The Shift Needed for Success in 2021
Unfortunately, though, those consistencies evolved into detrimental trends for dental practices. Often based on decisions that focused only on the crisis at hand, these trends resulted in poor planning. Ultimately, three concerning situations have surfaced—operating in crisis mode, rather than collection mode; replacing profitability with painful, drawn-out processes; and forgoing proper preparation, causing extra work.
Crisis Mode vs. Collection Mode
In one way or another, we’ve all had to operate in crisis or survival mode this year. Health concerns for ourselves or our loved ones, businesses closing, remote working, e-learning … the list goes on. And to get through it, we entered survival mode, a short-term, fear-based mode of thinking based on reactive, rather than proactive, measures. While survival mode is a valuable temporary coping mechanism, it is not sustainable. With a focus on short-term reactions, we lack the time and bandwidth to examine long-term opportunities and plans, which is how we set ourselves up for success.
Collection mode, on the other hand, is where practices should have been pre-pandemic and where we hope they return as soon as possible. In collection mode, practices are staying prepared and one step ahead of what comes next. They are as current with their collections as feasible so that when something like a global pandemic comes along, they already have the funds that were owed to them in their accounts. This is clearly a far better place to be, especially when they need cash on hand to operate.
Remaining in crisis or survival mode too long is one way to ensure that a practice doesn’t survive at all.
Profitable vs. Painful
We understand—we all want to save money. This year especially, we all need to save money. However, where and how we do so are critical distinctions. If practices try to cut corners and save money in the wrong places, it will cost them much more in a long, painful process, diminishing profitability as it goes along.
For example, cutting back on staff may reduce payroll, but the remaining staff are overworked and overwhelmed. It’s inevitable that important tasks, such as claims and billing, then fall through the cracks. While claims may have been sent out, there may have been little to no follow-up on getting paid. There have been examples of practices that had $60,000 in 90+ day receivables one month but chose not to pay for help to clear it up. Within three months, that $60,000 turned into over $200,000 in receivables.
Pre-work vs. Re-work
As with much in life, there are no short cuts when it comes to operating a successful dental practice. Often, while the correct way to accomplish tasks may be longer and harder, it is the best way to ensure the desired outcome. However, operating in crisis mode often equates to short-cuts that end up costing more time and money in the long run.
For example, under a normal routine, when a patient comes in for a service, a staff member would call the insurance company to request a breakdown of benefits. They need to know the particulars—what two services cannot be performed at the same time, how long of a period must lapse after one procedure before another can be performed, and countless other insurance-related nuances. But this all takes time. And the last thing many practices wanted to do this year was to pay employees to sit on the phone with insurance companies for hours on end.
Instead, and maybe because they were short-staffed, the employee didn’t call and instead relied on an old breakdown of insurance, with incorrect information. When it was time to bill, the insurance company didn’t pay and neither did the patient, who thought it was covered because the practice didn’t tell them otherwise. This type of situation creates much more work in the end, and will likely result in not being paid for a service performed simply because the pre-work was not done correctly.
It’s simple. Putting in the steps and the preparation, or as we like to call it, the “pre-work,” is the best way to avoid the “re-work” later!
It’s Time to Change the Trends for the Positive
We’ve survived 2020, and however we did it, it’s time to move on. But we must now make a shift. Every practice should take some time over the coming weeks to create a plan that will set them up for success in 2021 and beyond.
We all need to see far more preparations, profits, and successes in the new year. And, as always, Signature Dental Management Company will be with you every step of the way. Next month, we’ll go through the specific tips to assist you with the implementation of your new plan.
Until next time, we wish you a safe, healthy, and happy New Year filled with new trends … and much success!