A dentist’s guide to managing key performance indicators (KPIs) for greater productivity and efficiency
by: Tammy McHood, Dentrix
Dentists are working harder today than in 2008, according to recent surveys. Plus, practice revenues are down, overhead is up, and dentists are retiring later.
Your practice is probably feeling the effects of these market pressures. During the last decade, a more competitive dental economy has emerged, shaped in part by these factors:
- Growing number of dental school graduates
- Longer dental careers
- Changes in insurance plans
The best way to be successful in this new dental economy is to maximize the productivity and efficiency in your practice. How? By understanding and managing the key performance indicators (KPIs) in your practice on a regular basis.
Just like your blood pressure, body weight and cholesterol numbers indicate your physical health, your KPI numbers indicate the financial health of your practice.
Monitoring your KPIs and taking action to improve them can help you eliminate waste, optimize production, improve efficiency and drive higher profitability. Mastering the metrics that matter gives your practice a competitive edge.
Which KPIs matter most to practice profitability?
Henry Schein has researched this question extensively. After measuring dental practice success for more than 20 years, we recommend dentists focus on these five KPIs:
- Active patients
- Active patients in hygiene
- Accounts receivable management
- Schedule optimization