Practice Management Toolkit Taking Advantage of the Information Age Roger P. Levin, DDS
In this age of ever-expanding technology, the public has instant access to information on any topic they choose, particularly health care. Although armed with a variety of information, people still seek to verify that information with professionals in the field. In the past, it was sufficient for a dentist to provide adequate dental care and then simply schedule that patients next hygiene appointment without expecting patients to seek alternatives to care or to ask questions about their care. Todays patients are information savvy and expect their dental practitioners to be as well. Because many patients are now seeking esthetic care from their dentists, dentists need to be aware of the technologies and options available. One way of improving the profitability of esthetic dentistry without excessive cost to your practice is to take advantage of the information provided to the public as a result of the varying trends in society. What Information? In the past, many Americans went to the dentist only “because my tooth hurts." It was Procter & Gamble’s advertising campaign for Crest® toothpaste that endorsed the public’s awareness of “see your dentist twice a year.” Most Americans adopted this standard, and it has allowed the dental profession to provide both preventive- and treatment-oriented services to patients on a regular basis. Now, in an effort to increase awareness of their new product, Crest Whitestrips™, (a “trayless” system that whitens teeth through a small amount of hydrogen peroxide gel on a thin polyethylene strip), Procter & Gamble has committed approximately $90 million to its advertising campaign, which is a record level of spending on consumer awareness for a tooth-whitening product. The launching of the Whitestrips advertising campaign may make many people begin to think of esthetic dentistry in a new light. This increased awareness of esthetic dentistry can easily translate into increased patient acceptance of the many whitening treatments available in the general dental practice. Levin Group statistics indicate that pure cosmetic dentistry represents less than 4% of the dentistry provided by more than 90% of dental practices. The low delivery rate of esthetic services is in part the result of cost and perceived need. Many sectors of the population feel they simply cannot afford the fees. Despite the many financing options available to address the monetary issue, many patients still refuse esthetic treatment because of cost. The issue also includes perceived need and personal justification of the purchase. Until now, esthetic dentistry has simply not been a priority for the American public. Through Procter & Gamble's extensive advertising campaign, an opportunity has been created for general dental practices to expand their number of esthetic dentistry cases and to educate patients about the overall benefits of tooth whitening. There is some truth in advertising, and through increased awareness of tooth whitening, we anticipate that many more patients will be asking their dentists about enhancing their smiles. Take Advantage of Current Trends When patients come to you for advice on Crest Whitestrips, you may feel that tray whitening is the better choice. I, personally, am puzzled that more tray whitening procedures are not being performed, especially as the introductory step toward more sophisticated cosmetic procedures. As more patients come to the dentist to ask about tooth whitening and cosmetic dentistry, the amount of whitening performed by dental practices could literally triple. Keep in mind that because of the national advertising campaign, patients will now be presensitized to improving their smiles. This is where the growth in whitening, as well as other esthetic procedures, will emanate. Incorporating New Treatments When introducing a new product or treatment, the key is to motivate patients. Motivating patients requires excellent verbal skills as well as an ability to educate them. Again, the whitening promotional campaign will be of tremendous importance as a springboard from which you can motivate and educate your patients. This should also indirectly assist the dental team in the case presentation process for tray whitening. Financial Analysis In addition to the long-term benefits of treating more esthetic dentistry cases, there is also the short-term financial benefit of incorporating tooth whitening into the dental practice. As a result of the advertising campaign, patients will ask about Crest Whitestrips. It is important to understand that the professional-strength Whitestrips product can be profitable to the dental practice, even though the total profit for a Professional Whitestrips kit is less than the tray whitening alternative. However, the increase in volume can make this a profitable and viable service for the dental practice. Furthermore, the time it takes to explain the use of the kit is minimal. Hygienists or assistants can give most of the patient instructions. A projected financial model is shown below. My estimate is that most practices will be able to charge $65 or more for using the Crest Professional Whitestrips kit because in comparison to the retail kit, the professional kit has a higher peroxide content, provides more strips, and enhances the overall whitening process.
The financial analysis illustrates that the practice would realize a profit of $39 on each Crest Professional Whitestrips kit, a profit of 150% more than the cost of the actual kit. If the number of patients in a practice is 1,800, using the above $39 profit per kit, the total profit to the practice will be $35,100, if half of the patients were to accept the professional kit whitening procedure.
The average practice typically turns over approximately 15% to 20% of its patients annually, which provides an ongoing flow of whitening opportunity for every new patient. Because more new patients will be interested in whitening and esthetic dentistry as a result of the advertising campaign, the dental practice now has a tremendous opportunity to create an expanded profit center. The addition of tray whitening and other esthetic services that will be of interest to patients could add another $100,000 to $150,000 of annual revenue to the practice. If only 100 patients per year accepted an additional $1,000 of other esthetic services to improve their smilesthat is a $100,000 increase in revenue. If you incorporate Crest Professional Whitestrips into your dental practice, be sure to recall every Whitestrips patient to perform a final cosmetic exam and point out any other areas that can still be improved through other esthetic services. Your esthetic practice could explode overnight. Conclusion One way of improving a practice's profit margin is by taking advantage of the trends occurring in society. Our economy is based on the concept of capitalism, and being a dental professional does not preclude you from taking advantage of profitable opportunities. Procter & Gamble's advertising campaign may do a great deal to make a beautiful smile important to the American public. An increasing number of patients will therefore begin to ask about improving their smiles. Our role as dentists and dental team members is to continue to educate our patients and motivate them toward esthetic dentistry, making it as much of a standard as haircare, make-up, and fashion. Take advantage of the current trend toward esthetic dentistry, and propel your practice to the next level of profitability.
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Dentistry is often
viewed as an isolated profession, both in the eyes of the public as well as
dentists. In the past, people went to the dentist simply to have a tooth
pulled or filled, and did not expect the dentist to provide any other service.
Now, however, patients expect more services than ever before from dental
professionals. Esthetic dentistry in particular has opened horizons beyond
those ever experienced in dentistry. Patients are seeking to not only save
or have their teeth filled, but to have them straightened, whitened, and filled
with tooth-colored materials.
Levin
Group is the nation's leading dental practice management and marketing
consulting firm, building practice profitability through advanced
management systems for 15 years. In an effort to address the issues
that are important to the dental profession, Dr. Levin welcomes your
practice management questions. Please fax or mail your comments to
Dr. Levin at The Compendium (fax 732-656-1148).