Written by: Roger P. Levin, DDS
I think it can be easily argued that dentistry is a “leading indicator” for the overall economy. Leading indicators are specific data points that signal trends before they happen. For example, the best indicator in dentistry that an economic slowdown is impending would be seen in orthodontics. Over the last forty years, orthodontics has slowed down in the lead-up to every recession.
There are several areas that all dentists and specialists can examine to predict economic changes before they become widely known. These include:
Number of New Patients
If the number of new patients is declining in your practice, it could be due to several different reasons, but one possibility is that the larger economy is slowing down. Much dental treatment is considered discretionary, and when patients begin paying more for groceries and household items, they will often put off dental appointments or forgo oral healthcare completely.
Case Acceptance
Case acceptance is another area that is often impacted by the economy and serves as a leading indicator. Most dentists can sense a shift in case acceptance rates, especially for everyday cases or when patients begin delaying or declining recommendations for treatments like restorations and crowns. This is why it is so important to track all numbers in your practice to understand what is happening month by month. Never worry about a single month, but keep a close eye on three-month trends.
No-Shows
The no-show rate is a clear economic indicator. If no-shows suddenly rise, it is not because you have a less responsible group of patients—it is because patients are intentionally deciding not to spend money at the dental practice right now. This is one area where your systems need to be exceptional to maximize patient visits, keep patients coming in, and ensure they are aware of the excellent financial options available to them when needed.
Dentists are in a unique position to identify changes in economic sentiment early on. Keep a close eye on your practice statistics, and when you see changes occurring, take the necessary steps to adjust your practice and personal financial philosophies and behaviors. You’ll be in a better economic position if you do.
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 around the world.
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.
