is well-equipped to provide exceptional patient care. SupplyDoc is here to assist by offering access to quality supplies and equipment. Whether you need clinical instruments, PPE, or office supplies, we ensure your practice runs efficiently. Contact SupplyDoc today to explore how we can support you in delivering top-notch patient care while optimizing your dental office’s efficiency.