CONSULTING BLOG

Practice Metrics for the General Practice

By admin-tmfd on 26 January 15 Dales Blog

Our business engagement with a client begins with a thorough assessment of practice performance which requires collection of accurate past and present practice data in addition to the last three years financial statements. Prior to completing an on-site business assessment our client is given a detailed list of information to gather and forward to us for review prior to the on-site sessions.  We also request copies of all practice monitors and details about who interprets the data and how it is used to better the practice.

In most cases the client is able to collect all required information but typically does not include practice monitors. Even when practice monitors are sent they are rarely accompanied by an explanation of who interprets the data or how it is used to benefit the practice.

I can state emphatically gathering and interpreting practice metrics is one of the essentials for managi

Our business engagement with a client begins with a thorough assessment of practice performance which requires collection of accurate past and present practice data in addition to the last three years financial statements. Prior to completing an on-site business assessment our client is given a detailed list of information to gather and forward to us for review prior to the on-site sessions.  We also request copies of all practice monitors and details about who interprets the data and how it is used to better the practice.

In most cases the client is able to collect all required information but typically does not include practice monitors. Even when practice monitors are sent they are rarely accompanied by an explanation of who interprets the data or how it is used to benefit the practice.

I can state emphatically gathering and interpreting practice metrics is one of the essentials for managing a successful dental practice.  Each dental practice must determine the specific benchmark data they wish to collect and assess, however there are key metrics in a general dental practice. Practice performance monitors are a valuable tool for a business owner and practice manager and should provide a realistic snap shot of monthly practice performance, year-to-date and year-over-year statistics. Based on the review of the practice, business action plans can be developed and implemented to improve practice performance.

Practice Metrics

In a general dental practice the core monthly metrics could include:

Net production – ensure this data is consistently retrieved from a report illustrating “net” production

Net collection – ensure this data is consistently retrieved from a report illustrating “net” collection

Doctor production –if there are multiple doctors, run this data for all doctors, then by individual doctor (running individual statistics may reveal production issues with a specific provider that could be missed if evaluating only the practice overall)

Doctor collection – in multiple doctor offices run this data for all doctors, then by individual doctor (running individual statistics may reveal collection issues with a specific provider that could be missed if evaluating only the practice overall)

Measure collection – aim for 98% collection to production with a 2% allowance for bad debt (it is unlikely this target will be met every month but should be the yearend target)

Downtime – collect these statistics for the doctor(s) and hygienists with targets for the dentist being 3 – 5% depending on his/her patient load and 10% or less downtime in hygiene schedules

New patient flow – this data should be taken from a billing report by procedure code in a specific date range (new patient data can be incorrect in offices completing existing adult patient comprehensive examinations as they use the same billing code 01103 as adult new patients)

Patient attrition – the number of patients not participating in the recare system in the last 6 – 12 months (this does not mean patients have left the practice rather it shows patients not participating in hygiene services)

New emergency patients – collect from a billing by procedure code report then assess the conversion rate for emergency new patients to comprehensive new patient examinations (this will require an internal method of tracking conversion and usually can be tracked using dental practice management software)

Hygiene patient retention – a measure of the number of patients eligible for hygiene in a given month compared to the number treated which is an indication of an effective recare system

Wages – each month calculate the percentage of wages as an expense with a target in the range of 25 – 28%

Dental Supplies – each month calculate the percentage of dental supplies (no repairs or small equipment) as an expense with a target in the range of 5 – 6%

These metrics are a starting point. As you consistently evaluate these areas of practice performance it will become easier to seek solutions and implement enhancement plans. When the core performance indicators are routinely gathered you can expand data collection.

In closing, measuring a few core areas of practice performance and interpreting results is better than copious spreadsheets compiling data for data sake.

For comments or questions contact Dale Tucci at 416.450.8769 or dale@daletucci.com

 

ng a successful dental practice.  Each dental practice must determine the specific benchmark data they wish to collect and assess, however there are key metrics in a general dental practice. Practice performance monitors are a valuable tool for a business owner and practice manager and should provide a realistic snap shot of monthly practice performance, year-to-date and year-over-year statistics. Based on the review of the practice, business action plans can be developed and implemented to improve practice performance.

Practice Metrics

In a general dental practice the core monthly metrics could include:

Net production – ensure this data is consistently retrieved from a report illustrating “net” production

Net collection – ensure this data is consistently retrieved from a report illustrating “net” collection

Doctor production –if there are multiple doctors, run this data for all doctors, then by individual doctor (running individual statistics may reveal production issues with a specific provider that could be missed if evaluating only the practice overall)

Doctor collection – in multiple doctor offices run this data for all doctors, then by individual doctor (running individual statistics may reveal collection issues with a specific provider that could be missed if evaluating only the practice overall)

Measure collection – aim for 98% collection to production with a 2% allowance for bad debt (it is unlikely this target will be met every month but should be the yearend target)

Downtime – collect these statistics for the doctor(s) and hygienists with targets for the dentist being 3 – 5% depending on his/her patient load and 10% or less downtime in hygiene schedules

New patient flow – this data should be taken from a billing report by procedure code in a specific date range (new patient data can be incorrect in offices completing existing adult patient comprehensive examinations as they use the same billing code 01103 as adult new patients)

Patient attrition – the number of patients not participating in the recare system in the last 6 – 12 months (this does not mean patients have left the practice rather it shows patients not participating in hygiene services)

New emergency patients – collect from a billing by procedure code report then assess the conversion rate for emergency new patients to comprehensive new patient examinations (this will require an internal method of tracking conversion and usually can be tracked using dental practice management software)

Hygiene patient retention – a measure of the number of patients eligible for hygiene in a given month compared to the number treated which is an indication of an effective recare system

Wages – each month calculate the percentage of wages as an expense with a target in the range of 25 – 28%

Dental Supplies – each month calculate the percentage of dental supplies (no repairs or small equipment) as an expense with a target in the range of 5 – 6%

These metrics are a starting point. As you consistently evaluate these areas of practice performance it will become easier to seek solutions and implement enhancement plans. When the core performance indicators are routinely gathered you can expand data collection.

In closing, measuring a few core areas of practice performance and interpreting results is better than copious spreadsheets compiling data for data sake.

For comments or questions contact Dale Tucci at 416.450.8769 or dale@daletucci.com

Leave a Reply

Your email address will not be published. Required fields are marked *