A dentist's guide to managing key performance indicators (KPIs) for greater productivity and efficiency.
Wednesday, October 1, 2014
Your active patients—the number of patients visiting your office in the past 18 months—is the #1 KPI because it affects the current and future cash flow of your practice.
Ensuring that patients are scheduled to return for their hygiene visits every six months also helps maintain and increase your active patient base (KPI #1).
An average production mix of 65–75 percent for doctors and 25–35 percent for hygiene is ideal.
The way you manage your accounts receivable, particularly your production-to-collection ratio, determines your profitability.
The best way to be successful in this new dental economy is to maximize the productivity and efficiency in your practice. How? By understanding and managing the key performance indicators (KPIs) in your practice on a regular basis.
Just like your blood pressure, body weight and cholesterol numbers indicate your physical health, your KPI numbers indicate the financial health of your practice.
Monitoring your KPIs and taking action to improve them can help you eliminate waste, optimize production, improve efficiency and drive higher profitability. Mastering the metrics that matter gives your practice a competitive edge.
About the Author
Tammy McHood is a senior product manager for Henry Schein Practice Solutions. She has an MBA from Brigham Young University and 20 years of experience in dental practice management. Tammy led development of the Dentrix Practice Advisor Report, the Dentrix Daily Huddle Report, and the Dentrix Profitability Coaching Program. She is passionate about helping dental practices succeed by maximizing best practices with the tools in Dentrix.