Inflation affects everything and everyone, whether it’s groceries, gas, or your rent due at the end of the month. Life becomes stressful when things become more expensive.

If costs seem to continue creeping up higher and you’re re starting to worry about the well-being of your dental practice, let’s try to tackle this pressing issue. Here are some tips for keeping your practice profitable, even as inflation continues to rise.

#1: Raise Your Fees

Your patients might not be as upset as you’d expect about rate increases. Given that everything else around them is also increasing in price they probably expect it.

However, it’s still critical to do a little market research to understand their current situation. Find demographics reports in your market to understand the ceiling of what patients can pay.

A reasonable recommendation is to raise fees by as much as 10%, but you should stage this increase gradually. Give your patients enough time to adjust. NEXT LEVEL CONSULTANT look at annual reports on the fees insurance carriers charge. We can help practices do a market analysis and negotiate their fees by recredentialing the offices providers.

#2: Increase the Number of NEW PATIENTS

You might be able to get more creative and proactive looking into things like referral programs to incentivise your patient base. This can be challenging though, you have to ensure that your team can handle any increase in workload.

Before launching any new campaigns or referral system evaluate the practices performance. Are the systems in your practice operating efficiently? Are team members already struggling and burning out? Will you need to hire another team member if new patients start showing up?

NEXT LEVEL CONSULTANTS coaches can assist in evaluating your practices performance. We also help you setup and execute any new marketing initiatives. Having a consultant can support you in hiring and vetting the best new team member. Just ask about our practice management services we offering.

#3: Rethink Your Approach to Insurance

Many patients prefer and opt in for PPO’s (Preferred Provider Organizations). But lately, many insurance companies are reimbursing dentists less and less. If the majority of your business is PPO-based, you might want to rework your model so a smaller portion of your revenue comes from those reimbursement claims. You may lose some patients by refusing to work with their insurance provider, but you can also make up by providing top-of-the-line care to fee for service patients.

Again, having a practice management coach can be crucial in this transition away from PPO insurances. Having a full market analysis and a transition plan is crucial to making a successful move away from insurance carriers.

#4: Evaluate your overhead and spending

While raising fees and bringing in new patients are excellent ways to grow your top-line revenue, true profitability is often determined by what you can keep in your bank account.

In an inflationary environment, your overhead (supplies, lab fees, and utility costs…) can quietly eat away at your margins. It is essential to conduct a line-by-line audit of your monthly spending to identify where costs have crept up and chew away at your profit.

Start by looking at your dental supplies and lab costs. NEXT LEVEL CONSULTANTS has partnered with Torch Dental to handle supply costs super effectively. This system gives you oversight and price transparency on supply ordering. Torch can save you up to 32% on supply orders, month over month.

Many practitioners have been using the same supply vendors for years out of habit and ease. Additionally, take a hard look at your recurring subscriptions or software spending; if you aren’t utilizing an online service to its full potential, it might be time to consolidate or just cancel. Start looking at how those things are generating inccome and not just chewing at your bottom line.

Finally, don’t overlook your largest expense: payroll and facility costs. While you want to compensate your team fairly to avoid turnover, ensure that your scheduling is optimized to prevent unnecessary overtime. By tightening your internal systems and becoming a more disciplined “buyer” for your practice, you create a financial buffer that protects your business no matter how high inflation rises.

WORKING WITH NEXT LEVEL CONSULTANTS

Mike Dinsio and Paula Quinn have helped hundreds of dentists start, buy, and grow their practices over the years. The two of them have comprehensive knowledge of the dental industry inside and out and are committed to providing an exceptional level of assistance with your practice’s needs. If you have any questions about keeping your practice profitable, don’t hesitate to reach out for the help you need.