I hope you never have to do it, but there are practices that currently—or in the future—will need a turnaround. A turnaround is just what it sounds like: turning your practice from being flat or declining back to growth. Even if you don’t necessarily want to grow your practice, if you don’t at least grow at the level of inflation, your profit and income will deteriorate, and your practice will be at risk.
The Three Components of a Practice Turnaround:
- The first component of turning around a practice is to reevaluate the numbers. After many years as the CEO of a leading dental management consulting firm, I am still surprised by how often we are contacted by doctors seeking help who do not have even a basic understanding of their practice statistics. One of the mantras we live by at Levin Group is, “You have to know the numbers.” If you do not know your numbers, you really have no idea what’s happening in your practice or why. In most cases, dentists can sense that production or profit is dropping, but they do not know the other numbers that are so critically important. By knowing the numbers, you also begin to understand where the areas are that need to be strengthened. Is it the number of new patients? Low case acceptance? Flat or declining insurance reimbursements? A rise in no-shows? Or other factors? You cannot begin your turnaround until you can clearly see where the practice is weak and where the opportunities are.
- Reevaluate the practice systems in great detail.When you are in decline, simple tweaks or changes will not make enough of a difference. You need to evaluate every aspect of every system. This will take approximately 12 months. The systems have to allow for the turnaround. For example, the scheduling system must have the capacity for at least 18% growth in the first year. Eighteen percent typically helps bring a practice back to higher production. Making a few changes or taking a one-day practice management course will not solve the problem. By evaluating and upgrading all of the basic practice systems, the stagnant or declining practice has the best opportunity for a successful turnaround.
- The third factor in a turnaround is the dental team. Some teams are suboptimal, and some staff members actually do not belong in the practice and are contributing to the decline factor. There are times, unfortunately, when a team member needs to be replaced (or maybe more than one). Dentists often fear trying to replace team members for many reasons, ranging from a dislike of confrontation to loyalty to long-term team members, fear of finding a replacement, and more. All of these concerns need to be set aside when a team member is contributing to practice decline. The best systems and knowledge of numbers will not compensate for a suboptimal team.
When Should You Start a Turnaround?
At the risk of sounding flippant, the answer is yesterday. When a practice is declining, the specific reasons must be addressed. Waiting always makes the turnaround longer and harder, and when a practice waits too long, it may no longer be possible to resurrect it.
It is always unfortunate to see a practice decline to a level where a turnaround is necessary. Fortunately, most declines in the earlier stages can be turned around successfully, allowing the dentist and team to return to an excellent career in a robust and growing practice.
ABOUT THE AUTHOR
Roger P. Levin, DDS, is the CEO and founder of Levin Group, a leading practice management consulting firm that has worked with over 30,000 clients to increase production. A recognized expert on dental practice management and marketing, he has written more than 60 books and over 4,000 articles and regularly presents seminars in the U.S. and worldwide.
To contact Dr. Levin or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit www.levingroup.com or email rlevin@levingroup.com.
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