Woburn, MA (PRWEB) October 15, 2013
Schwartz & Schwartz PC, a Woburn MA CPA firm that specializes in healthcare professionals and their practices, recently issued their "Million Dollar Metrics" for general dentists.
"Figuring out which metrics are meaningful for a dental practice owner to look at is one challenge," explains Andrew Schwartz CPA, managing partner of Schwarz & Schwartz PC. "The problem is that calculating those metrics and then looking at those performance indicators in a vacuum doesn't provide dentists with much insight at all. For that reason, calculating various performance metrics will be much more valuable to practice owners if they can compare their practice's metrics to a peer group."
Schwartz & Schwartz PC currently provides tax, accounting, payroll, and basic practice management services to more than 140 dental practices in the New England area. This past winter, they collected practice management data from many of their practice clients and used that data to calculate the following ten meaningful performance metrics for general dentists for 2012:
1. Number of Active Patients (Defined as an individuals treated at least once during the prior twelve months)
2. Collections per Active Patient
3. Collections per Doctor Hour
4. Collections per Procedure
5. Number of Procedures per Active Patient
6. Number of Non-Diagnostic and Non-Preventive Procedures per Active Patient
7. Re-Care Efficiency (Defined as the percentage of Active Patients who came in for two exams during the year)
8. Number of New Patients brought in during the last year
9. Percent of New Patients to Active Patients
10. Percent of Adjustments and Write-Offs to Gross Production
(Please note that even though the data was collected mostly from practices in the Greater Boston area, Schwartz feels that most of these metrics are relevant to practices located within all 50 states.)
"To make these metrics even more meaningful, we calculated each performance metric based on the data collected from all the participating practices, and then re-calculated them based on the practices that collected $1 million dollars or more during 2012. It's very interesting to see how the performance metrics for the total sample compare with the same metrics calculated from just the million dollar practices. And we're pleased that we're able to share that data with you now," says Schwartz.
A part of our analysis, Schwartz also created a graph that he calls the "Internal Marketing Matrix". This graph plots Re-Care Efficiency on the x-axis versus New Patient Percentage on the y-axis for each of the participating practices. Depending on each practice's metrics and where they fall on this graph, the practice owner will be considered to be either a politician, engineer, neophyte, or "dentist-preneur".
To learn more about these ten metrics and the four quadrants of the Internal Marketing Matrix, and to find out how your general dental practice compares against the average practice and the "million dollar" practice, please watch this 13-minute recorded PowerPoint Presentation on Million Dollar Metrics for General Dentists available at: http://youtu.be/-MwJU6mQm1w.