Protecting Your Dental Practice from Inflation
Posted in Articles | Tagged in Dental Practice Expenses, Inflation, Reducing Overhead, Increasing Production, Optimizing workflows, streamlining purchases, Dynamic Dental Advisors, DDA
Inflation is impacting nearly every aspect of our lives, and your dental practice expenses are no exception. As costs continue to rise, it’s important to have a plan to limit the financial impact on your practice.
Here are three ways to minimize the effects of inflation on your bottom line:
1.Controlling your overhead
A great way to do this, is to be more proactive about any larger purchases you may need to make. Start by assessing your current equipment (including its age, warranty and any future repairs or complete replacements that may be needed) and any new equipment you plan to purchase. This allows you to budget for any routine maintenance or equipment upgrades that are coming. Plus, you can keep an eye out for special promotions and financing offers for equipment you know you need, so you can keep costs down.
2. Streamline your supply purchases
You can save money and staff time by consolidating your purchases and only ordering from a few vendors. While you may find one-off items cheaper somewhere else, you’ll often save more just by reducing the amount shipping fees you will incur by placing multiple small orders across several vendors. You can also re-assess your usage to determine how much you need to keep on hand and only stock up on essential items when prices are low. It’s important not to over-stock your practice, especially for products with expirations dates. It’s literally just money sitting on your shelves and the last thing you need is to over-order and end up throwing products away.
3. Increasing production and/or fees
There are several ways you can increase your production, including:
- Outreach to patients who are overdue for an appointment
- Assessing your current schedules/workflows to optimize your staff time
- Incentivizing same-day treatments
- Implementing policies to reduce no-shows
If you are considering raising your fee schedule, be sure to check what type of fees are appropriate for your zip code and/or the insurance networks you participate in.
These are just a few steps your dental practice can take to minimize the impact inflation has on your bottom line. For more information on strategies to protect your practice against inflation and maximize your profitability, request a free Practice Optimization Analysis from our partner, Dynamic Dental Advisors today!
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