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CDS Member News and ArticlesProfessional News Articles : : ON PRACTICE MANAGEMENT by Janyce Hamilton : Best lessons for 2010 finances Best lessons for 2010 financesJanuary 5, 2010 After the economy “fell off a cliff” in the winter of 2008, the succeeding 12 months shakily unfolded; 2009 is remembered as the worst year in the decade for the American stock market. It wasn’t all doom and gloom, however. Americans finally learned how to save on expenses: they stopped spending. Any silver lining on this Grimm’s Fairy Tale is that dentists took note of the situation and made adjustments. After being winded by the economic flux, they are adjusting their fiscal sails. Ruth Schultz, Manager of Public Services at the American Dental Association’s Department of Library Services, was contacted for this column. Ms. Schultz identified a series of articles and reports issued over the year that helped dentists reduce expenses or delay plans and purchases. Below is a roundup — the best advice of 2009 — gleaned from publications and from organized dentistry. If you missed these reports, member dentists can order the full-length articles from the ADA Library as a benefit of their memberships. Without further ado, by month of publication, here is a list of reports that may help make for a happy 2010 in your office. February. George Vaill, a dental office lease negotiation specialist in Winchester, MA, wrote about “Asking for Rent Relief: Is This a Good Time?” in The Profitable Dentist. Dentists don’t give patients a price reduction due to the recession, and most landlords won’t cut property renters a deal either, Vaill said. But if you are going to ask the landlord for a reduction, he or she may respond if feeling threatened by the possibility that you will vacate the property if you don’t get a rent reduction. Vaill said dentists might consider asking for a temporary rent reduction, such as for one year, in exchange for deferred rent payment with interest. April. Staying open late or weekends is key to maximizing overhead utilization, according to dentist Fred Greenblatt, author of “Maximizing Your Facility” in Dental Economics. To do help this, he suggested adding a dentist to your practice. May. Ever consider using ceramic or glass cups over Styrofoam and paper cups in the office? Authors Fred Pockrass, a dentist, and Ina Pockrass, an attorney, in Berkeley, CA, say this can save about $350 per year in their article, “Reducing Waste and Pollution,” in the Access journal. The Pockrasses also advised dentists to e-mail patients the Web addresses for articles and with the practice’s monthly newsletter. E-mailing saves on paper, color printing costs and postage. July. Locking in a longer term (5-10 year) lease may convince landlords to “provide greater concessions” according to “Timing Right to Maximize Savings on Office Space Lease,” a report in The McGill Advisory. August. The 4th ADA Survey of Economic Confidence reported that compared with the first quarter of 2009, in the second quarter some practices increased hours of operation per day, but decreased their total days of practice per week, wrote author Arlene Furlong in “Dentists Work on Reducing Costs” in the ADA News. September. The ADA’s Survey Center confirmed that the economy sputtered out, so to speak, for dentists in fourth quarter 2008, compared with third quarter, according to dentist Roger Levin. The article was entitled, “A Strategic Approach in Overhead Control,” in The Journal of the American Dental Association. Dr. Levin advised questioning each and every expense, asking if it can be reduced (temporarily or permanently) and not affect patient care and if it is necessary at all. In another report entitled “41 Strategies Doctors Are Using to Cut Personal Spending By Thousands Monthly,” in The McGill Advisory, 16 percent of doctors tracked personal expenditures in 2008. By the fall of 2009, the article surmised this number was likely much higher, as 80 percent of doctors reported not saving enough for retirement — a high percentage for doctors. One money-saving tip in the article: “Ask for a lower price (from all).” October. Dental offices may be unknowingly generating excessive activities or having extraordinary inventory. This waste can, on average, be reduced by 40-70 percent, according to author Paul Blossom in “Tough Recession? You Need a Lean Practice!” in The Journal of the Michigan Dental Association. Dr. Blossom recommended dentists analyze to recognize waste in the areas of treatment defects, overproduction, patient/staff waiting, movement, inappropriate processing, inventory and lack of employee involvement. November. An ADA News report, “Dentists Cut Expenses, Delay Plans, Purchases” described an economic patient mindset of “survival mode.” Author Arlene Furlong quoted a practice management consultant who advised dentists to be careful not to push patients, as survival mode is “ more ‘about me and less and less about you.’ ” Furlong directed readers to the ADA’s online resource, the Dental Practice Hub, for money-saving and building ideas at www.dentalpracticehub.ada.org. December. If there are only two days’ worth of appointments, bunch them into two days; only offer appointments on the other days of the week when the two days are filled. On the days not filled, the dental staff doesn’t need to come in to the office, according to accountant Thomas Pesch in “The New Up: Get Ready for the Next Market Shift” in Northwest Dentistry. Elsewhere, The Journal of the Michigan Dental Association published an article entitled “Mandatory Employee Furloughs” by attorney Dan Schulte. Mr. Schulte advised dentists that they can, under the Federal Fair Labor Standards Act, give hourly employees mandatory furloughs. Salaried employees can have their contracts amended to give employers the right to reduce working hours, he reported. Incomes are down but personalities are up. If you stay upbeat in a low-energy economy, it can help you make your practice a lean and mean financial machine. The year past will be remembered by some as The Great Recession. But a year’s worth of insightful dental gatherings and reports can help you enhance your practice.
Janyce Hamilton is an award-winning Chicagoland freelance dental writer and editor. Send suggestions for topics to be covered, or any comments on this column, to review@cds.org. |
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