If you want your dental practice to grow and be as efficient as it can possibly be, then you must make sure you’re tracking the right KPIs, or Key Performance Indicators. Doing so can substantially enhance your understanding of how the practice is performing, and help you identify key areas of improvement. How? By simplifying monitored data and shifting your focus to essential metrics such as practice production indicators.
Working with accounting services for dentists can guide you towards the most useful KPIs; the ones that will help provide you with practice performance insights you can immediately action.
Ultimately, it’s important to see your practice’s numbers as something that can give you power over your own success, and investing your time and resources into measuring them, is always going to be worthwhile.
Here are some key practice production indicators that are always worth measuring, whether you do so yourself, or hire professional accounting services:
The uber number
Reflecting your practices overall financial health, the uber number – otherwise known as the production number – is an essential KPI. For sustained growth, for example, setting increase goals for annual production of up to 18% can be helpful, but it’s equally important to track daily production goals so that you be sure you’re going to meet annual targets.
Production per day
Having a daily production goal as the owner of a dental practice is strongly recommended, as is tracking it. Monitoring daily production means that you don’t have to wait until the end of the year to discover how the practice performed.
Production per patient
If your dental practice has a high volume of patients, managing this particular KPI effectively, can present a significant challenge. However, if you put the effort in and are able to manage patient numbers effectively, you’ll find they can still be fruitful. If production per patient numbers are lower than anticipated, strategies should be explored to try and increase this to meet the practices goals.
Production per hour
In this KPI, enhancing the performance of your practice comes down to the making of micro changes, such as saving a few minutes every hour on a four-day workweek, which gives you the ability to add a couple of months of production every year, without having to increase workload.
Production per new patient
Although many dental practice owners recognize that new patients are crucial to their overall success, they might not fully understand why. To put it in its simplest terms, when compared to existing patients, new ones are worth twice, if not thrice more in revenue terms during their first year.
What this really means is that a new patient is capable of helping a practice generate as much as 300% more income. Attracting them and making sure there are slots available for them, becomes essential.
Seeking professional help from specialists in dental accounting is the most effective way to get to grips with the above KPIs, and give your dental practice the very best opportunity of thriving in a highly competitive industry. Although their help doesn’t come for free, what you could save, and what you could enhance in terms of profitability by hiring them, makes it a lucrative and worthwhile investment for most dental practitioners.