Where are you now? Where would you like to be?

For doctors to make the best business decisions, they must be in possession of accurate business data about their practices.

The most effective method for doctors to acquire the correct information about their practices is through a performance analysis.

During the last five years, 75 percent of orthodontic practices have suffered production declines, according to the Levin Group Data Center. Today, as more ortho practices struggle to gain new patients, the business of orthodontics has taken on far greater importance than in the past.

Prior to the great recession, nearly all ortho practices grew steadily year to year. There was an abundance of patients, and competition wasn’t as fierce. Success came naturally.

Since then, the economic landscape has changed. To operate a financially successful practice, orthodontists need a higher level of business knowledge and skill than in the past. The best source for gaining such knowledge is the prudent use of outside business experts.

Just as parents and patients rely on an expert (i.e. the orthodontist) for diagnosing orthodontic problems, doctors should do the same when it comes to the business side of their practices. An accurate diagnosis — both in orthodontics and business — is the first step to designing an appropriate treatment plan.

One option that many orthodontists have turned to is Levin Group’s “Practice Performance Analysis.”

This evaluation is conducted by a certified practice analyst, who observes the practice first-hand, reviewing critical practice data, interviewing the doctor and key staff members and, ultimately, uncovering the root causes of production declines and poor performance.

When you look at your practice today, what do you see? Levin Group’s certified practice analysts — who are highly trained and experienced in evaluating ortho practices — are adept at zeroing in on key performance figures. What they see for nearly every practice is the potential to increase production significantly.

Equally important, our expert analysts pinpoint exactly why that potential has not yet been actualized by the practice. Every practice is analyzed against the “9 Areas of Expertise,” which are critical to ortho practice success in the new dental economy. These are:

• Production
• Collections
• Team building
• Scripting
• Case acceptance
• New patient experience
• Treatment coordinator
• Scheduling
• Marketing

In addition, the evaluation includes a SWOT analysis, which defines strengths, weaknesses, opportunities and threats. Widely used by companies of all types, this powerful analytical tool provides an excellent picture of a practice’s status, broken down into these four categories:

• Strengths — Positive factors inside the practice, e.g., well-liked staff, superior technology, strong referral network.
• Weaknesses — Areas that need to be improved in the practice, such as chaotic schedule, excessive overdue debonds, unattractive office décor.
• Opportunities — External situations that the practice can take advantage of, like office space available in an excellent location, new potential referral sources, specialized training.
• Threats — Conditions in the market that are or could be hurting the practice’s business, e.g., new practice opening down the street, fewer referrals from GPs, etc.

Orthodontists typically don’t have key advisors to talk to and work with who understand ortho practices and the business of orthodontics in great depth. Having a business expert in your corner can help you break out of a production slump and start the process of growing your ortho practice once again.

Note: This article was published in Ortho Tribune U.S. Edition, Vol. 9, No. 3, PCSO Edition.