HOW are you moving the needle?
Is your dental business becoming significantly more valuable? Is your growth scalable?
Are you a private equity firm invested in, or thinking about, the dental industry? Are you a DSO, or do you own a private dental practice? Are you a fee-for-service dentist?
No matter who you are, the question remains the same, HOW are you going to increase the value of your business(s)? Are you going to rely on arbitrage alone?
Cost cutting will only get you so far before revenue will fall due to employee dissatisfaction, brand erosion, or both. Fee-for-service? Congratulations...but, you cannot scale your business. And so, the question remains, HOW are you going to significantly raise top-line revenue?
You could try a series of stopgaps or one-offs that make sense on paper but will fail in practice: adding the number of services, expanding hours, bolting on specialties, tapping into medical billing, or using technologies that may better leverage your existing patient base.
In my experience, these “business strategies” will not significantly move the needle. This is not to say that they should not be tried, just be prepared for nominal top-line boost.
Moreover, the effort is going to cost you - in hours, training, staffing, and management. As you become more “salesy,” you risk your brand’s reputation.
The general dentists you employ, who are just average at crown preps and creating value on the basics, are now expected to be sleep experts, endodontists, and oral surgeons. Do you expect your staff to be proficient and knowledgeable about not 5 or 10, but 15 or 20 procedures? These added procedures and hours create havoc with the employees in your offices, creating a culture where turnover will not be far off.
The inability to properly diagnose, schedule, and create value for your existing general dental patients will undoubtedly force you to subsidize with an infinite amount of money and effort to acquire new patients. Your doctors and staff will become addicted to new patients as a result, as there will never be enough. Because the marketing will be blamed, more money will be allocated, fulfilling the addiction cycle.
There is a huge cost to the band-aids that many executives, vice presidents of such-and-such, and even good consultants recommend. Why are these band-aids recommended? They are the low hanging fruit. Anyone inside or outside the industry can source, implement, and manage them. But, NO, they will not move the needle
If you aspire to run a relationship-based general dental practices better, and move the needle on value, get better at delivering your core services. Increase your throughput rate of relationship-driven patients who need your core services for optimal dental health with relationship-oriented staff. This is how you improve your brand, build a great culture, and move the valuation needle.
An average dental business collects $250,000 per operatory. Good ones collect $300,000. Great ones collect $500,000+ and are scalable. How much more will your business be worth if you simply got even better at what you already do well?
Let MACC Academy help you move the needle with systems that make sense to your business’s vision and bottom line. We slow things down, and target relationship driven collections at $500,000+ per operatory to make your offices much more valuable.
Contact maccacademy.com today for a FREE consultation on how to implement real scalable change. MACC ACADEMY is a risk-free consulting firm whose fees are based solely on value gain.
Stop making excuses for your general dentists when implants fail, for root-canals you would not want in your own mouth, and for high employee turnover. We can help you move the needle.
More News