Inflation is here and it’s real. Even if it improves, it isn’t likely that inflation rates will return to the extremely low levels of 2012-2021 for a while. This can have short- and long-term effects not only on practice profitability but on the ability of dentists to retire at a reasonable age. The good news is that there are effective strategies that can help offset inflation.
Be creative with staffing costs. Due to staffing shortages, Levin Group estimates that staff compensation has increased nationally by approximately 10%. We advise that practices be creative. For example, one practice offered staff members a significant bonus directly tied to increases in practice production. Not only could staff members do extremely well if they hit goals, but the doctor can improve their income as well.
Don’t forget to eliminate waste. There are many tasks being done by habit that either no longer need to be done or could be done much more efficiently. Wasted time means wasted money. Each practice should examine its systems and establish a daily checklist for every team member. By working through a checklist, you’re able to identify which steps and tasks are necessary and which are not.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email [email protected].
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