Transform Your Top 3 KPIs

If you want to have a thriving practice, you’re going to have to track some key data metrics that will provide you with an objective representation of your practice’s performance. On its own, however, that data means very little, and so one of the biggest questions I hear from clients is “What do I do with this information?” These numbers let you know when things aren’t going to plan, and that’s when it’s time to make changes. 

When your data is off track, the secret to affecting this change is applying countermeasures. The following are some fantastic countermeasures you can implement and get your most important KPIs back on track:

1. Production

• Do a fee analysis. Take a look at your fees, especially if you haven’t done so in a long time. I recommend analyzing your master fee schedule at least once a year and comparing it to a national database or your regional average. If you’re in the 40^th or 50^th percentile but know in your heart that you provide services in the top 90^th percentile, you need to incrementally make changes and raise your fees to get closer to your true value. Furthermore, you should always bill your full fee, even if you’re 100% PPO.
• Embrace non-covered services. If you live in an area that allows you to charge your full fee on non-covered services, then you should most certainly do that. Some areas have legislation around fee capping, but others do not, so do your due diligence. Additionally, if you integrate more skills and services that fall outside of insurance parameters, you can boost your production even further.
• Maximize hygiene services. The hygiene department is a major influence in the productivity of a practice, so look at the systems and processes within the department as areas to improve. If you improve your perio protocol and diagnosis, you’re going to improve the health of your patients which is a huge win, but you’ll also increase the number of productive procedures in the practice. It’s like Kirk says: “The more you focus on being healthy periodontally, the more patients commit to restorative procedures as well.”
• Maximize schedule efficiency. I’ve coached so many practices that came to us looking for more efficiency, and being intentional with ideal day block scheduling is an effective way of finding it. You have to know what you want to be producing every day to get to where you want to go, and from there you can start to build out blocks within your schedule that provide what’s necessary to serve your patients. When you get your schedule right, you’ll be amazed at how much more you can produce in the same time, or less.

2. Write-off Percentage

• Know what you’re writing off. This is your starting point—run a report and figure out your write-off percentage if you don’t already know it.
• Reduce your PPO participation. I don’t want to tell everyone that they need to get out of PPOs, but I have seen the impact it has. To that end, consider reducing your participation, because if you’re writing off an average of 40%, that’s almost half of your work week that you’re working for free. Download our free PPO Roadmap to help you on this journey!
• Monitor your adjustment types. Look at the adjustment types you have set up with your practice management software and make sure they’re specific enough. They should be accounting for all the different ways in which you give away your dentistry and time.
• Ensure your membership plan is working for you. Examine the write-offs and adjustments that are happening in your membership plan and make sure they’re working in your favor.

3. Collections Percentage

• Establish a financial policy. I like to have a policy that’s outward-facing to your patients, and then an inward-facing one that’s a more robust and detailed version. Include expectations around  timing of payments, how you’re going to help manage those payments, and the types of payment you accept. Make sure you have an actual conversation with your patients in their first appointment instead of putting it in the middle of the new patient forms. 
• Build an A/R system. I have several teams that are over 100% in their collections because they’ve implemented strategies around their A/R system and now know exactly what, when, and how to do it. Whoever is collecting money has to be confident, kind and direct. You have to be a little sweet and spicy, as Ariel—another awesome coach—and I like to say.
• Have a morning huddle. If you’re not doing a morning huddle, you absolutely need to. This is your opportunity to get everyone on the same page and connect the dots, and it’s amazing how much better it makes your schedule and finances. 
• Improve your P.I.T. Stop. This stands for Procedure, Investment, Time, and is the handoff between the clinical and the administrative team members when the appointment is finished. It’s so critical that this is more than a “Bye, see you next time.” The P.I.T. Stop is one of the most important systems you’ll create, because it helps you pass information to the patient and build value for the care they’ve received. If you don’t stop and make that connection with the administrative team, you’re potentially losing out on some of your collections. 

Ultimately, implementing these strategies and transforming your numbers starts with awareness. Making decisions based on feelings isn’t going to help you make progress—you have to consistently track and share data among your team. It’s also important to recognize that you can’t do everything at once, so look at what data will have the greatest impact and start there. Set your annual goals, use each quarter to prioritize the aspect of the business that needs countermeasures, then apply them! Slowly but surely, you’re going to make progress. For more information about the important KPIs you should be tracking, check out Episode 664 of the Best Practices Show!

Implementing any change in your practice can be a daunting task, but you aren’t alone in this journey. Contact Gina to learn more about ACT Dental and how we can help you, download our free Roadmap to Practice Profitability, or even come see us in person by registering for our upcoming To The Top Study Club meeting, From Data to Dollars: Navigating the Numbers Game on April 19^th and April 26^th. You deserve a Better Practice and a Better Life, and with our help, it’s within your grasp!

Tune in next time to learn even more about the importance of numbers from Christina Byrne, as she shares 3 strategies to help bring more accountability to your data!

Miranda Beeson is a Lead Practice Coach at ACT Dental