Running a dental practice without measuring Key Performance Indicators (KPIs) is like driving a car blindfolded; you probably won't reach your destination without leaving a path of carnage in your wake.
KPIs are the figures that represent the results of your efforts to achieve your practice's unique goals. Every dental office is different, and factors like size, location, services offered, etc., all play a role in determining which KPIs you should be tracking. These metrics can more efficiently steer your dental company toward your brand and financial goals.
Metrics provide mission-critical insights to help your dental practice run profitably. However, if you have some doubts about how invaluable this information is to your business, consider these three primary reasons for prioritizing your data analytics capabilities:
Don't wait until the end of the year to have your accountant determine how well your dental business did. While your primary focus may be on providing your patients with high-quality care, setting aside a bit of time each week or month to review KPIs can help maximize your success every year.
If you're one of those dental practice owners who don't have a good handle on tracking your metrics, get started with these four top KPIs. These are crucial to creating a successful growth strategy and support your vision of offering the best oral healthcare available to your patients.
Your productivity metric is one of your most important. It helps you identify specifics about treatment types and frequency and determine which services aren't as popular. Another beneficial aspect of this KPI is its ability to link patient volume to treatment acceptance rates which gives valuable insight into why you may be experiencing lulls.
Production is one of your most important KPIs, but collections directly impact your cash flow. Ideally, your office needs to collect 98% or more of any accounts owed after applying discounts and insurance adjustments. This can sometimes be easier said than done, and your metric tracking can help your accounts team develop an effective strategy to reach this goal.
If you didn't realize, productivity and revenue are apples and oranges, though one is directly impacted by the other. While your dental practice could be operating at 100% efficiency, your revenue metric will reflect this reality if your collections team isn't collecting everything billed out.
But, your practice likely has at least one insurance plan it participates in, and the adjustments will also affect your total revenue. So, whether you rely on a fee-for-service model or incorporate PPOs, your revenue metric can help ensure your collection process meets your financial goals.
To effectively track your dental company's profits, you need to measure multiple factors, including:
How high or low your overall margin depends on the costs coming out of your collected revenue. Still, this metric is especially helpful when evaluating the profitability of different dental treatments and procedures you provide. For example, you can determine supply costs versus your service rate and look for a more affordable supplier or charge your patients more to improve this KPI.
With these four primary KPIs on your radar, you need to track them effectively and have a way to translate what all the data means for your dental practice. You may be thinking you could just use a spreadsheet and drop in the numbers each week, but ultimately this is not sustainable and prone to human error.
Luckily, dental practice analytics software has a much better way to track your metrics. Even if you already have a PMS, it may not offer the robust features of newer products, such as:
These state-of-the-art management systems become digital assistants for dental companies and provide a high-level snapshot of their financial health. In addition, providers like Adit incorporate an intuitive dental dashboard that makes analyzing KPI data less complex. This centralization of your data tracking makes it easier to take a practice-wide approach to your business strategy.
Whether you own a solo practice, are a DSO member, or have several dental branches, practice management software is essential to adequately track and analyze your business metrics. When deciding which platform is best for your practice, keep the following five factors in mind during the decision-making process:
One of the primary benefits of PMS for dental offices is enhancing patient experiences and outcomes with the improved functionality they provide.
Some frequently sought-after features that you should look for in any platform you consider are:
If your dental clinic provides specialized care, such as oral surgery, look for additional features specific to your practice area. Also, consider patient needs and expectations, such as extra reporting features for Medicaid/Medicare claims.
Scalability can directly impact the functionality of any management software you implement in your dental office, so make sure it can grow with you.
Business data and KPIs get left on the back burner for many dentists until issues arise. With suitable data analytics feature, you can monitor crucial metrics that directly impact the success of your business, such as:
You can't set future business goals for your rental company if you aren't keeping on top of these numbers. Fortunately, practice management software makes this process a breeze with automated processes and state-of-the-art AI algorithms for advanced reporting.
Do you already have a dental management system but just need to add some new features? Many providers offer more unique analytics integrations, saving you money and training time. Adit, for instance, provides products that work seamlessly with other popular systems. So, if you already have digital imaging or marketing tools, you may be able to only integrate a new billing and payment module instead of implementing an entirely new package.
Software support for any dental practice management software should provide ongoing product support and updates for the life of your platform. You need more than just installation help; you need a supportive partner that helps you maximize the benefit to your practice with their product. Always find out what level of transition support your PMS service provides and who has access to this feature on your team.
Even if you have a tech-savvy team member who could train the rest of your office on how to use a new PMS, this costs you valuable productivity time. Instead, go with a provider with dedicated trainers who are willing to come on-site or meet virtually with your staff to handle training.
Cloud-based software typically has a simplified onboarding process due to its intuitive nature. However, the goal of switching platforms or integrating new analytical features is to streamline and boost performance. So, readily accessible training is necessary to achieve better efficiency.
Taking a more modern approach to managing your business starts with tracking the right metrics with the best digital analytics tools. Knowing how much revenue your dental company generates from recalling patients, collections, and treatment costs are essential. Adit helps you quickly access your most important KPIs, including:
Trust Adit and our helpful support team to help you analyze KPI data and leverage these insights to create a thriving dental practice. Our developers continuously provide cutting-edge technology and automated features that will provide quality analytics that helps you develop actionable steps to become more successful.
Schedule your free demo today to learn more about our platform and how it could benefit your current financial strategy.
Angela is a former English teacher turned marketing content specialist. Over the past 10 years, she’s developed marketing strategies to forge enduring bonds between B2B, B2C and SaaS companies and their clients through holistic education, effective communication, and captivating storytelling that moves audiences to act.
Offer ends May 31, 2022, and is limited to prospective customers who participate in a Adit services demonstration and are actively employed by a dental practice. by May 31, 2022. No purchase of Adit services is required. The $50 Amazon gift card will be emailed to the company participating in the demo within 4 weeks of completion of the demo. Offer may not be combined with any other offers and is limited to one (1) gift card per office. Offer is not available to current customers or to prospective customers or individuals that have participated in a Adit demo during the prior six (6) months. Recipient is responsible for all taxes and fees associated with receipt and/or use of the gift card as well as reporting the receipt of the gift card as required under applicable federal and state laws. Adit is not responsible for and will not replace the gift card if it is lost or damaged, is not used within any applicable timeframe, or is misused by the recipient. Adit is not responsible for any injury or damage to persons or property which may be caused, directly or indirectly, in whole or in part, from the recipient’s participation in the promotion or receipt or use of the gift card. Recipient agrees to indemnify, defend and hold harmless Adit from and against any and all claims, expenses, and liabilities (including reasonable attorney’s fees) arising out of or relating to a recipient’s participation in the promotion and/or recipient’s acceptance, use or misuse of the gift card. This offer is sponsored by Adit Communications, Inc. and is in no way sponsored, endorsed or administered by, or associated with Amazon.
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