POWERED BY DENTALTOWN.COM Uncomplicate your dental life with Dr. Howard Farran as he interviews your fellow townies and leaders in dentistry! Dentists and dental professionals share their wisdom to make your dentistry faster, easier, higher in quality and lower in cost. Episodes released every week…
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Nolan Patel is a recent graduate of the University of Michigan School of Dentistry. He started off working in private practice part time for his mentor and part time at a DSO. At the beginning of 2021 he switched full time to the DSO and has recently started looking into practice ownership. To stay up to date with dentistry he attends Spears CE courses and in his free time you can find him checking out local bars and restaurants in Chicago. Join the community on Dentaltown at https://www.dentaltown.com
Howard answers the question "sometimes patients don't want exam with the prophy for whatever reason. Can you submit exam code with the prophy if dr. doesn't see patient? What is the legal status around this? Join the community at www.dentaltown.com
How do you compensate hygienists for additional cleaning? Dr. Howard Farran takes community questions and gives you his uncensored take on everything dentistry related. Reply to these videos, or use the hashtag #askhoward on Twitter or Facebook to submit a question for Howard. Join the community on Dentaltown at https://www.dentaltown.com
As seen on the Doctors, founder of the nation's largest new dentist and student community, Dr. David R. Rice travels the world speaking, writing and connecting today's top young dentists with tomorrow's most successful dental practices. In addition to igniteDDS, David is Chief Editor of DentistryIQ and leads a team-centered, restorative and implant practice in East Amherst, NY. With 28 years of practice in the books, he's trained at The Pankey Institute, The Dawson Academy, Spear and most prolifically at the school of hard-knocks. Join the community on Dentaltown at https://www.dentaltown.com
Dr. Gebrehiwot was born in Eritrea, East Africa. He won a diversity visa lottery to come to the United States and arrived here without any family or friends or any sense of direction. When he arrived, he worked odd jobs while starting with English for Second Language Speakers at Phoenix Community college. After graduation he was fortunate to get a job with Motorola as a Product engineer. Working for Motorola provided health and dental insurance, which allowed him to go to the dentist for the first time ever in his life. This very experience shook him because he had calculus, cavities, bleeding gums and so on. After following through with his oral care, and the impact it left him to have a better self-esteem, he decided to switch gears and change careers into dentistry. He started dental school at the age of 32. After dental school he worked as an associate in different corporate dentistry and finally he decided to start a scratch practice in Wylie, Texas. Join the community on Dentaltown at https://www.dentaltown.com
Try using a longer leash to attract and retain the most talented people that reflects your company's mission and values which includes building an employee-focused culture. You build your patient base with word of mouth referrals, the same holds true with attracting new talented employees and why they should be involved in the recruiting process. We have several mother / daughter employees who claim working together all day is the best part of our benefits package.
Dentists could learn a lot from Sol Price (1916-2009), the founder of Price Club in 1963, which became Costco, which pioneered the membership, absolute pricing authority, warehouse store retail model. The membership model is currently one of the hottest trends in retail. A store that tries to be all things to all people will end up being nothing to anyone. A retailer reflecting honesty, credibility, and a definite direction that can be understood by its customers and vendors will have a good chance to make it. Costco's 3 Business Categories: Personnel, Product & Facilities. Costco's 6 rules: Have the right kind, in the right place, at the right time, in the right quantity, in the right condition, at the right price. Costco counts on very significant productivity because they pay high wages and benefits. If you buy into the concept that Costco is the low-cost provider of goods and services and also pay the highest wages in retail and have the richest benefit plan, then we must be getting better productivity, because of every dollar that we spend on our business, $0.70 is on people. There's a categorically false notion that the only business model in the service industry is the minimum-wage business model. Costco people work for years making great money plus health benefits. 87 million people have a Costco card because they have absolute pricing authority meaning if you see it at Costco, you're sure it's the best price you can find. Advertising is cost. The only secret to lower prices ins lower cost. So, if you spend 1-3% on advertising, you'll raise your cost which will raise your prices. Advertising is like heroin, once you start doing it, it is very hard to stop. Word of mouth is the lowest cost most effective type of advertising. Costco saves 2% a year in costs by not advertising. In 2017 Amazon spent $6.3 billion in advertising, Target $1.4 billion, Walmart $2.9 billion. The average markup at Costco is just 11%, Walmart is 24%, Supermarkets 30%, Home Depot and Lowe's 35%.
In baseball and HR, three strikes and you're out. So, if you fire someone and they're surprised, you need to reexamine your ability to manage and lead your team. Sometimes no matter how many times you tell someone they're not performing and meeting expectations, they just don't get it. However, more times than not, managers and leaders want to avoid confrontation and they don't ever address the issues with someone and instead avoid the person. That's being a horrible leader or manager. Let's say you open at 7:00 am and your assistant rolls in at 7:05. Young dentists are mad but don't say anything. The better managers, as soon as time permits will call the employee back into their private office and explain the problem, open up a word document and leave while the assistant types out in their own words what went wrong and explains why it won't be a reoccurring problem. Many times, you comeback to learn that she does this because she always stays an hour after we close while the other assistant flies out the door and she doesn't think it's fair. This is what you need know so you can build a winning team as opposed to other more common method where the first time it made you mad and you didn't say anything. The second time it made you madder and you still didn't say anything. Then the third time you erupt like a volcano and fire them. This person had no idea this was going to happen, they have monthly bills they need to pay, and now they're shocked, saddened, and unemployed, all because their coach never showed up for the game. Watch any professional game and watch how the coach is intimately involved during the entire game, standing at the sidelines calling in plays, time outs, etcetera. Now watch Doc go back to their private office in between every patient and shut the door. If this is you, then you need to delegate to an office manager that has the same authority to make plays that match their responsibility. You're either the coach or a player, cuz you can't be both. So, play ball... and okay to win.
Getting to Yes by Tracking No means you better know your overhead and break even point for the day. The average net income for: Dental Specialists ($320,990) General Practitioners ($197,190) Dentists who owned their own practices ($244,980) Dentists who were employed at a practice ($147,950) Oral and maxillofacial surgeons $448,140 Periodontists: $330,690 Endodontists: $307,460 Pediatric Dentists: $304,280 Orthodontists: $289,190 Prosthodontists: $219,950
Does your dental team celebrate as much as your family? Do they spend more time discussing problems than celebrating victories? The whole team is greater than the sum of each team member. There's no such thing as a self-made dentist. You're only gonna reach your goals with the help of others - and that means having fun.
Is a bird in your hand really worth two in the bush? Is it really better to hold onto something you already have than risk it all for a double? Did capitalism die? Why didn't you keep your fast-food job instead of spending years and student loans for something better? Saving money for retirement is about laying out a bird now to get two or more out of the bush. Do you really want to be an associate dentist? When you decided to be a dentist back in grammar school did you envision yourself as an employee dentist or the dentist owner of your own dental office, land, and building? Associate dentists are paid just enough money to kill all off all their dental self-mastery dreams. Don't settle for a sure bird in your hand today if you have already proven that you have the internal self-discipline of delayed gratification to invest it in yourself in the hopes that someday it will be worth two birds. Dentists know this or they would have invested eight years of their life and half a million dollars to get a dental degree.
Transparency vs Opaque. I was wondering why successful dental leaders are transparent and not opaque until it became clear to me that if your not it's clearly offensive. Does your dental office team know the daily breakeven point? Do they know the office overhead? Do they get to see the accounting reports for the balance sheet, statement of cashflow, and statement of income? Management transparency is the key to trust and the foundation for strong management-employee relationships to analyze and grasp how the practice is doing and where we're going. Are collections meeting expectations in the 30/60/90 day periods? How's are overhead looking and could we lower it? Are costs being managed? What's helping us achieve our goals? What are our obstacles? Everyone in the entire company has complete visible transparency into the budget, how and what we're spending, what our results are, and does everyone have a voice on how we can improve our performance. How often have you heard that people leave a job because of the manager not because of the company? It's true whether it's a small family dental practice or a large dental group practice DSO. One of the common complaints you hear from disgruntled employees is they don't trust their dentist or office manager who is not very transparent, and have no idea what they're thinking, what is happening, the performance of the office and don't know what's coming up in the future. If you can't trust your opaque non-communicating dentist, office manager or team leader then your life and work become an exhausting challenge day in and day out. The late Herb Kelleher (1931-2019) co-founder & CEO of Southwest Airlines was the only airline CEO who was a member of his own pilots union because he knew how important that relationship was. His book was called Nuts!: Southwest Airlines' Crazy Recipe for Business and Personal Success. Maybe it's time to go nuts and start trusting your employees to help you become successful.
Dentistry could learn a lot from Sanford I. Weill, the former CEO of Citigroup who tried to join the Air Force until his application was denied by a dentist after examining his teeth. His major break on Wall Street came with a mundane job doing g the paperwork behind the brokers trades. Sandys success with Citigroup came from mastering the back office mundane details of Wall Street trading, banking, insurance, and finance creating value from the knowledge and details of accounting, record keeping, and every other mundane task that was mostly unknown to all the major CEOs. How many dentists could do every task from scheduling an appointment to billing the dental insurer company. Sandy Weill fired Jamie Dimon when he was 66 years old because Jamie wanted to be CEO and then Sandy retired four years later, and in that time, the ship of Citi was wrecked. Young associates share this same issue working for older dentists who swear they are about to retire, it's never in writing, the older dentists keep delaying their retirement, with nothing in writing, and eventually the relationship breaks down and the younger dentist moves on. Tearing Down the Walls: How Sandy Weill Fought His Way to the Top of the Financial World https://www.amazon.com/Tearing-Down-Walls-Financial-Journal/dp/0743247264/ref=asc_df_0743247264
Let's get back to the pre-pandemic mindset. If you're double vaccinated you know this pandemic is over. Let's get back to fight mode in building a championship dental office. What do champion dentists do more of that their colleagues don't?
Dentists could hit a Hank Aaron sized grand slam if they could just learn and implement any of the major business lessons that Denny's have used in over 1,702 locations since Harold Butler and Richard Jezak founded the first Denny's in 1953 in Lakewood, California. Denny's are 24/7/365 explaining why in 1988 more than 700 of their 1,221 stores didn't even have locks. During an economic contraction being poised for growth means you're conveniently available, with low enough overheard, to perform profitable, high volume quality dental services with low prices. During an economic expansion… this strategy is even better. I'd rather own McDonalds (MCD) any day with a $177 Billion market cap than Ruth Chris (RUTH) with a $700 Million market cap.
Chris Pistorius talks with Dr. Howard Farran, the founder of the incredibly popular online dental community, Dentaltown. Chris & Howard have an open and honest conversation about all things dental.
First you need to stop doing it backwards. If you get the wrong person you spend all your time managing that person, you get poor results, and then you look like a bad manager. Get the right person who is already internally motivated, loves to work, loves their new job, who gets along with people, now you barely have to manage them and they're making you look like a pro, because that's how the pro's do it. Sporting teams couldn't manage me to be an NFL quarterback or the next ballerina. Your new hire has to already have the natural ability first. As far as turnover, it should mostly be at the new employee beginning as you and/or the new hire find out the new job isn't a fit and then at the other end have employees that have been with you since the beginning. Whenever the person doing all the hiring is the only person in the company who's been there for more than five years and no one else has made it five years then the wrong person is doing all the hiring.
What is the best use of my dental office profit dollars?Only 60 of the Fortune 500 companies in 1955 were still listed in 2017. Over 50% of the S&P 500 has disappeared since 2000. Economist Joseph Schumpeter called this creative destruction in 1942. Mufasa called it the circle of life in the 1994 Disney children's movie Lion King remake of Shakespeare's Hamlet in 1603. This is why how you allocate your capital is not only the most important business decision you'll ever make, it's also the most important financial life decision you'll ever make. Retained Earnings (RE) are those net income profit dollar earnings that you decide to reinvest into your dental office by adding another operatory, laser, CAD-CAM, CBCT, oral scanner, 3D Printer, continuing education, or marketing campaign, as opposed to taking it out by paying it to yourself in income to reinvest or consume. Would your profit dollar be more likely to turn into two dollars of capital value creation if I deployed it in my dental office, or should I extract it and redeploy it by investing it in another business, real estate, stock or bond? Or, should I just consume the dollar myself with a new house, car, boat, or toy? Obviously the dentist that needs to learn a new technique, and hasn't taken the time and invested the money to learn it, is already paying for it, but eventually you'll want an exit strategy from working with your hands all day to having your money work for you. Debt reduction is always a great idea considering it's guaranteed that the 18% you're paying on your credit card is a sure bet use of your capital because that is certainty as opposed to the inverse of making 18% in a stock is not. But over the long run, having an investment portfolio which you can retire and live off is very likely given a dentists income given a few decades of time with the miracle of compound interest which Einstein called the most powerful force in the universe because not only can money make money, the money that money makes, makes money, so you can do other things with your time than drilling, filling and billing.
Dentists could learn a lot from Pizza Hut. Founded in 1958 by two brothers Frank and Dan Carney who borrowed $600 from their mom. They named it Pizza Hut because their sign only had room for eight letters, whereas dentistry has nine. I want to personal thank Dan Carney with a shout out for making a religion out of availability to the young entrepreneurs, always making himself available to young dreamers like me and my High School buddies listening to all of our ideas, always adding constructive critiques to our business plans. Dan was a firm believer in investing his returns into the business and not the real estate.
Dentists could learn a lot from Sonic Drive-In delivering service with the speed of sound. Founded in 1959 in Stillwater, Oklahoma by Troy Smith based on a new technology speaker box allowing you to stay in your car to order with your food deleted by a carhop. Today Sonic has over 3,494 locations in 46 U.S. states, and is owned by Inspire Brands which also owns Arby's, Buffalo Wild Wings, Jimmy John's, Rusty Taco, Mister Donut, Dunkin' and Baskin-Robbins. The franchise fee for a single SONIC restaurant is $45,000, with a total investment ranging from $1 to $1.75 million not excluding land. To all the Holier than thou Hypocrites, Gallup surveys show over 80% of Americans eat fast food at least once a month. In 1991 Kentucky Fried Chicken shortened its name to KFC because “fried” was a bad word. Sonic, which is America's fourth-biggest chain.
Does your bookkeeper sit next to you providing statistical analysis like NBA Dallas Mavericks owner Mark Cuban pioneered back in the day with coach Rick Carlisle sitting next to Roland Beech–like I've done with Lorie Xelowski since June 28, 1998?
How to buy a dental office with no money down. Back in the day, owners carried risk, but sellers had skin in the game. We didn't have 3rd-party banks financing $1M+ dental practices to broke kids fresh out of dental school, getting their poor parents to co-sign, where if their kid couldn't do the numbers and it went south, then it was an emotional disaster for the whole family. Greed sucks. Find a job as an associate where the owner/mentor Doc knows you want to buy it after an appropriately long courtship period. Have Doc finance it at 10% over seven years so everyone has skin in the game. If they don't want to be on the hook for the whole enchilada, then stand your ground with the seller-Doc that they must at least carry half the risk. Otherwise, the seller doesn't have faith in you like I do! You didn't go to dental school for eight years to be somebody's bitch. Just stop letting fear live rent-free between your ears and invest in yourself! If you work like no one has for a decade, then you can live like no one has for the rest of your life. Same advice for starting a family, I made my four boys in 60 months. So don't overthink it, just get this party started.
Doc, I practiced through the 2008 bankruptcy of Lehman Brothers. I met the financial crisis that led to the Great Recession when investors withdrew a record $196 billion from their money market accounts. 2020, you're no 2008. I've been contacting my friends at Henry Schein and Benco. In 2020 Benco closed fewer accounts due to collections/payment issues than in either 2018 or 2019, in fact in 2020, the number of accounts closed due at Benco according to my buddy Chuck Cohen, the managing director at Benco Dental and the only man in dentistry smart enough to be published in the Harvard Business Review, said their practice retirement sale closure declined more than 20% vs. 2018 or 2019. Halfway through 2021, the numbers indicate that the trends from 2020 are holding steady. Why? The federal programs to support dentists, most notably the PPP - Paycheck Protection Program worked, Benco had fewer collections issues in 2020 vs two prior years. Fears of the pandemic leading to either an exodus of doctors from the profession due to health financial fears or an overall consolidation wave due to DSO acquisitions are overblown, in fact, fewer dentists closed due to retirement/sale/closure than in the two prior years, probably due to a combination of a slowdown in practice acquisitions by larger players during and directly after the shutdown and dentists deciding to remain in practice post-pandemic, possibly because their net worth declined during/after the pandemic.
Who's answering your phone? Funnel-y how most dentists don't track their new patient journey from landing on your website to calling your dental office. On average 100 people have to land on your website for three to call. Three people have to call for your front desk to convert one into a scheduled patient. Three patients have to come in with a cavity for you to convert one into getting treatment. Combine every one of these underperforming aspects of your new patient dental marketing journey and the U.S. Bureau of Labor Statistics still shows an impressive 2020 median annual wage for dentists of $164,010 with the lowest 10% earning less than $79,000 and the highest 10% earning more than $208,000, showing the top 10% netting 2.5 times more than the lowest 10%. This clearly shows hope in the range of possibilities for any individual dentist wondering what's possible. We've talked before how owner dentist net $100K more than non-owners. We know every successful business needs to get really good at one thing explaining why ADA economist Dr. Marko Vujicic shows average 2019 net income for general dentists was $204,710 and for specialist it was $343,410 illuminating the value of specialization. The world learned in 1776 when economist Adam Smith published The Wealth of Nations that specialization leads to an increased production of higher quality work predicting why centuries later an oral surgeon could take out four wizzies faster than I can turn a can of Cheese Whiz into Cheese Was. We know demographics matter and the importance of creating a supply of what people are demanding which is why dentists often move far away from where they were born for a better opportunity. Combine this with living below your means and saving and you have the recipe for early retirement.
When you increase your treatment plan acceptance rate you prevent a small problem cavity today, from turning into a bigger problem root canal or extraction in the future. When you offer same day dentistry patients are very motivated to do it today so they don't have to come back. If the patient fails to schedule and come back your treatment plan acceptance rate goes down and the disease continues on which is not optimum for oral health. The only secret to lower prices is lower cost so to maximize profit make every operatory the same so you can do any procedure, in any room, anytime. When 35% of cost is the dentist, 25% staff, 7-10% lab, 4-6% supplies, you can't afford for your business to slow down or stop because of a constraint from the lower cost rent and facilities of 5-8%. When you have to move a patient from a hygiene room to a treatment room it cost time and money often times causing you to reschedule. Not to mention the front desk can't schedule emergency patients or walk-ins. Extra operatories are not overhead, they are your means of production. When your over head is $1 and you produce and collect $1 then your overhead is 100%. Raise your production to $2 and now it's down to 50%. Increase the number of your dental operatories until you never find yourself waiting for a room. In fact the biggest ground breaking technology in dentistry was the shovel when used to build a new, bigger and better serval office.
Welcome to Our Practice! We realize that when it comes to picking a dentist that you have many choices to choose from. We want to sincerely thank you for coming in today and choosing us to keep you smiling for many years to come. Please feel free to share the enclosed referral cards with your family and friends to bring in on their first visit. Share the care $10.00 gift card. Tell your friends and family about the great care you experienced at Today's Dental and give them this card. When they become patients, you will receive a $10.00 gift card and your referral will receive a new patient gift! The highest compliment comes from our patients when you refer a friend or family member to our office. Please let us know you passed along our card by writing your name below. Two $10.00 gift card limit per family. We look forward to seeing you soon! Today's Dental staff serving Ahwatukee since 1987.
Kudos and praise to all the Dental Public Health (PDH) specialists who were recognized as a speciality in 1950, focusing on improving dental health at the community level rather than the individual level with programs like Community Water Fluoridation, children's dental health programs in schools, setting up coronavirus and HPV vaccination programs, and public health clinics, the PDH work is never completed. With unlimited demand and limited supply, finding ways to increase efficiency is key. A common problem in any healthcare delivery facility is patient cancellations and no shows. If you miss two appointments in a row you should have to pay a non refundable deposit to make another appointment which you lose if you don't show. Vinegar that is free, is sweeter than honey. The proverb not to look a gift horse in the mouth is because the horse's teeth are an indication of the horse's health, but if the horse was a free gift it doesn't matter since it cost you nothing. People always value something more if they paid for it and since oral health diseases are mostly preventable, our patients need to have skin in the game.
When hygienist pre-appoint their own patients to future continuing care they will instantly find out which patients are onboard who isn't . If the patient bought in to do the right oral healthcare thing and schedule their next appointment in advance, you can monitor this vital sign of patient buy in or give a warning sign your back door is open and the patients are going down stream so you can decide if you want to fix the dam or spend the damn marketing dollars to replace them. The hygienist is most responsible for creating this value which is why they have to ask the patient to schedule to come back because when a patient says no they can see exactly when and with who, their hourlong appointment message did not work on in time to adjust w response to this tasks, hence the meaning of the word responseability. The hygienist needs to own it, be measured, and held accountable. How could you expect the front office to be responsible for preappointing the hygienist patients when you obviously can't be responsible for something you don't have the authority to change. Does the front office manager have the authority to trade your hygienist from the Jets for one from Tampa so your team has the right buccaneers to find the treasure? Or does everyone just blame Dr. Ignominy who is the only one with skin in the game.
Perception equals reality despite the world not being flat because trust has more value than logic. The time needed to make a knowledgeable decision reality means that most of us can only master one thing unless you're Torakusu Yamaha who mastered both motorcycles and pianos. Trust is an investment when your infection control builds patient confidence and is being explained by long term staff the patient already knows and trusts providing an economic barrier in the marketing efforts from someone else they don't know. Trustworthy, loyal, helpful, friendly, courteous, kind, obedient, cheerful, thrifty, brave, clean, and reverent has been the Scout Law since 1908 and will help you become more talon-ted and breaking it is ill-eagle.
Profitability begins with the Financial Arrangement and ends with increasing account receivables, sending statements, then resending again with scary ‘Past Due” messages stamped on it with red ink made from a single drop of blood from your CPA, collection agencies, bad debt, negative cash flow, and high overhead. The Financial Arrangement at McDonald's begins with clear prices so you can decide exactly what you want to order, and then you pay in full or you will not get your Happy Meal with McVodka. If Doc Ronald McDonald did give it to you first, and you never did pay for it, assuming they had average dental overhead of two-thirds, then they would have had to buy the all natural ingredients, which I assume was the human hair, from the profit dollars of two previous sales. This is why financial arrangement impacts profitability more than price. If you want to boost profitability i'm lovin' McDonald's order, pay, food. If you prefer lovin' the Profit Hamburgler use Dentistry's order, food, and pray.
If you want to keep your promise you should Underpromise and Overdeliver. The First Law of Customer Service is Satisfaction = Perceptions – Expectations. The Second Law of Customer Service is it's hard to catch up once you are behind! When you over promise and underdeliver you are raising your patient's expectations which is setting up a trap that you could eventually step in. If you under promise to lower their expectations and then over deliver with a fantastic experience you will satisfy your patients by successfully managing their expectations. You should always keep your promise but if in doubt, under promise and over deliver. When a patient breaks their front tooth off and asks you if you can match it, why would you say absolutely! I tell them God made the tooth next to it and you want me to match it?!? I will try my very best, but no one can perfectly match your natural human tooth. Their expectations have been lowered and then they are delighted when they see the final result because I exceeded their lowered expectations. The same with post-operative pain; will I feel any pain afterwards and can I go back to work? I say, “When the anesthetic wares off you're probably going to want to jump off a cliff.” When they come back in, they are all happy saying, “I was fine afterwards. That didn't hurt at all.” Then I tell them they're probably married with children and they're used to pain and suffering, they chuckle and we're all good. At the Fortune 500 level they almost never pick an extrovert salesperson for CEO because that person has spent their entire career over promising and underdelivering and that never works from the top. They always want an introvert because they listen, think, and then methodically set out with a doable plan.