Dentists: Ignoring your collections percentage is like throwing money away
Dentists should get paid for the work they do. It’s a simple and important concept, but a difficult one to implement, according to this year’s Dental Economics/Levin Group annual practice survey.
The collections percentage for all general practices was a disappointing 91%. That means for every $100,000 in production, a practice is losing $9,000.
For an office generating $700,000 in total production, the owner would be out $63,000. There’s a lot you can do with that kind of money, such as buy a needed piece of equipment, upgrade your management software, pay down practice debt, or take home more income. I’m sure you could think of a few others.
Downward trend
What makes the 91% figure even more disconcerting is that it dropped 3 percentage points from last year’s survey mark of 94%. If dentists maintain such a low collections percentage over their careers, they could easily be losing hundreds of thousands of dollars. That’s why, when dentists become new consulting clients at Levin Group, we make improving collections a top priority.
If you want to increase your revenue, start by looking at your collections. Even an increase of a few percentage points could yield thousands of dollars in additional revenue each year.
Need a Speaker for Your Next Event? Arrange for Dr. Levin to present a seminar to your study club or association. A leading expert in practice management and marketing, he’s also one of the most dynamic speakers in dentistry. For details, contact our Seminar Events Manager Rebecca Luwisher at [email protected] or 443-471-3202.
Roger P. Levin, DDS, is chairman and CEO of Levin Group, a leading dental management consulting firm that is dedicated to improving the lives of dentists through a diverse portfolio of lifetime services and solutions.
Editor's note: This article originally appeared in the DentistryIQ–Apex360 weekly newsletter. You can subscribe here.
CATCH UP ON PAST DATA BITES
Here's the national average for case acceptance
The 2 biggest obstacles to practice success
The 4 best things about being a dentist in 2015 (according to dentists)
What expert advisors do dentists rely on?
Dental practices should follow the trend in elective treatment
Longer workweek and later retirement for dentists, new research shows
58% of practices don't use phone scripts
Do you have the necessary business skills?
Dentists anticipate postponing retirement
38% of dentists 'highly or extremely stressed'—analysis and solution from Levin
Why are only 27% of practices asking for referrals?
Practice collections climb to 94.3% in 2014
Dentists, you're still too stressed out
Dentists, update your Facebook page!
Autonomy is #1 again
For the most current dental headlines, click here.
