Proof of an economic recession is evident. Equally so, evidence points to the need to have a plan to recession proof your dental practice.
For our purposes it’s as much about financial strategies as it is about operational strategies. It’s primarily how you manage your dental practice workflows to achieve the best and most financially effective ROI (Return on Investment).
Is the “sky (really) falling…!?”
The answer to that question has much to do with how prepared you are for the recession that’s brewing. Sure, this time last year who would have predicted the pandemic era we’re living in?
But now that you’re in it…prioritizing your next steps is critical to keeping your dental practice afloat financially.
”A survey by Bankrate found that two out of five Americans (40%) are not prepared for the next recession. Now is the time to create a dental practice that is recession-proof.
And adding to the urgency…
Due to the recent events surrounding COVID-19, I think it is appropriate for dentists to evaluate their practices and learn how to prepare for a recession now before it is too late.”
Think about a recession as an economic pause that impacts the production of goods and services for a minimum of six months. And even though recessions occur and disappear it’s essential that you, as a dentist, have a strategy for how you’ll thrive during and after one.
Cash-flow or cash-no?
As you know, dentistry relies on production. And as the schedule goes so goes production.
Behind that formula of sorts is a cash-flow reality that requires consistent awareness. Cash flow equates to the timing related to the coming and going of money into your bank account.
No doubt, account receivables and insurance claims reimbursements make up a high percentage of your dental practice’s cash flow percentages.
Your schedule and what it reveals about production makes managing all aspects of that platform all the more vital for recession proofing your dental practice.
Streamlining and refining your workflows is an essential strategy for how to recession proof your dental practice
Think of your dental practice workflows as a cash-flow asset. It relies on improving the efficiencies of your team so that you can schedule more dentistry thereby increasing production.
Workflow + Production = cash flow = recession proofing your dental practice!!
If you were to evaluate your workflows you might discover some technology bottlenecks. Those flow-stoppages could be traceable to a variety of things.
- Antiquated or outdated dental practice management software and technology
- Tethered, desktop systems
- Low-tech, paper-intensive protocols for managing patient information, payments, accounts receivables, patient follow-up, etc.
These and more stop or delay workflows that in turn can potentially have a negative impact cash flow.
An essential piece of recession proofing your dental practice starts with an inventory of your systems and platforms that enable you to produce a higher volume of dentistry.
Maximize technology and software platforms
An outdated server-based system is often tethered in a few costly ways. For example, if your current platform relies on retaining third-party providers their agreement could incur more expense for maxmization.
Increased fees decreases cash-flow. It could be time to pivot your practice management platform to more of an all-in-one system.
Pivot 1 for recession proofing your dental practice: move to the “cloud.”
A cloud-based dental practice management software platform has advantages.
- Easy, anytime-anywhere, remote access to your patient information
- Secure, cloud-stored data for HIPAA compliant patient relationships and communication
- Real-time patient engagement for scheduling, consults, and referrals
- Connected, secure access via smart device or mobile technology
Maintain patient engagement virtually
Delays in patient communication can create delayed production, payments, and reimbursements. Those delays, of course, affect your cash flow.
Pivot 2 for recession proofing your dental practice: provide digital/virtual patient portals
Another benefit of a cloud-based dental practice management platform is its flexibility for virtual adaptations. In this COVID-19 era of dentistry patients are open to and welcome contactless digital options for accessing their dental care.
- Teledentistry allows you to provide contactless consultations. Those consultations rely on cloud access to patient health records, referral history, and other diagnostic information. This convenient solution is likely to have staying power in this new era of dentistry - increasing to your production bottom-line.
- Online scheduling gives your patients a digital option for conveniently scheduling their next dental appointment. A cloud-based software platform can seamlessly accommodate adding a link and/or chat option to your website for the scheduling communication.
- Digital patient portal provides your patients an easy option for viewing their account balance and making payments. They can do so from their smart device or personal computer. The better more convenient their access the more likely you are to see an increase in timely payments (a cash-flow enhancement).
From managing financial data to patient scheduling and communication to insurance reimbursement tracking to overall easy, anytime-anywhere access to your practice database - a cloud-based software platform alongside digital-centric workflows can help recession proof your dental practice.
Remember cloud-based technology and software platforms produce…
Improved workflows = increased production = steady cash-flow!
Planet DDS’s Denticon is the proven cloud-based Dental Practice Management Software in today’s market among solo private practices, private group practices, and top DSOs.
The Dental Dashboard streamlines IT operations and reduces hardware costs.
Contact us for more information about how Denticon can streamline your workflow systems and operational tasks that can help recession proof your dental practice.