• Seona

KPIs for your Dental Practice

Updated: Jul 26, 2021


Key Performance Indicators (KPI's) identify, track and analyze various metrics to give you the overall health of your practice. Profit and Loss statements are great (and need to be analyzed) but they don't give you the full picture of what's happening in your practice. KPIs enable you to make strategic business decisions to optimize practice growth.


KPIs enable you to make informed decisions such as:

Is my practice ready for a new associate?

Is the hygiene department ready to expand?

Are patients accepting my treatment plans?

Are our new patient leads converting into loyal patients?


KPIs, are based on real data and provide a true picture of practice performance. A practice that fails to measure and track its KPIs is effectively flying blind when making business decisions as it doesn't have the figures to find early warning signs or indications of declining practice performance.


Every dental practice should have its own individual KPIs that align with its business strategy. However, there are some KPIs that every practice should be tracking:


PRODUCTION KPIs


Production per clinician: (This includes the OHT department.)

Total monthly production is broken down into individual clinicians.

Every clinician will have their own (achievable) target to reach based on the individual. These figures enable us to see individual growth as a clinician or if further training/mentoring may be required.


Production per Day:

Production Per Day = Monthly clinician production / Number of days clinician was available that month.

A practice should strive for at least an average daily production of $3,500 per Doctor and $1,000 per hygienist.

The optimal hygiene department should be 35% of the gross practice production.


Production per Hour:

Production Per Hour = Monthly clinician production / Number of hours available to treat patients per month.

This figure is great to compare against what your expense per hour is to have the clinic open. For example; if it costs your practice $300 per hour to stay open (all overheads) and the clinician is making $275 per hour then something needs to be addressed urgently.


PATIENTS:

New Patients Per Month:

Most Practice Management software will be able to give you these figures. Make sure that for every new patient you are recording "how they found" the practice, as this helps identify which marketing efforts are the most effective.

A well-marketed practice should expect to see 20-25 New patients per month, per clinician.


Total Active Patients:

Active patients are classed as patients you have seen in the last 18 months. It is widely regarded that 1,500 active patients per clinician is a healthy number.

If you are looking at adding an associate this KPI is extremely important. If you're feeling overworked and have 2000 active patients, you won't have enough to sustain two full-time clinicians. A solution could be a part-time associate, a new grad willing to build their books, or even an OHT, so you can focus on higher production treatments.

Recall Figures:

This is the percentage of returning patients that are due for their scheduled recalls.

The best practice is to aim for at least 80%. If your KPI figures are not reflecting this number you'll need to start looking at other recall systems that you could implement and monitor to find out which one works best for your patient demographic.



In my next blog, I'll be looking at setting and monitoring KPIs in your practice. Be sure to like and follow our Facebook page to keep up to date!


Does your practice need a Health Check? schedule your call today and find out how Virtual Dental Management can help you set, measure, and analyze your practice KPIs to ensure optimal practice growth!

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