Proof of an economic recession is evident. Equally so, evidence points to the need to have a plan to recession proof your dental practice.
For our purposes it’s as much about financial strategies as it is about operational strategies. It’s primarily how you manage your dental practice workflows to achieve the best and most financially effective ROI (Return on Investment).
Is the “sky (really) falling…!?”
The answer to that question has much to do with how prepared you are for the recession that’s brewing. Sure, this time last year who would have predicted the pandemic era we’re living in?
But now that you’re in it…prioritizing your next steps is critical to keeping your dental practice afloat financially.
”A survey by Bankrate found that two out of five Americans (40%) are not prepared for the next recession. Now is the time to create a dental practice that is recession-proof.
And adding to the urgency…
Due to the recent events surrounding COVID-19, I think it is appropriate for dentists to evaluate their practices and learn how to prepare for a recession now before it is too late.”
Think about a recession as an economic pause that impacts the production of goods and services for a minimum of six months. And even though recessions occur and disappear it’s essential that you, as a dentist, have a strategy for how you’ll thrive during and after one.
Cash-flow or cash-no?
As you know, dentistry relies on production. And as the schedule goes so goes production.
Behind that formula of sorts is a cash-flow reality that requires consistent awareness. Cash flow equates to the timing related to the coming and going of money into your bank account.
No doubt, account receivables and insurance claims reimbursements make up a high percentage of your dental practice’s cash flow percentages.
Your schedule and what it reveals about production makes managing all aspects of that platform all the more vital for recession proofing your dental practice.
Streamlining and refining your workflows is an essential strategy for how to recession proof your dental practice
Think of your dental practice workflows as a cash-flow asset. It relies on improving the efficiencies of your team so that you can schedule more dentistry thereby increasing production.
Workflow + Production = cash flow = recession proofing your dental practice!!
If you were to evaluate your workflows you might discover some technology bottlenecks. Those flow-stoppages could be traceable to a variety of things.
- Antiquated or outdated dental practice management software and technology
- Tethered, desktop systems
- Low-tech, paper-intensive protocols for managing patient information, payments, accounts receivables, patient follow-up, etc.
These and more stop or delay workflows that in turn can potentially have a negative impact cash flow.
An essential piece of recession proofing your dental practice starts with an inventory of your systems and platforms that enable you to produce a higher volume of dentistry.
Maximize technology and software platforms
An outdated server-based system is often tethered in a few costly