The Dentist's Network #100

Louis Malcmacher
DDS MAGD
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A One-Second Cure?

For those of you that have heard me lecture before, you have heard me say that before considering a new product or technology for my practice, I run it through a simple test. I simply ask myself: is it faster than what I am currently doing, is it easier, and is it better than what I am doing today? My main overhead principle of “Time is Money” certainly applies to resin curing – as this procedure is repeated many times over the course of each day in your office.

Over the past few years, we have seen a number of faster curing lights arrive on the market. Some have been good and some have not been so good. Some make the claims that they are 5 second curing lights, but then in testing they don’t even come close to what they advertise. However, as we know with technology, it is continually improving. In my opinion, the new faster curing lights seem to have reached the tipping point where they are now state of the art and the choice for every dental office.

My good friend, Dr. Gordon Christensen, introduced me to using fast curing lights in my practice nearly 10 years ago. Dr. Christensen published a study in the Journal of the American Dental Association in the year 2000 which had reported the time and money savings when the switch is made to faster curing lights. At that time, there was debate on whether fast curing had any clinical disadvantages and the issue of heating up the pulp came to the forefront. One thing that was clear in that study – dental practitioners who had switched to fast curing lights would not go back to their old, slow curing lights, and they certainly enjoyed the cost savings that were directly related to the time savings in their office.

When light cured composite resins first came out in dentistry nearly 25 years ago, those of us in clinical research dreamed of the day when a “zap” or one second cure would become available. Well, it’s now here. I was recently introduced to the FlashMax curing light sold by GOLDEN|MISCH. It was advertised as the fastest curing light available – capable of curing up to a 3mm depth in just 1 second. Like the typical dentist, I was very skeptical if it could really live up that goal. However, after using it and testing it myself and seeing what the Dental Advisor said about it, that 1-second cure I have been waiting for is now a reality.

It Is Faster!
You really cannot get much faster than a 1-second cure, so the FlashMax from GOLDEN|MISCH definitely is faster. The reason why the light can cure so quickly is because of its power. The FlashMax uses the very latest and advanced diode technology to emit significant amounts (4000mW/cm2) of powerful light at useful wavelengths. It has four distinct 15W high power diodes which are responsible for generating a much broader spectrum of light than most other LED curing lights. Because it has a broad spectrum of light, you do not need different tips to allow you to cure more materials. When I speak about this light in my lectures, I do not put it in the LED light category, I equate it with the more powerful (and much more expensive) plasma arc lights on the market.

It Is Easier!
The advancements in curing lights have been amazing. It is fantastic that they get that much power in such a small casing. The FlashMax is very simple to use, light-weight and easy to access the posterior regions of the mouth. With its cordless design, it can be taken from operatory to operatory and you can get about 200 cures on a single charge of the battery. It also uses the new lithium ion battery technology so it can go on and off the charger all day long without having to deplete the battery before charging. This means the battery retains its ability to charge fully and makes this light a great investment. By the way, in terms of investment, the FlashMax is very reasonably and competitively priced compared to the other LED lights out there.

It Is Better!
There is one challenge that has been associated with faster curing lights. The criticism about fast curing lights has always been that they can create potentially dangerous amounts of heat in the pulp. The Dental Advisor (September 2009) did a study on the FlashMax and concluded that there was a zero degree temperature increase within the pulp chamber (3 sec illumination). Based on this excellent study, we can be sure that the curing light is clinically effective, does not cause sensitivity or pulpal death, and has all of the benefits of fast curing, without the complications previously associated with fast curing.

Faster, easier, better dentistry is the key to bringing down your overhead and making dentistry more efficient, which relates to the direct patient benefit in delivering better dental services. The future of better composite resin dentistry just got faster and brighter with the combination of faster curing lights along with the incredible dental materials we have today.

Dr. Louis Malcmacher is a practicing general dentist in Bay Village, Ohio, an internationally known lecturer, dental consultant and author, and is President of the American Academy of Facial Esthetics. Interested in knowing more about how to truly enjoy dentistry? Click here.

Interested in having Dr. Malcmacher speak to your dental society or study club? Click here. To reach Dr. Malcmacher, email him at DrMalcmacher@thedentistsnetwork.net or call 1.800.952.0521.

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Thomas L. Snyder, DMD, MBA
The Snyder Group, LLC
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The Profitable Associate – In Today’s Tough Times

Back by popular demand is an article that addresses whether your associate can generate a profit. The answer is in the size of your patient base. If you have a saturated practice with an abundance of patients, you can keep your associate busy and generate a 30-35% profit margin. The first step after accurately measuring the size of your patient base is to perform a cost benefit analysis to determine the likelihood of profitability, as well as to gauge the non-monetary benefits such as improved quality of life, which may be equally important. The following steps will help you analyze the economic sense of hiring an associate, and will help you set realistic expectations about the return on investment you are likely to attain.

Step 1: Determine Production Goals
Your associate’s skills and experience will affect anticipated production goals. Additionally, your fee schedule as well as the services provided will influence overall possible production. To estimate annual production, choose a daily production goal and multiply by the number of days per year that your associate will work. (Depending on your practice’s services, geographical region, and fee schedule, typical daily production in the beginning may range from $1,000 to $1,800 per day.)

Next, determine your practice’s overall collection/production ratio. For example, if your projected gross production is $800,000 and you historically collect 95% of your gross production, the anticipated revenue would then be $760,000. Next, multiply your collection production ratio by the associate’s estimated annual production goal to establish the anticipated revenue from your associate.

Step 2: Assign Direct Expenses to the Associate
Allocate all direct expenses to the associate to get a better handle on the investment you are making. For example, if your associate will require a new dental assistant, list the dental assistant’s salary and fringe benefits as a viable expense. Additionally, figure the cost of administrative staff that may be added due to increased associate office hours. Estimate the associate’s dental supply costs by multiplying your own overhead ratio for dental supplies and multiplying it by the associate’s anticipated revenue. Next, estimate the associate’s lab expense. For a quick calculation of lab expense, multiply the associate’s anticipated revenue by 8 percent.

As an alternative, if you can project the number of lab related procedures your associate can produce annually, multiply that number by your average unit lab cost. If you will be purchasing additional equipment or adding an operatory for your associate, include these costs as well. Finally, write down the associate’s annual compensation and any fringe benefits that may be provided. Annual compensation should be within the regional compensation averages for your area.

Step 3: Apply the Formula and Get the Answer
To forecast the likely profit margin on an associate, apply the formula using your specific numbers. While the profitability of an associate is measured in pure financial terms, the advantages of hiring an associate often include benefits that defy measurement. If your calculations indicate that profit margins are less than the 30-35% goal, be sure to gauge the intangible value of increased family time, improved quality of life, or better access to care for your patients. Remember that the addition of an associate can provide not only economic sense, but also common sense, when it comes to your personal and professional goals.

Associate Profit Analysis Summary
Daily Collection - $950
(Assume 95% Collection/Production Ratio on Daily Production Goal of $1000)
# Days Worked Per Year X 196
Projected Annual Revenue $186,200

(Assume 34% Collections) Associate Compensation - $63,608
(6% Dental Supplies) Associate Payroll Taxes - $4,843
(8% Lab Expenses) Associate Lab Expense - $14,896
Associate Supplies - $11,172
Assistant Salary (inc P/R tax) - $21,620
Uniforms - $200
CDE Allowance + $1,100
TOTAL EXPENSES - $117,439

Projected Annual Revenue: $186,200
Less TOTAL EXPENSES – $117,439
Associate Profit: $68,761

PROFIT MARGIN: 37%
($68,761 PROFIT / $186,200 ANNUAL REVENUE)

Next Steps After the Math

Contracts
Once you’ve assured yourself that the economics make sense for your associate, proper planning is key. The first step is to discuss all the terms and conditions of your associate’s potential employment and then have an employment contract prepared. Make sure you have an attorney who has dental experience and/or a consulting firm who can recommend the nuances that an associate contract should contain. For example, should a restrictive covenant be in force from the first day of employment or should it be graduated over time? Should your associate be prohibited from soliciting your patients as well as your staff? Should you place restrictions on the lab selection? If your associate leaves after a few months, on their own volition, after investing thousands of dollars in marketing, should you be reimbursed? These are just a few of the key questions that need to be addressed in your associate employment agreement. “Off the shelf” documents will not do justice to these key areas, only properly prepared contracts will.

Consultant Assistance
Finally, we found it very helpful for you to engage a consultant to assist in preparing your practice for the associate. Marketing your new associate is a key ingredient to success and it starts with proper communication. Staff verbal skills are needed to properly introduce the new associate as well as get an existing patient to accept the new doctor. Additionally, to make sure that the associate meets his or her production goals, utilizing scheduling templates ensure that the associate will meet target goals.

Most importantly, if this associate is a candidate for your long term transition plans, make sure that you properly think about your exit strategy so that once you begin interviewing candidates, you clearly spell your vision for a successful relationship.

Dr. Thomas L. Snyder, Director, Practice Transitions for The Snyder Group, a division of Henry Schein Professional Practice Transitions. With over 75 years of experience in the field, The Snyder Group can provide you a full range of services relating to practice transition matters. They can be reached directly at 1-800-988-5674

If you would like additional help, email Dr. Snyder at drsnyder@thedentistsnetwork.net

Interested in having Dr. Snyder speak to your dental society or study club? Click here.

Hear Dr. Snyder’s FREE podcasts at The Dentist’s Network - HERE

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Dr. Lorne Lavine
Dental Technology Consultants
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Dental Websites

In a down economy, it’s common for dentists to cut back on their marketing efforts due to fears about how the recession will affect their practice. In my opinion, this is a big mistake, and usually just the opposite is needed. Dentists need to find new and innovative ways to attract new patients to the office. In 2010, the marketing hub of most practices should be centered around the practice Web site. In my experience, though, many dental Web sites miss the mark when it comes to attracting new patients. Here are some basic concepts to keep in mind.

1. Understand Your Business Model
This may seem easy, but many offices have not taken this first step. You need to ask yourself: “What do my patients really want, and how can I make money from that?” You’ll also need to evaluate where you are currently spending money in your practice and, most importantly, how your Web site can support the above points. This would often be through modern conveniences like online scheduling, completing patient forms online, automated reminders, and newsletters.

2. Understand Your Customer
Notice I said customer, not patient. You need to realize that patients are consumers and they shop for dentists just like they shop for other services. Don’t discount your older patients … 65+ is the fastest growing segment of online users! You need to find marketing that will stir emotional responses from your existing and potential customers. If you don’t know what your patients want, ask them… they will let you know!

3. Lay Out The Process
There has to be a method to your madness. The protocol should be designed to get people to the Web site, catch their attention as soon as they get there, and then make it easy for them to provide contact information. Many practices have found that free reports or other giveaways are a good way to provide a service for prospective patients while establishing your credentials at the same time.

4. Use Outbound Promotions To Draw People In
Remember that famous line, “build it and they will come?” Well, guess what… it was from a movie. It’s not a business strategy - there’s no way that patients will find you if they don’t know you are there. You’ll likely want to focus on more traditional methods to raise awareness of your site: direct mail, newsletters, postcards, etc.

5. Give Them An Incentive To Sign Up
Getting a visitor to your Web site is half the battle. The rest is getting them to provide you with their contact information. People are reluctant to do this, so you need to make them an offer. It may be access to a free newsletter, access to reports, perhaps a discount on services you offer, etc. You’ll have to figure out what works in your specific community.

6. Maximize Design and Content
Many dentists do not have degrees in design, so why they try to do this on their own is beyond me. There are very qualified people out there who can help you design a Web site that won’t break the bank. Keep it clean, keep it simple, keep it unique. You should have photos and other pictures on the site, as long as they enhance the content, not distract people from it. You should keep the customer in consideration here - think about what they want, not you.

7. Close The Sale
If a prospective patient does complete your online form, someone from your office should be following up within 48 hours - and no, an e-mail doesn’t count! This should be a live human who does this. Many offices report that having scripts makes the process much easier, as you really should have an objective in mind. A basic rule of thumb: have three questions and give one piece of information up front.

8. Track Visitors
The area where many dental Web sites fail is proper tracking of visitors. Many tools are available for tracking visitors, and quite a few are free. Google Analytics and HiStats are two that I have used with great results.

9. Learn To Adapt
Finally, like all creatures that evolve, you need to learn to adapt. Things that work now may not work in the future, and until you’ve tried some ideas, you have no idea how successful they will be. Keep an eye on things and make changes as they become necessary.

Web sites are no longer billboards that you plaster online and then wait for the calls to come in. You need to be proactive and monitor your Web site on a regular basis.

Lorne Lavine, DMD is the Founder and President of Dental Technology Consultants. Dr. Lavine holds two prestigious certifications, the A+ Certified Technician designation and the Network+ Certified Professional. These designations demonstrate proficiency in computer repair, operating systems, network design and installation. Dental Technology Consultants provides dentists a full range of services relating to the implementation of technology.

Interested in having Dr. Lavine speak to your dental society or study club? Click here. Dr. Lavine can be reached at drlavine@thedentistsnetwork.net.

Hear Dr. Lavine’s FREE podcasts at The Dentist’s Network - HERE

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