Dentistry is currently facing some headwinds. When adjusted for inflation, dental insurance reimbursement amounts have been declining for many years. And on the subject of inflation, the upward pressure of salaries that began in the COVID era is now combining with tariff-driven increases in costs for dental supplies and equipment. With the cost of borrowing considerably higher than it was a few years ago, and the crushing student debt that follows dental school graduates around for many years, it is a decidedly unfriendly time to start, buy, or own a practice.
Yet despite these unfavorable conditions, there are some dentists who thrive and prosper. What differentiates this elite group from the rest of the pack?
1. They are clinically adept and esthetically aware. This group have invested many hours in broadening and perfecting their clinicals. This has allowed them to evolve from treating patient needs to addressing wants . One of the most powerful questions in dentistry is "is there anything about your smile that you would change if you could?"
2. They have moved beyond dental insurance. Our CEO once described dental insurance as the opiate to which many practices have become addicted. If dentists and teams allow their horizons to be limited to what dental plans cover, financial success is dependent on the treadmill of running as many patients through a practice in the shortest possible time. One terminology change that has helped many practices is to refer to a dental "benefit" as opposed to "insurance." This helps both the team and patients differentiate dental plans from the insurance that covers their houses and vehicles, and works quite differently.
3. They are systems people. Thoroughbreds look for opportunities to solve a problem once, whereas plodders solve the same problems repeatedly. As an example, many practices do not have basic business processes like day-end routines properly documented. This means that if an employee leaves on short notice or is let go, a lot of vital knowledge walks out the door with them.
4. They are financially involved. The dentists who want to be pure clinicians and leave the finances to others tend not to fare well as practice owners. Financial oversight takes two things; time and knowledge. For those dentists who are prepared to commit an hour or two per month but don't know what needs to be done, our excellent program called Owner Proactive Strategies is designed to equip them to efficiently oversee their practice's finances.
Prosperity often covers inefficiency, and there was a time not that long ago when even less-than-adept dentists could do reasonably well. It appears that this era has passed. This is a time for dentists to take stock of their situation and skills and consider how they may move towards the activities that make the top 10% of dentists so successful.
Want to start your journey of practice improvement? Click the button below.