Profitability and Overhead Control

Sunday, August 15, 2010

Another Word about Profitability and Overhead Control
Want to make sure your net is good?
Overhead Control really consists of: Confrontation: Often, reducing overhead comes down to confrontation such as:
Bargaining with your lab guys.
Holding your staff accountable for results (given the correct direction and training— that’s our job to help).
Terminating staff members who are not performing well.
Making sure you are price shopping and bargaining when making any significant investments in technology, facility, anything.
Enforcing work place rules (time clock, reasonable vacation time and coordination).
Result Control: Making sure that for whatever technology, equipment, facility or advertising you invest in you get a good “bang for your buck.” Please see the “Result Control “articles I’ve written regarding this on my website (under Articles)
Keeping an eye on the numbers. You can’t manage what you don’t measure and many dental offices have Profit and Loss reports that don’t clearly show the bottom line and don’t organize the expenses into rational groups that make it easy to compare to industry standards.
Wise selection (or de-selection) of PPO participation to limit discounts.
Increasing practice productivity through seeing more patients or doing more for the patients you see.
Posted by Bill Rossi at 3:57 PM
Labels: Advanced Practice Management, dental office overhead, dental office profitability