Since the Great Recession, a majority of orthodontists have experienced flat or declining production. Unfortunately, some have reacted passively, waiting for the dental economy to improve. Others have taken action, but without first figuring out where they stand now. Neither approach makes sense.

If you’re serious about improving your business, start with a careful analysis of your practice’s vital statistics—what we at Levin Group call Key Production Indicators (KPIs). Taken together, these performance metrics provide the solid, objective picture you need to pinpoint where your practice has been falling short—and what growth strategies will yield positive results most quickly.

The Analytical Process

1) Select which KPIs you’ll track. Narrow your diagnosis to a dozen or so data points. Depending on your situation, you may select such metrics as:

  • Number of referrals received;
  • Number of referrals who become patients;
  • Case acceptance rate;
  • Practice gross revenue;
  • Fixed and variable operating expenses; or
  • Collection rate.

2) Collect the data. Pull together numbers for the previous 12 months. No guesstimates or projections allowed. If you can’t come up with hard data, that’s probably one of the reasons your practice is underperforming.

3) Compare your KPIs with performance targets. See how close your numbers are to national averages or to targets such as these established by Levin Group:

  • 99% collection rate;
  • Referrals from 40% to 60% of patients annually;
  • 90% case acceptance;
  • 98% of patients scheduled at all times; or
  • Less than 2% overdue debonds.

4) Analyze results to pinpoint areas for improvement. You may discover that you need more referrals… or that you need to convert more of them into patients… or that you need to close more cases… or collect more of what you’re owed… and so on.

Only by conducting such a numbers-driven analysis—ideally with the assistance of an outside expert—can you lay a foundation for consistent, long-term ortho practice growth. OP[sidebar float=”left” width=”450″]?If you’d like to find out how to increase ortho practice production, call (888) 973-0000 to schedule a 1-Hour No-Cost Practice Diagnosis—available only from Levin Group—with one of our Certified Practice Analysts.