Using
Systems to Take Advantage of Orthodontic
Success By Roger P. Levin, DDS
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Every orthodontic practice needs to know the answer to two things:
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1. What makes the orthodontic practice unique?
Levin Group has identified the following five characteristics as unique to orthodontics. Taken together, they position orthodontic practices for sustained practice success:
Barrier of entry. In order to become both a dentist and a licensed specialist, orthodontists are obligated to go through four years of dental school and then typically several more years in orthodontic residency programs. Those that make it through the process have the benefit of knowing that becoming an orthodontist is not something that others can accomplish quickly. Unlike some professions or jobs, the numbers of orthodontists will never double or triple overnight.
High volume offers potential for steady growth. In a situation unique to orthodontics, most procedures can be delegated to well-trained staff members who can perform high-quality procedures under supervision and final checks by the orthodontist. By doing so, the orthodontic practice can see more patients without compromising its ability to maintain excellent clinical quality and outstanding customer service. A volume-based orthodontic practice always has potential to increase productivity and profitability until a ceiling is reached. For many orthodontic practices, that ceiling is reached prematurely. Too many orthodontic practices operate far below their potential due to business systems that restrict the volume that practices could easily handle.
Patients are seen less frequently. Your clinical philosophy will decide how frequently you see patients. It is interesting to note that many practices do not see any patients on four-week intervals. Many top orthodontists predict that the interval of seeing patients will expand even further due to advances in both materials and technology. These longer intervals allow the practice to see even more patients without necessarily increasing the number of chairs, size of the office or number of staff.
Cases are finished in shorter periods of time. The fact that it is taking less time for many orthodontic practices to complete cases once again increases overall orthodontic practice capacity. This means that the orthodontic practice will be able to see even more patients because cases are finishing sooner. It also means that fees will be collected in a shorter timeframe if you are using the correct systems, and the patient will be under treatment for less time relative to the fee. The profit margin of an orthodontic case is increased by both the shorter intervals and shorter case timeframes.
Orthodontic care is a given to more people. Today, a growing number of people view orthodontic treatment as a standard expense when raising children. While patients have been slow to adopt cosmetic dentistry as an absolute necessity, they have clearly embraced orthodontic treatment. More adults are receiving orthodontic treatment. In fact, more employees are demanding orthodontic insurance coverage than ever before.
2. How can I take advantage of ortho opportunity?
Today's orthodontic practices are well positioned for success, but there are a number of obstacles that can prevent doctors from capitalizing on the above-mentioned opportunities.
The key to orthodontic practice success is effective business systems. While most orthodontic practices achieve respectable profit, many could do far greater. With few exceptions, the deciding factor is efficient business systems. In looking at its 20-year history of consulting, Levin Group finds that even those practices producing $1.5-$2 million or more per year frequently are relying on systems beyond their capacity.
Practices must implement documented business systems in each of the following areas: scheduling, referring doctor management, treatment coordinator process, patient financial management, insurance management, clinical efficiency, case management, and office communication.
However, what is the best way to evaluate the benefit of business systems to the orthodontic practice? Start by looking at overall stress levels in orthodontic practices. As volume increases in a practice, there will be a point where the practice appears to be overwhelmed. However, appearances can be deceiving. More often than not, the "overburdened" practice is simply using outdated business systems that do not work with higher volume levels. When volume exceeds systems capacity, stress results as do breakdowns in customer service.
Remember that changes cannot happen quickly. It is dangerous to think that revamping systems can be accomplished rapidly even after a one- or two-day meeting with a consulting systems expert. Often, there will be an initial backlash that impedes change.
Some orthodontists perceive the problem to be staff resistance to change, but this is not typically the case. As changes occur, there are aspects of those systems that were not addressed. A longer period of time is required to implement changes because each level of change needs to be carefully addressed and implemented. True mastery of the new volume model for orthodontics with a low stress level requires time for successful comprehensive implementation.
Summary
There are many reasons why orthodontic practices are healthy and are poised to stay that way in the future. Outdated systems may be limiting growth in even high-volume orthodontic practices. Such systems must be revised for the orthodontic practice to reach its greatest potential.
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Roger P. Levin, DDS, is founder and CEO of Levin Group, a leading dental practice management consulting firm that is dedicated to improving the lives of dentists through a diverse portfolio of lifetime services and solutions. Since the company's inception in 1985, Dr. Levin has worked to bring the business world to dentistry. A popular lecturer, Dr. Levin addresses thousands of dentists and staff worldwide each year in 100-plus seminars and at the dental industry's most prestigious meetings. |