Dental Practice Made Simple is a video series from DrBicuspid.com and Levin Group. Tune in every Wednesday for a quick tip from Dr. Roger P. Levin to learn how to build high-powered, proven systems that lead to practice success.
Dentists can reference many key performance indicators to gauge the success of a practice, but only four are key numbers, according to Levin. He detailed why he recommends focusing on production, revenue/collections, new patients, and cash in the latest episode of Dental Practice Made Simple.
"Those four numbers will tell you a story if you look at them consistently, and that is a way to keep dental practice simple," Levin said.
Levin believes production is the single most important metric in the entire office, but revenue/collections are important to make sure you are collecting revenue from your production to pay bills and essentials. In addition, new patients are more financially valuable to a practice than existing patients, and cash can help practices weather financial storms.
Once you know those four numbers, you can reference others to help figure out why a metric may be off, Levin said. For instance, a dentist hoping to understand why production has dipped may look at no-show, reimbursement, and individual team member production statistics.
"If any of them are off, or not where they are supposed to be, then you start digging into other numbers to find out what is going on," he said.
Learn more in the video below.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email [email protected].
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