“Dental practice value” not only refers to it’s profitability but also refers to the overall quality of dental care and the patient experience provided by the practice. This includes factors such as patient satisfaction, clinical outcomes, safety, accessibility, affordability, and adherence to professional standards and guidelines. All together, it measures the excellence of services rendered by the practice in promoting oral health and the overall well-being of the patients. All of these factors will contribute to practice value. There are way too many important KPIs to properly deal with in the length of a blog. This blog is going to deal with only one KPI from each of the major KPI categories. If you are interested in a more exhaustive review of practice KPIs watch for my upcoming book “Crushing Your KPIs”.
KPIs, or Key Performance Indicators, are measurable values that demonstrate how effectively a company, in this case, a dental practice, is achieving its key business objectives. These indicators vary depending on the organization’s goals but usually include several different metrics. KPIs do not fix deficiencies themselves. Rather, they point them out so that you can then fix them. This article will explore one of the key metrics from some of the critical, but not exhaustive, areas of the practice as follows:
- Financial
- Operational
- Clinical
- Patient Experience
- Dental Technology
- New Patient Acquisition
Financial KPIs
Revenue Growth – Revenue growth and sustainability is one of the most important Financial KPIs and ensures that the practice remains financially viable. It covers operational expenses, salaries, equipment maintenance, and new technology or staff training investments. Without steady revenue growth, a practice may struggle to remain financially viable and even face closure risks. Most importantly, revenue growth is an indication that the practice is growing, not waning. All of life is a dynamic experience, so it is important to know that you are on the upside of that experience. Continually monitor your revenue, month over month, to ensure you know your side of the curve and that it points up. If you find you are on the wrong side, that is your sign that something is wrong and needs to be fixed.
Operational
Staff Turnover – Staff turnover is a critical Operational KPI. It can be expensive due to recruitment, training, and onboarding costs. By retaining experienced employees, dental offices can reduce these expenses and allocate resources more effectively, contributing to financial stability and profitability. In large enterprises, something called the “Turnover Rate” is calculated. Most dental offices are much smaller and do not warrant such calculations. Typically, more than one voluntary resignation per year is an indication that the employee environment is in need of enhancement.
Clinical
Case Acceptance – Case acceptance is critical if the practice is to provide substantial comprehensive treatment. An acceptable case acceptance rate can vary depending on various factors, including the practice’s location, patient demographics, types of services offered, and the effectiveness of case presentation techniques. However, a general benchmark for an acceptable case acceptance rate is typically considered to be around 70% or higher. High-case acceptance alone does not indicate that all is well – it must be considered also in terms of the number of cases presented. However, each dental office must evaluate its case acceptance rates regularly and strive for improvement over time. Monitoring trends, identifying areas for enhancement, and implementing strategies to address barriers to acceptance can help optimize case acceptance rates and contribute to the practice’s overall success. As a side note, dentists may want to discuss their treatment planning rates with colleagues or qualified consultants.
Patient Experience
Waiting Room Time – Recognizing and respecting that patients have busy schedules and other commitments can help prioritize timely appointments. Practices that prioritize punctuality and minimize wait times demonstrate respect for their patients’ time and may enjoy higher patient satisfaction levels as a result. An acceptable dental office reception waiting time can vary based on several factors, including the specific circumstances of the appointment, patient expectations, and the efficiency of the practice’s operations. However, in general, most patients consider a waiting time of 10 to 15 minutes or less to be acceptable for routine appointments. While a waiting time of 10 to 15 minutes or less is generally considered acceptable for routine appointments, practices should strive to minimize wait times whenever possible to enhance the patient experience and satisfaction. Regularly monitoring and evaluating wait times, soliciting patient feedback, and implementing process improvements can help practices optimize their operations and reduce waiting room wait times.
Dental Technology
Technology Gains – Currently advanced dental technology can benefit a practice in many ways however, one of the greatest is in increasing the treatment efficiency and patient throughput. Track the number of patients seen per day or per hour before and after implementing dental technology. Increased patient throughput indicates improved efficiency in scheduling, treatment delivery, and workflow management facilitated by technology. Working with the high-tech that is currently available for dental offices will increase patient through-put significantly. For example, compare the time required to perform specific procedures before and after adopting dental technology. Decreased treatment times indicate improved efficiency, enhanced clinical precision, and optimized use of technology during patient care. If you are using technology and you are not experiencing greater patient throughput, then this is an indicator that something is not working properly and that you should seek professional advice.
Patient Acquisition
New Patient Flow – The average percentage of new patients per month in a dental practice can also vary depending on factors such as the location of the practice, its marketing efforts, the size of the patient base, and the demographics of the local population. However, a common benchmark for the percentage of new patients per month in a dental practice is around 20% to 30%. This means that, on average, 20% to 30% of the total patient appointments scheduled in a given month are with new patients who have not previously visited the practice. This percentage can fluctuate based on various factors, including seasonal trends, changes in marketing strategies, and the overall growth of the practice. It’s important to track and analyze new patient acquisition rates regularly to assess the effectiveness of any marketing efforts, referral programs, and patient retention strategies. By monitoring trends in new patient acquisition over time, practices can identify opportunities for improvement, allocate resources more effectively, and ensure sustainable practice growth.
Conclusion
Overall, monitoring KPIs in a dental office is essential for driving performance improvement, enhancing patient care and satisfaction, optimizing resource utilization, ensuring financial sustainability, and fostering a culture of continuous improvement and excellence. The KPIs noted above are only a very small selection of the KPIs that need to be monitored on an ongoing basis. If an office can get into the habit of tracking even the KPIs noted above then it will be easy to expand that process to monitor a more complete roster of KPIs. If you are interested in learning more about KPIs and the ways to monitor them connect with Derek Hill (derek@derekhill.ca).