If you want to succeed in business, you need to be able to assess what you’re doing. Otherwise, how can you figure out what’s working and what areas of your company need improvement?
Trouble is, too many dental practice owners don’t bother to do this. Dentistry is a noble calling, not just another profession, right?
Sure. But just because your mission is to help your patients doesn’t mean that your practice is not every bit as much a business as the convenience store down the street.
And if you want to keep your patients healthy, your practice needs to be healthy, too.
So here are the three groups of KPIs you need to measure in order to keep your practice in good shape. (Big shout out to Orthodent co-founder Dr. Tarek Aly for these.)
1. Strategic KPIs. Track things like:
- Overall mission
- Target markets
- Patient care milestones
- Number of locations
- Specialties you offer
- EBITDA (earnings before interest, taxes, depreciation, and amortization)
- Net worth
2. Operational KPIs. Track your:
- Number of new patients
- Production collections
- RCM metrics (like collections percentage, adjustments percentage, days of sales outstanding)
- Reputation (positive and negative reviews)
- Net promoter score
3. Financial KPIs. Measure your:
- Spending (supplies percentage, payroll percentage, doctor payroll percentage, facilities percentage, etc)
- EBITDA (yes, we included it twice)
Follow these, and you’ll have the numbers you need to grow smarter and more successfully.