Business Basics for Dentists (eBook)

James L. Harrison, David O. Willis, Charles K. Thieman (Autoren)

eBook Download: EPUB

2023 | 2. Auflage
480 Seiten
Wiley-Blackwell (Verlag)
978-1-119-89287-8 (ISBN)

Infos

Business Basics for Dentists

Concise yet comprehensive overview of business management principles tailored for dental practices, with strategies to apply the core concepts to achieve success

Rather than presenting a rote checklist of steps for success, Business Basics for Dentists, Second Edition describes business, economic, marketing, and management principles and explains how to apply them to dental practice. Now fully updated throughout, this book provides the essential elements of a business course-management principles, economics, business finance, and financial analysis-without getting bogged down in too much detail. Dental students and new practitioners will learn how to use the core strategic and operational business philosophies to develop an effective dental practice.

The business management principles are related to various aspects of running and managing a dental practice, including office communications, billing, inventory, and marketing. All aspects of practice transition are approached, including career opportunities, buying a practice, starting a new practice, multi-practitioner arrangements, practice valuation, and planning and developing a practice. The book also covers personal financial planning to ensure that the dentist is also planning for their finances and retirement beyond the bounds of the practice.

Business Basics for Dentists, Second Edition covers:

• Personal money management and insurance needs, reducing the personal tax burden, estate planning, and securing financing
• Business entities, basic economics, the legal environment of the dental practice, financial statements, and business taxes and tax planning
• Management principles, planning the dental practice, financial analysis, and control in the dental office, maintaining production and collections, and gaining case acceptance
• Generating patients for the practice, controlling costs, promoting staff effectiveness, and maintaining daily operations

Focusing on the transition period from a dental student, through corporate employee, to ownership, Business Basics for Dentists is a valuable tool for dental students and professionals seeking to further their career path through actionable advice from experts in the field.

The authors

James L. Harrison is an Associate Professor in the Department of Comprehensive Dentistry at the University of Louisville School of Dentistry in Louisville, Kentucky, USA.

David O. Willis is a retired Professor at the University of Louisville School of Dentistry in Louisville, Kentucky, USA.

Charles K. Thieman is a healthcare consultant in Louisville, Kentucky, USA.

Inhalt

Preface vii

SECTION 1 CAREER PLANNING

Introduction 1

1 Career Planning 3

2 Employment Opportunities 11

3 Practice Ownership 31

4 Practice Transitions 41

5 Valuing Practices 59

6 Securing Financing 67

SECTION 2 PERSONAL FINANCIAL MANAGEMENT

Introduction 77

7 Personal Money Management 79

8 Personal Insurance Needs 95

9 Retirement Planning 113

10 Personal Taxes 129

11 Estate Planning 139

SECTION 3 BUSINESS FOUNDATIONS

Introduction 145

12 Basic Economics 147

13 Business Entities 161

14 The Legal Environment of the Dental Practice 171

15 Financial Statements 185

16 Basics of Business Finance 195

17 Business Taxes and Tax Planning 211

18 Management Principles 223

19 Planning the Dental Practice 229

SECTION 4 DENTAL OFFICE SUCCESS FACTORS

Introduction 239

20 Financial Analysis and Control in the Dental Office 243

21 Maintaining Production 257

Part 1: Duty Delegation 257

Part 2: Scheduling Patients 265

Part 3: Dental Fee Policy 275

22 Maintaining Collections 283

Part 1: Patient Financial Policies 283

Part 2: Office Collection Policies 290

23 Generating Patients for the Practice 297

Part 1: Generating New Patients 297

Part 2: Managing Continuing Care 309

24 Gaining Case Acceptance 315

Part 1: Communication in the Office 315

Part 2: Case Presentation and Acceptance 324

25 Controlling Costs in the Practice 329

26 Promoting Staff Effectiveness 337

Part 1: Selecting and Hiring Employees 337

Part 2: Compensating Employees 346

Part 3: Motivating Employees to Perform Well 355

Part 4: Assessing Employee Performance 362

27 Maintaining Daily Operations 369

Part 1: Office Operations 369

Part 2: Office Accounting Systems 373

Part 3: Instrument Management Procedures 388

Part 4: Office Supply and Lab Management 394

Part 5: Dental Insurance Management 397

28 Managing Risk in the Office 417

Part 1: Office Risk Management 417

Part 2: Regulatory Compliance 435

Part 3: Quality Assurance 445

Index 453

Textauszug

CHAPTER 1
Career Planning

Don't confuse having a career with having a life.

Hillary Clinton

GOAL

This chapter aims to describe specific career planning decision points and processes.

LEARNING OBJECTIVES

After the completion of this chapter, the student will be able to:

• Describe the characteristics of dental practice as a career.
• Define professional options available to the new dental graduate.
• Describe career choice points that affect the career path.
• Describe personal and professional factors that affect the location decision.

KEY TERMS

• career decision points
• career path

Dentists have many professional options to use their skills and training. Some involve ownership, while others are employee situations. In this book, we only discuss practice‐related options. The opportunities include:

• Employment
  • Private sector
    • Private associateship (non‐owner)
    • Corporate employee (non‐owner)
    • Industrial research
    • Corporate support
  • Public sector
    • Military/Veterans Affairs
    • Public health patient care settings
    • Dental education
• Ownership
  • Private solo practice (owner)
  • Private group practice (owner)

CHARACTERISTICS OF DENTAL PRACTICES

Dental practices are unlike many other service businesses. Most dentists are still in individual practices, with few colleagues with whom to confer. They must personally deliver the service, which involves hard physical work. They cannot delegate most procedures and must be personally present for the procedures that they do delegate. This means there is little managerial leverage, so the dentist cannot play golf while the office operates. There is no managerial progress. Someone cannot work their way up the management line to become a regional manager or vice president. Most new graduates come to the workplace with high educational debt and must include that in their practice debt finance plan. Dentists' earnings typically peak at 45–50 years of age. After that, the physical nature of the work causes them to decrease the number of patient visits. Often dentists then look to add associates or plan to sell their practices. The question is whether to sell at the peak of the income‐generating potential (and therefore at the highest price) or to “milk the cow” and take income from the practice as they continue to slow down.

COMMON MYTHS ABOUT DENTISTRY

There are several misconceptions about dentistry that will influence career choices.

DENTISTRY IS EASY MONEY

Many people outside the profession view dentistry as an easy way to make a lot of money. Although dentistry is still one of the more lucrative professions, those in the profession know it is not easy to make money. Dentistry is physically demanding work. Dentists often work long hours in contorted positions to make patients comfortable. Back and neck problems, repetitive motion injuries, and eye strain are common problems of seasoned dental practitioners. Dentistry is also emotionally demanding work. Many patients fear dental procedures or have unrealistic expectations about their desired outcomes. Staff members may have personal problems or interpersonal disagreements that affect the work environment.

A DENTIST MAKES MORE MONEY OWNING A PRACTICE

Dentists might make more money if they own their practice. Practice ownership requires knowledge, skills, and abilities that not all dentists have. Additionally, owner–dentists need to spend time and emotional energy to operate the business side of effective practice. Not all dentists want to do this. Some are excellent clinicians but do not want the extra problems of ownership. They want to treat patients, not worry if the hygienist and assistant have interpersonal problems or fret about the changes in a local employer's dental insurance plan. These dentists are best off working for someone else, letting the owners worry about the management of the practice. They can make more money treating patients if they work with someone good at managing a practice or a network of practices. Someone who is excellent clinically, behaviorally, and managerially and loves all aspects of running a practice can make more money owning it.

BIGGER IS BETTER

Many dentists believe that a bigger practice is better. Personal wants, needs, and desires might lead someone to a smaller, more personal practice better suited to their temperament. A larger practice is not necessarily a more lucrative practice. Profits come from using the practice's resources to the maximum amount possible, regardless of size. A small practice can be as profitable as a large one. However, an extensive, well‐run practice does have some advantages if the owner has the managerial expertise to make this larger and more complex business entity use all its resources effectively. A larger practice might show a higher profit if well run. A bigger practice may weather economic downturns more easily. When sold, larger, more profitable practices bring a higher price, although sometimes finding a buyer for these large practices is difficult.

STUDENT DEBT MAKES IT IMPOSSIBLE FOR A DENTIST TO BORROW MONEY TO BUY A PRACTICE

Dental graduates are carrying higher levels of student debt than before. Changes in the student loan programs have made it more difficult to consolidate these loans at low interest rates. Tax law changes have limited the amount of student loan interest graduates can deduct. Nevertheless, dentistry is still one of the higher‐income professions. Banks and other lenders who make start‐up and buy‐out loans to dentists understand these problems. They will work with dentists to develop loan packages if the practice can support the cash flow needed to pay all expenses, including student loans. Not all practices will be profitable enough at a price that can support the cash flow required to make all the payments, however. This can result from the practice price being set too high, high overhead in practice, or the financial characteristics of the potential buyer. A graduate who does not have a high loan burden or who has a spouse who earns a significant income may show cash‐flow needs that are much lower. This dentist may qualify to borrow for a practice purchase when someone else would not.

PUBLIC HEALTH IS FOR DENTISTS WHO CANNOT MAKE IT IN PRIVATE PRACTICE

It has become part of the professional culture that “good” dentistry is exquisitely done (expensive) reconstructive dentistry. True, dentists in the public care sector may not do much complex reconstructive dentistry because the organization's purpose is to provide more basic services to a larger clientele. This does not make dentistry or the dentist's application of their hard‐earned skills of less quality or less critical. The public sector provides valuable services to a large segment of the population. Many dentists find satisfying and rewarding careers by devoting their skills to this style of practice.

A DENTIST DOES NOT HAVE TO TAKE INSURANCE PLANS IN PRACTICE

If a dentist is in a private ownership position, they make all the management decisions. Long‐term, insurance‐free practice is the goal of many practitioners. However, most do not get there. It takes a combination of location, clientele, management, clinical expertise, and time to develop a practice that does not participate in dental insurance plans. Someone may take plans in the short term with the aim to wean off them as they build a private clientele. As the economic environment and insurance industry change, more practices find the need to participate in insurance plans.

A DENTIST WILL BE IN THE SAME OFFICE THEIR ENTIRE CAREER

This used to be more accurate than it is today. In the past, the graduate would open or buy a practice and then build it over the years, and they would be in an ownership position immediately after graduation. New graduates today may work in several professional situations before arriving at their final practice setting. With the increasing number of employment opportunities, many dentists never reach an ownership situation, choosing to do clinical work in non‐ownership positions for their entire careers. The old notion that private practice is the only good form of dentistry is dying out.

CAREER PATHS

Dentists now talk about career paths in which they have an ultimate, long‐term goal but may take several steps to reach it. Short‐term goals then support long‐term goals. Each step in the short term should support the long‐term intention. For example, the traditional path would be to finish dental school, go directly into a pediatric dentistry residency, and then open a practice. A new graduate who has high student debt may take a different career path. In this path, someone may graduate and join a public health practice that offers loan forgiveness. They can build speed and confidence while working with young patients in the clinical setting. They then attend residency and join a group pedodontic practice. Career paths are different for everyone depending on their circumstance. Graduates with an immediate family member who has a career in dentistry or other healthcare...

Produkt-Details

• Erscheint lt. Verlag: 21.9.2023
• Sprache: englisch
• Themenwelt: Medizin / Pharmazie ► Gesundheitsfachberufe
• Themenwelt: Medizin / Pharmazie ► Medizinische Fachgebiete
• Themenwelt: Medizin / Pharmazie ► Zahnmedizin
• Schlagworte: Berufspraxis i. d. Zahnmedizin • Business & Management • Dental Professional Practice • dentistry • Wirtschaft u. Management • Zahnheilkunde • Zahnmedizin
• ISBN-10: 1-119-89287-2 / 1119892872
• ISBN-13: 978-1-119-89287-8 / 9781119892878