Incremental Revenue – A Series – Part 5 – Financial Arrangements

Introduction   

This installment in the Incremental Revenue series will focus on the benefits and incremental revenue found by making dentistry affordable.  There are many options open to help patients pay for their dentistry other than discounting your fees.  We will be looking at those options as well as the psychographic factors that affect patients’ perceptions of the cost of their dentistry.

Proposition 

Did you know that 2 to 3 million Ontarians avoid trips to the dentist…

Incremental Revenue – A Series – Part 4 – Hygiene Revenue

Introduction   

This installment in the Incremental Revenue series is the first to deal directly with revenue sources.  Installment #3 focused on new patients, an important raw material for providing incremental revenue.  In this installment, we investigate specific areas within the practice where a dentist can find incremental revenue.

Proposition   

In most practices, hygiene operations are the source of the greatest amount of incremental revenue.  Incremental revenue comes from either additional hygiene services or dental services. …

Incremental Revenue – A Series – Part 3 – New Patients

Introduction   

At this point, we will have elaborated on the value of incremental revenue and the essential components of incremental revenue. For the next eight or nine installments, I will expound on different ways to add incremental revenue to your practice.  The topic for today is the effect of new patients.

Proposition   

One of the main components of the incremental revenue function is new patients.  We have already established that patients are a dental practice’s…

Incremental Revenue – A Series – Part 2 – Roots

Introduction

While we have determined that incremental revenue can increase practice profit and value significantly, I need to explain in general terms the factors that contribute to incremental revenue.  The concept of incremental has to do with minor changes made to an entity that already exists.  If a child’s height were 91cm several months ago and is now 95cm, the additional 4cm would be the child’s incremental height from the first to the second measuring. …

Incremental Revenue – A Series – Part 1

Introduction   

Incorporating Incremental Revenue (“IR)” into a dental practice significantly increases cash flow and practice value.  This series of articles will be explaining how IR works, identifying the components of IR and uncovering the areas in a dental practice where IR exists.  Our initial focus will be looking at what IR is, why you want it and how you can find it.  We will also talk about the necessary components for taking full advantage…

The Importance of Associate Contracts

Do you have an Associate?

If the answer is yes, then the next question is do you have an Associate Agreement?  In most cases, the answer to that question will be Yes, however far too often the answer will be No. Some will make the argument that you and your Associate have a “Verbal Contract” and in some eyes, you may. If you think you have a verbal contract, then have both parties independently tell…

What is the Lifetime Value of a Patient to Your Dental Practice?

A dentist without patients does not have a great future. In addition to being “customers”, patients are also the “raw material” of a dental office. Like any business, no raw material equals no revenue.

There are two key economic factors to consider with respect to having adequate raw materials or patients. 

1. How much does it cost to acquire them?
2. How much does it cost to maintain and keep them?

So where should you focus?  Should…

Stop Worrying and Start Tracking these Five Essential Metrics

If there was ever a reason to kick start the engines it surely is now.  It’s a new year, we have new vaccines – it’s a new beginning!  What are you waiting for?!

Let us start by exploring what we call the “Magic Metrics” of successful practice growth and operation – metrics that we have been teaching for years.  Hill Kindy is in the brokerage business but in the past, we also provided clients all…

How Many DPCs are Enough?

How many dentistry professional corporations (DPCs) does one dentist need?

The answer is: One for each practice that you own. For sure someone is going to tell you that it would be much cheaper if you just put all your practices into one DPC, however, that advice is awfully short-sighted.

It is undoubtedly cheaper to just set up one DPC versus multiple, and it is cheaper to maintain on an annual basis; so why do you…

Cost Sharing Partnerships

Practicing in a dental partnership can be a great experience or it can be a nightmare. As a brokerage, we deal with Equity Partnerships and Cost Sharing Partnerships all the time and I would say that, on average, dentists who have been in Cost-Sharing Partnerships would be split 50/50 into the positive and negative aspects of the arrangement. Interestingly enough there are actually some systemic reasons why Cost Sharing Partnerships have such a bad…