Set Your Practice On Fire!

Transcription

1 Set Your Practice On Fire! Increasing Production Through Proven Business Systems Roger P. Levin, DDS Chairman and CEO Increasing practice production through proven business systems. Levin Group, Inc. Brief Overview Owings Mills, MD Phoenix, AZ Marseille, France Levin Group, Inc. Brief Overview Levin Group Consultants at our corporate headquarters in Owings Mills, MD September 18 - Set Your Practice On Fire 1

2 Levin Group, Inc. Brief Overview Levin Group, Inc. Brief Overview 2014 Dental Excellence Award Best Practice Management Consultant As voted by readers of drbicuspid.com The Current State of the Dental Practice The 10 Permanent Game Changers In Dentistry 1. The U.S. economy 2. Changing patient behavior 3. Lower demand for dental services 4. Increase in emergency-only patients 5. New dental schools September 18 - Set Your Practice On Fire 2

3 The Current State of the Dental Practice The 10 Permanent Game Changers In Dentistry 6. Decrease in insurance reimbursements 7. Expansion of DSO s 8. Increasing student loan debt 9. Fewer available associateships 10. Dentists practicing 8-10 years longer The Current State of the Dental Practice Practice Potential Almost every practice has a 30-50% growth potential in production, over 3 years, without an increase in fixed expenses. Source: Levin Group Data Center The Current State of the Dental Practice We have entered a new era of dentistry. This is a time when increased competition is the norm when patients no longer feel loyal to a practice and when practice growth is no longer guaranteed. - Tarryn Reddy Senior Practice Analyst September 18 - Set Your Practice On Fire 3

4 The New Rules of The Dental Practice Increasing practice production through proven business systems. The New Rules of the Dental Practice 1. Practices have to do more with what they already have. A. Fewer new patients B. 81% of general dental appointments are single-tooth treatment C. Insurance reimbursements are decreasing The New Rules of the Dental Practice 2. Patients are demanding more value for their money. A. The American consumer is spending less and saving more B. Value shopping is growing C. Patients are more sensitive about their co-payments September 18 - Set Your Practice On Fire 4

5 The New Rules of the Dental Practice 3. Practices must take control of the patient experience. A. Patients are currently in control B. A lack of control decreases efficiency C. A lack of control decreases practice production and profit 4 Steps To Increasing Production and Profit Increasing practice production through proven business systems. 4 Steps To Increasing Production and Profit 1. Targets 2. Systems 3. Scripting 4. Marketing September 18 - Set Your Practice On Fire 5

6 4 Steps To Increasing Production and Profit Targets All excellent businesses always have targets. Taught in every business school. Practices must use proven business models to achieve and maintain success. Without targets a practice will plateau or decline due to the current and future environment of competition. 4 Steps To Increasing Production and Profit Targets Practice Goals The Successful Practice 1. Continually increasing production 2. Continually increasing profit and income 3. Continually increasing referrals 4. Low stress environment 5. Fun and enjoyable office 6. Financial independence September 18 - Set Your Practice On Fire 6

7 General Practice Success Assessment Increasing practice production through proven business systems. 10 Question Assessment 1. Will the practice grow by 18% or more this year? (Industry Standard) Question Assessment 2. Does the practice use a production per chair scheduling method? 21 September 18 - Set Your Practice On Fire 7

8 10 Question Assessment 3. Does the practice produce at least $1M in revenue per doctor in 4 days a week? Question Assessment 4. Does the doctor spend 98% of office time in direct patient care? Question Assessment 5. Are there documented systems manuals for each practice system? 24 September 18 - Set Your Practice On Fire 8

9 10 Question Assessment 6. Is practice overhead 59% or below? Question Assessment 7. Does the doctor monitor practice performance through Key Production Indicators (KPIs)? 26 Key Production Indicators 1. Production 2. Collections 3. Profit 4. Overhead 5. New Patients 6. A/R 7. Case Acceptance 8. Doctor Production/ Hygiene Production 9. Average Production/ Patient 10.Average Production/ New Patient 11.Elective Service % of Production 12.Fee-for-Service to Insurance Production Ratio 27 September 18 - Set Your Practice On Fire 9

10 10 Question Assessment 8. Are collections 99% of all production with scripts for each financial option? Question Assessment 9. Has the practice established a written Vision Statement and 10 Goals that are reviewed monthly? Question Assessment 10. Are there written scripts for all routine conversations that properly influence patients? 30 September 18 - Set Your Practice On Fire 10

11 YES Score: 31 9 Essential Areas Of Expertise Increasing practice production through proven business systems. 9 Essential Areas Of Expertise System-By-System Analysis 1. The first step in analyzing your practice 2. Evaluates the current state of your practice 3. Identifies production bottlenecks September 18 - Set Your Practice On Fire 11

12 9 Essential Areas Of Expertise The 9 Areas 1. Production 2. Collections 3. Team Building 4. Scripting 5. Case Acceptance 6. New Patient Experience 7. Hygiene 8. Scheduling 9. Marketing Practice Analysis The Starting Point of All Change Increasing practice production through proven business systems. Practice Analysis The Starting Point of All Change The Key Takeaway One of the biggest mistakes dentists make is making changes to the practice before analyzing the current practice situation. September 18 - Set Your Practice On Fire 12

13 Production Practice Analysis The Starting Point of All Change The Top 5 Concerns of Dentists Practice Production Below Goals Decreased Doctor Compensation Fewer New Patients Reduced Case Acceptance Increased No-Shows and Last-Minute Cancellations Source: Levin Group Data Center Quarterly Survey Practice Analysis The Starting Point of All Change The Inflection Point Curve Critical Point To Implement New Systems Practice Reaches New Heights Inflection Point Years Practice Declines Practice Analysis The Starting Point of All Change Inflection Point Identification An inflection point can be defined by 4% growth per year or less. Annual production begins to plateau. Proven, repeatable systems are the only solution September 18 - Set Your Practice On Fire 13

14 Production Practice Analysis The Starting Point of All Change Practice Management Success Previous Era Small adjustments The New Era Comprehensive Systems Pearls no longer work. Comprehensive systems grow practices. GP Management Consulting Program Curriculum & Training Materials 41 Practice Analysis The Starting Point of All Change Three Career Production Plateaus at 5 years at 9 10 years at years Plateau #3 Plateau #2 Plateau #1 Critical Point: Early Decline Years = Risk Event = Inflection Point September 18 - Set Your Practice On Fire 14

15 Production Practice Analysis The Starting Point of All Change Practice Career Cycle The Law Of Business - 75% E Plateau M Growth Decline L Start Years Practice Analysis The Starting Point of All Change Analysis Will Identify 1. Your inflection points 1 2. Risks and potential for decline 2 3. What to do to increase production at every stage of the Practice Career Cycle 3 Source: 1 Forbes; Oct Harvard Business Review 3 Levin Group Data Center Practice Analysis The Starting Point of All Change 3 Results of Comprehensive Systems 1. Production increases of 30 50% 2. Revenue increases of $8 - $10M over 20 years 3. Reach financial independence 9 11 years earlier Do you really have to work until you are 70? September 18 - Set Your Practice On Fire 15

16 Practice Analysis The Starting Point of All Change VISION Production 2015: Production 2016: Production 2017: Practice Analysis The Starting Point of All Change What Will Prevent You From Achieving These Production Goals? Case Study of a Levin Group Client Increasing practice production through proven business systems. September 18 - Set Your Practice On Fire 16

17 Practice Profile 1. Dr. Frank Edwards in practice 7 years 2. Annual production of $825, Five staff members 4. Four treatment rooms 5. Four-day-per-week schedule Practice Analysis 1. No systems documentation or scripting in place 2. Scheduling at 65% of production capacity st percentile on 20 Levin Group Targets 4. Decline in: Average production per patient Average production per new patient Practice Analysis 5. New patient decline of 12% over previous year 6. One insurance plan, representing 17% of patients, reduced reimbursements by 18% 7. No-shows increased 2% 8. Practice Performance Matrix Yes score was 9 out of 27 (33%) September 18 - Set Your Practice On Fire 17

18 Practice Analysis 9. Overhead was 8% over target 10.Case acceptance rates were declining 11.Only 90% of new patient callers scheduled appointments 12.No internal marketing program to increase new patients 13.No clear financial option protocol and scripting Practice Analysis 14.Production had declined by 9% 15.Analysis projected deeper decline of 14% within 6 months Consulting Implementation 1. Three-year vision statement was created 2. All major systems replaced over 12 months Targets established with benchmarks and deadlines 4. New Power Cell Schedule was mathematically designed and implemented September 18 - Set Your Practice On Fire 18

19 Consulting Implementation 5. Team trained in scripting 6. Team trained in sales methods to promote all services to patients with consistency 7. Ten-minute Daily Business Meeting established with 15-point agendas 8. Monthly 2-hour Business Review meeting established with leadership and training Consulting Implementation 9. Patient satisfaction survey 10.Fifteen internal marketing strategies 11.New patient phone call redesigned to schedule 98% of patients 12.Financial Coordinator trained in financial options, negotiation and scripting Consulting Implementation 13.Dr. Edwards and staff trained in professional selling skills to increase case acceptance 14.Three-step system implemented to reduce no-shows 15.Staff reported 67% increase in confidence September 18 - Set Your Practice On Fire 19

20 Results Start Year 1 Year 2 Production $825,000 Production $990,000 Increase 20% Production $1,232,000 Increase 24% Total 2-year growth: 49.3% Doctor Quote We achieved the goal of increasing production and, just as importantly, our quality of life has gotten significantly better. Our practice is running like a Swiss watch. - Dr. Edwards Goal Setting Increasing practice production through proven business systems. September 18 - Set Your Practice On Fire 20

21 Goal Setting The 4 Keys To Goal Setting 1.Written 2.Deadline 3.Measurable 4.Expert Goal Setting Highly successful CEO s surround themselves with experts. They view expert support as a growth method. Goal Setting Experts 1. Achieve your goals 5-10 times faster. 2. Achieve your targets 5-10 times faster. 3. Provide immediate expertise with no learning curve. 4. Overcome obstacles. 5. Eliminate stress. Make it someone else s problem September 18 - Set Your Practice On Fire 21

22 Goal Setting Mini-Workshop Create 10 goals to be achieved in the next 12 months Goal Setting Goal Deadline Measurement Expert Conduct analysis 30 Days Understand practice current state Levin Group Case Study of a Levin Group Client Increasing practice production through proven business systems. September 18 - Set Your Practice On Fire 22

23 Practice Profile 1. Dr. Arthur Singer in practice 27 years 2. Annual production of $920, Seven staff members 4. Five treatment rooms 5. Four-day-per-week schedule Doctor s Goals 1. Implement systems to make practice more efficient 2. Increase production to afford an associate 3. Have associate buy 50% of the practice over 5 years Practice Analysis 1. Insufficient production to hire an associate 2. Practice systems were breaking down 3. Chaotic, stressful schedule 4. Several patients per month posted negative reviews, solely based on poor customer service 5. Financial options for patient payment were limited and not clearly defined September 18 - Set Your Practice On Fire 23

24 Practice Analysis 6. No-show rate was 4.2% 7. Hygiene no-show rate was 9% 8. No scripting in place 9. Collections were 95.3% 10.Overhead was 65.2% Practice Analysis 11.Production had declined by 12% 12.Analysis projected deeper decline of 18% within 6 months Consulting Implementation 1. Ten goals, with deadlines, measurements and experts, were identified for next 12 months 2. Scheduling time studies were completed 3. New Power Cell Schedule was mathematically designed and implemented 4. Team trained in scripting September 18 - Set Your Practice On Fire 24

25 Consulting Implementation 5. Step-by-step systems were implemented in all areas of the practice 6. No-show retraining program was implemented 7. Timeline was established to hire an associate Results Start Production $920,000 Increase N/A Year 1 Production $1,113,200 Increase 21% Year 2* Production $1,319,142 Increase 18.5% Year 3 Production $1,675,310 Increase 27% Year 4 Production $2,177,903 Increase 30% *An associate joined in July of Year 2. Doctor Quote The practice is now running on all cylinders. Everything is in place for a smooth transition. In less than 4 years, productivity has more than doubled, which will allow me to retire earlier and deliver to the next owner a highly valuable practice. - Dr. Singer September 18 - Set Your Practice On Fire 25

26 Principles of Scheduling Increasing practice production through proven business systems. Principles of Scheduling Overview 1. The goal is to maximize efficiency to achieve the production target 2. Scheduling is time management 3. Time is quantitative/measurable 4. Ideal schedules must be mathematically constructed using proven formulas Principles of Scheduling Power Cells 1. Power Cells = Production Cells 2. Power Cells = Predictability 3. Power Cells = System Implementation 4. Power Cells = Lower Stress September 18 - Set Your Practice On Fire 26

27 Principles of Scheduling Power Cell Scheduling % of day in Power Cells 2. Mathematically analyze production factors 3. Daily: AM Major production 65% Early PM Minor production Mid PM New patients and consults Late PM Minor procedure time Principles of Scheduling Power Cell Scheduling 4. Schedule production per chair 5. Schedule new patients within 7-10 days 6. Schedule new patients 20 minutes early 7. Schedule large cases within 7-10 days 8. Conduct procedural time studies 9. Systems for managing emergency and late patients Principles of Scheduling 10 minutes per hour 80 minutes per day 320 minutes per week 15,360 minutes per year (48 weeks) 256 HOURS per year 32 Doctor-DAYS per year 2 Doctor-MONTHS per year What is the value of 10 minutes per hour? September 18 - Set Your Practice On Fire 27

28 Case Study of a Levin Group Client Increasing practice production through proven business systems. Practice Profile 1. Dr. Carl Peters in practice 19 years 2. Annual production of $847, Married with three children moving toward college age 4. Four treatment rooms 5. Four-day-per-week schedule Doctor s Goals 1. Return practice production to positive growth 2. Position practice to better compete 3. Save for kid s college and his retirement September 18 - Set Your Practice On Fire 28

29 Practice Analysis 1. Two large national chains opened offices within one mile of Dr. Peters 2. New patients declined in last two years by 23% 3. Doctor reported high stress level 4. There were no documented systems 5. Long-term staff focused on maintaining the status quo Practice Analysis 6. Doctor had enrolled in two new insurance plans without acquiring many new patients 7. Practice was below the 70 th percentile in many key Levin Group targets 8. Open time in the schedule 9. No-shows at 4.3% 10.Case acceptance below 50% for cases >$1,500 Practice Analysis 11.Production had declined by 11.6% in last two years 12.Analysis projected deeper decline of 15% within 6 months September 18 - Set Your Practice On Fire 29

30 Consulting Implementation 1. Clear vision statement established 2. Set 12 measurable goals to achieve in 12 months targets were established 4. New Power Cell Schedule was mathematically designed and implemented Consulting Implementation 5. All new systems were documented with checklists for detailed staff training 6. Overdue patients went from 4.9% to < 2% within 90 days 7. No-shows decreased to < 1% within 90 days Consulting Implementation 8. Staff became energized about new systems and clarity around their jobs 9. Daily Business Meetings and Monthly Business Reviews were implemented 10.Scripting was developed for all routine conversations September 18 - Set Your Practice On Fire 30

31 Consulting Implementation 11.A scientific internal marketing program was implemented increasing patient referrals within 60 days 12.Program to remind patients to post reviews resulted in 12 positive reviews in first 30 days Results Start Year 1 Year 2 Production $847,000 Production $999,460 Increase 18% Production $1,69,370 Increase 17% Total 2-year growth: 38.6% Doctor Quote When the competition opened just down the street I had no idea what we were going to do in order to survive. Now that we have excellent systems in all areas of the practice, my patients love coming here and tell me they would never leave. They know that everything we do here is focused on providing the best clinical care in the most patient-friendly environment September 18 - Set Your Practice On Fire 31

32 Principles of Scientific Practice Marketing Increasing practice production through proven business systems. Principles of Scientific Practice Marketing Effective Marketing Requires Systems and Implementation SYSTEMS Budget Marketing Plan Staff Training Scripting IMPLEMENTATION Measurement Accountability Problem Solving Refinement PRODUCES PREDICTABILITY AND ORDER MORE NEW PATIENTS Principles of Scientific Practice Marketing 8-Step Competitive Marketing Plan IMPLEMENT & SUSTAIN STEP 8 MEASURE, LEARN & ADJUST STEP 7 ASSIGN ACCOUNTABILITY (EVERY GOAL) CONVERT TO PLAN STEP 6 SET GOALS FOR EVERY ACTIVITY STEP 5 MATCH APPROPRIATE ACTIVITIES TO YOUR SWOT STEP 4 IDENTIFY ALL AVAILABLE MARKETING VEHICLES ANALYSIS & VISION CREATION STEP 3 DEVELOP A CLEAR VISION AND BUDGET (COMMIT TO BOTH) STEP 2 ANALYZE YOUR SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS) STEP 1 KNOW YOUR BRAND September 18 - Set Your Practice On Fire 32

33 Principles of Scientific Practice Marketing Components of a Dental Practice Marketing Plan 1. INTERNAL 2. CUSTOMER SERVICE 3. SOCIAL MEDIA Principles of Scientific Practice Marketing Internal Marketing Three Key Concepts 1. Patients Referring Patients 2. Least Expensive Form of Marketing Available 3. Two Levels of Impact Existing & New Patients Principles of Scientific Practice Marketing YES NO Internal Marketing Assessment 1. Does the internal marketing program have at least 15 custom selected strategies for patients, functioning together at all times? 2. Have patient referrals increased by more than 18% in each of the last three years? 3. Does the practice produce at least $1.0 million or more per doctor annually in four days per week? 4. Are 40-60% of patients referring at least one other patient each year? 5. Does the practice have a seven-step gratitude process for referrals? September 18 - Set Your Practice On Fire 33

34 Principles of Scientific Practice Marketing YES NO Internal Marketing Assessment 6. Has the staff been trained in interpersonal relations? 7. Do you track ongoing referrals from patients? 8. Does the practice quantitatively measure patient satisfaction? 9. Does the practice regularly change internal marketing strategies? 10. Has the staff received in-depth training, including written scripts, on asking patients for referrals? Principles of Scientific Practice Marketing Internal Marketing Assessment YES Score: out of 10 Principles of Scientific Practice Marketing Customer Service Three Key Concepts 1. Impacts Management & Marketing Systems 2. Involves Every Member of The Practice Team 3. Patients Expect Excellence Bar Is High September 18 - Set Your Practice On Fire 34

35 Principles of Scientific Practice Marketing Customer Service 1. WOW every patient 2. Exceed patient expectations every time 3. Respect people s time 4. High-energy office 5. Positive attitude culture Principles of Scientific Practice Marketing Customer Service 6. Engage patients in personal conversation 7. Focus completely on the patient 8. Show true appreciation to every patient 9. Guide patients through the insurance maze 10.Do whatever it takes! Principles of Scientific Practice Marketing Social Media Three Key Concepts 1. New Concept For Many Dentists & Staff 2. Baseline Activity is REQUIRED Today 3. Potential Impact on Practice Success is High September 18 - Set Your Practice On Fire 35

36 Principles of Scientific Practice Marketing Social Media 1. Social media is different from other marketing. 2. You need to be social and engage your audience. 3. There are 1.32 billion active monthly Facebook users and 829 million active daily. The market is there. Principles of Scientific Practice Marketing Social Media 4. At a minimum, all practices must control their online profiles with the search engines and the review sites. Google+Local Yahoo Bing Facebook Yelp Angie s List Etc. 5. At a minimum, all practices must have a strategy for managing online reputation (reviews). Principles of Scientific Practice Marketing How To Obtain Reviews The Right Way When To Ask: After a patient completes treatment If the patient makes a positive comment If the patient makes a referral During a positive emotional experience (i.e. getting braces removed) If you have good rapport with the patient September 18 - Set Your Practice On Fire 36

37 Principles of Scientific Practice Marketing How To Obtain Reviews The Right Way Involve Your Staff: Do not force reviews upon patients, but effectively train staff on inquiring about reviews if the opportune moment arises Your staff is the face of your practice so encourage them to take advantage of these interactions Principles of Scientific Practice Marketing Signage: How To Obtain Reviews The Right Way Include signage in the office that lets patients know you have a presence on review websites Like Us On Facebook and Review Us On Google and People Love Us On YELP!, along with the icon of the site will grab patients attention and collect positive reviews Principles of Scientific Practice Marketing How To Obtain Reviews The Right Way Signatures, Links on Practice Website: Include information about reviews in the signature of the doctor and front desk staff Enjoyed your visit? Leave us a review! Do you love our practice? Tell us on YELP! Include social media icons and links on your practice website that take visitors directly to the review site that you are promoting September 18 - Set Your Practice On Fire 37

38 Principles of Scientific Practice Marketing How To Obtain Reviews The Right Way Care Handouts: Create a small flyer or card as an extra reminder to patients to leave a review Make the process simple for the patient Principles of Scientific Practice Marketing THE WRONG WAY!!! Avoid the following techniques for obtaining reviews: Do not offer prizes, money or any sort of incentive for leaving a review. Review sites can recognize incentives and punish you for doing so. Faux reviews and suspicious activity Many review sites notice if a practice receives an unnatural amount of reviews at one time. Same IP address (i.e. same computer) Avoid having patients submit reviews in the office. Principles of Scientific Practice Marketing Marketing in a Competitive Environment 1. Understand Your Market 2. Create an Effective Plan 3. Implement & Measure September 18 - Set Your Practice On Fire 38

39 Maximizing Practice Potential Increasing practice production through proven business systems. Maximizing Practice Potential What the mind of man can conceive and believe, it can achieve. - Napoleon Hill, 1937 Think And Grow Rich Maximizing Practice Potential The 7 Traits To Reach Your Potential 1. High Energy 2. Inspire Others 3. Learn Every Day 4. Make Decisions Quickly 5. Sense Of Urgency 6. Act Now Live In The Moment 7. Are Aware Of What You Know And What You Don t Know September 18 - Set Your Practice On Fire 39

40 Maximizing Practice Potential Some people want it to happen, some wish it would happen, others make it happen. - Michael Jordan Professional athlete and entrepreneur Copyright 2015 Levin Group, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the publisher. September 18 - Set Your Practice On Fire 40

41 ROGER P. LEVIN, DDS FOUNDER AND CEO, LEVIN GROUP, INC. Dr. Roger P. Levin is a third-generation general dentist and the Founder and CEO of Levin Group, Inc., the largest dental management and marketing consulting firm in North America. As a leading authority on dental practice management and marketing, Dr. Levin has developed the scientific systems-based consulting method that increases practice production and profitability, while lowering stress. Levin Group has served more than 25,000 dentists and specialists since A keynote speaker for major dental conferences, Dr. Levin presents more than 100 seminars per year. He has authored 68 books and more than 4,000 articles. A regular contributor to the Journal of the American Dental Association, he sits on the editorial boards of five prominent dental publications, including Compendium. Dr. Levin received the Dental Excellence Award for Best Practice Management Consultant from DrBicuspid.com and has been named one of the Leaders in Dental Consulting by Dentistry Today magazine for the past 12 years. A recipient of the Ernst & Young Entrepreneur of the Year award, he has served on the Board of Advisors of the University of Pennsylvania, School of Dental Medicine, and taught at various dental schools as an adjunct faculty member. He is a former Chairman of the National Museum of Dentistry. Dr. Levin has been interviewed by The Wall Street Journal, The New York Times and Time magazine. More than 57,000 subscribers receive Levin Group s free Practice Production Tip of the Day s. 10 New Plant Court, Owings Mills, MD S. Priest Drive, Tempe, AZ