BENCHMARKS THAT SHOULD GIVE YOU PAUSE #6 – SUBSTANTIAL CASE PERCENTAGE
While this is the last installment in this series on benchmarks, it is still a very significant number to track. Once again, no one tracks this and it will give you an entirely different insight into productive scheduling and profitability. What we are looking for is the percentage of daily cases on your book that are at or about the value of what you would charge for a crown. So, a “substantial case” is anything at or about the value of a crown. 60% of your day needs to be in substantial cases in order to maintain a healthy production per hour and an overhead no higher than 63%, and hopefully less.
By now you should be realizing how these numbers are intertwined to help you see deficiencies in your key systems and protocols. Let’s look at an example: Assume that a doctor has a personal (production directly attributed to the doctor) goal of $5,000 per day. The key point here is that you must have a daily goal. If you do not, start setting one. 60% of this $5,000 per day production goal, or $3,000, has to be in substantial cases. Example: 5 fillings, impression for a denture or partial, implant, full mouth extractions, or some crown and bridge. It just needs to be at the value of what you would charge for a crown, but it need not be a crown to fulfill that substantial case goal. Essentially, it is the value of the appointment. It can be comprised of any procedure(s). Let’s assume this doctor charges about $1,000 dollars for a crown. Then this doctor would need to have 3 crowns to do that day or their equivalency in value. Anything less and your day will not hit a significant goal.
Let’s look at some reason’s why your day is not 60% filled with substantial cases:
• Not enough new patients.
• Demographics are wrong for substantial cases.
• Poor onboarding of new patients.
• A broken case presentation and acceptance.
• Not having your staff being engaged with the process of inspiring patients to get them to show up, pay for their treatment, and refer everyone they know.
• Poor financial coordination by your front desk team allowing the patient to fit the investment into their personal budget.
• Poor handoff from clinical to front desk with a patient that has not had their concerns about money, time, fear, and trust addressed to their satisfaction.
These symptoms of a failed scheduling strategy should not only give you pause, but also light a fire under you and your staff to effectively make the changes in staffing and systems to address and correct any deficiency. This is how you Summit.
Our next topic will take a look at multiple practices in the form of a privately held DSO or corporate entity. It will give you the information to look at your current situation as well as the structure and systems that make this a viable option to some of our readers. I look forward to hearing from you about your challenges and concerns. Just email me or give me a call.
Michael Abernathy, DDS