Attention Dentists: How to Build a Successful Dental Practice
We often come across offices that are more office-manager-run than dentist-run. This can be problematic. Dentists, YOU are the business owner. Here are 3 metrics that will gauge the pulse of your practice help safeguard for a successful dental practice.
1) Understand your insurance aging report
This report needs to be run weekly if not daily. It provides a precise snapshot of how your office is performing in terms of claims submission and claims processing. Claims over 30 days old (your over 30-day insurance aging report) should only make up 10% at most of all claims that have been created and sent (your over 0-day insurance aging report). For example, an insurance aging report totaling $100,000 should have at most $10,000 outstanding at over 30 days old. These claims are usually made up of secondary submissions and well as appeals. Having someone researching these claims daily will make sure that nothing slips through the cracks and claims don’t age and become forgotten.
2) Understand your collection percentage
Collection percentage is calculated by dividing your Total Collections by your Net Production ( Production – adjustments = net production) The average practice in the US has a collection percentage of 91%. This is too low. There is no reason that a 1 million dollar practice should be LOSING close to $100,000 annually due to poor practice management. The beauty of an average is that you have the potential to be the above-average outlier. This brings me to my next point…
3) Pay your providers off collections NOT production
This system makes the most business sense. The numbers work. Going back to item 2, ask yourself why you would pay your providers based on 1 million dollars when your office is only collecting $900k? Paying providers off collections brings the entire team together to focus on the same mission, to COLLECT 100%. Each team member is held accountable. All providers are invested in the practice as a whole rather than just keeping their head down and producing crowns. If you don’t collect on it, then you don’t get paid for it.
Why Outsource Your Dental Billing?
It takes diligence, time and focus to stay on top of these three business metrics and run a successful dental practice. Achieving a high collection percentage and favorable insurance aging report doesn’t happen on its own, and finding the extra time as an office manager or the business owner/dentist can be nearly impossible. That’s when outsourcing your billing can save your business.
Outsourcing your billing does not mean you’ll be giving up control, it’s actually the opposite. It allows your in-house office manager the focus and freedom to become the leader of your front desk, continue a patient-focused attitude toward the practice, and be a liaison between the practice and the billing company.
Only having one set of eyes on collections, insurance aging reports, reconciliation, insurance verification, and all other aspects of the admin portion of your practice can be detrimental to running a smooth operation. Outsourcing your billing adds expert dental knowledge in the form of multiple employees working at half the cost of a front desk administrator.
The outsourced billing company is:
- A write-off to your business
- A watchdog for improprieties/embezzlement
- An “employee” that NEVER takes a vacation
- An “employee” that works while YOU are on vacation
- An accounting-driven accurate poster
- A bulldog who fights insurance companies to collect what you produce
Most importantly, we maximize the potential for you to have a successful dental practice. We’re the experts at Dental Billing and you’re the experts at providing high-quality patient care. Why not leave the dental billing to us so you can focus 100% on your patients!
– Josh Smith
Get Started Today With A Quote!
We help dental practices all over the United States with our dental billing and insurance verification services. We’re dental billing experts and are passionate about helping dental practices collect 100% of their production. Contact us today to get started.