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When you start your practice, understanding key performance indicators (KPIs) will be key to your success as a business. Yes, your practice is a business—and the sooner you understand that, the better! From the location of your dental practice to marketing and retention strategies to human resources and bookkeeping, there are a lot of parts to running a practice that don't have anything to do with dentistry itself.
There's a whole playlist on our Youtube channel with business tips from dentists and dental professionals just like you:
We're here to help! Let's dig into some of these KPIs to give you a broad understanding of how these indicators can help you understand the growth and overall health of your business.
Production refers to the amount of revenue received from each patient. Whether they are new or recall, their treatment cost equals your production amount. Additionally, other indicators fall under production and help you understand where you may want to focus efforts. These include production per visit, new patient acquisition, new patient visits, and your ratio of cases accepted out of cases presented.
This statistic is based on what the name implies—the average of how much each visit brings in. Of course, to maximize production overall, you have to maximize the production per visit.
In another post, we talked about figuring out your cost acquiring a new patient. Typically, these costs make keeping the clients you get in the door very important. Additionally, each patient who comes in needs to add to your production totals, so maximizing their visits is key.
New cases presented takes time, energy, and costs your practice money. The better you and your team get at getting those cases accepted, the better this statistic and the better your production.
These two together are key to your cash flow, and thus their importance in your tracking. Your practice spends money every day, but collecting from patients and insurance can take anywhere from 30 days to 90+ days depending on the situation. The more of your income that's tied up in collection or accounts receivable is less cash on hand. You can alleviate some of this strain by accepting credit cards, taking copays upfront, and offering discounts for full cash payment.
Overall, these KPIs give an important overall picture of your new dental practice, and that's why tab32 has designed an easy to view dashboard so you can see these numbers in real time. The better you are at tracking these statistics and making improvements, the better your production numbers will be. Want to learn more?