In last month’s issue, I introduced a new service provided by Software of Excellence called THRIVE. The service is aimed at improving the management of practices by helping them get the most out of the data they have at their disposal (in the EXACT practice management software). In this article I will describe exactly how the service works, and the stages of the process a practice will go through on their THRIVE journey.
The service is offered by Software of Excellence, but it is Henry Schein Minerva consultants that are the expert analysts involved. The first thing they will do is analyse the data stored on the practice’s management system (the service is currently only available for practices with the EXACT system from Software of Excellence). When looking at the data the THRIVE team will be searching for Key Performance Indicators, which tell them where the practice strength lies, and where improvements can be made. There are 10 KPIs:
1. Chair time utilisation. This shows the hours that are booked to be used, and equally how much potential earning time is being wasted.
2. The failure to attend rate. There is a massive sense of frustration at the time and money lost by a practice thanks to patients just failing to turn up. Would something as simple as a new patient reminder technique be all that’s needed to make an impact?
3. The top 10 invoiced treatments. Do you as a dentist know what is the most invoiced treatment by your practice? It may not be what you think. In understanding what treatments the practice does most, you are in the best position to consider the prices charged for each procedure. Sometimes even small changes can have a big impact on revenue.
4. Referral sources will also be considered. How effective is the practice at gaining, and retaining patients? Every practice should have a website and it should be both informative and functional. Is the advertising of the practice effective?
5. Gross earnings per hour is another important factor worth considering in the successful working of a practice. This can be broken down to each practitioner, so you can be made fully aware how all the members of your clinical team are performing.
6. Forward cover on appointment book. Ideally there would be no cancellations, but in the real world some will always occur. If a practice leaves this time blank then it is time wasted. If a system is in place to respond to the cancellation the time can still be utilised for the benefit of the practice.
7. New patient/existing patient mix. For any practice getting the balance right between dealing with existing patients, and extending your patient list with new customers is important.
8. Recall effectiveness is the backbone of any successful practice. The THRIVE experts will identify just how successful your practice is at recalling patients (this can be broken down to each associate’s success rate too).
9. Payment plans are another area that can make or break a dental practice. Once a practice knows the true value of each plan to the practice, and how much is made per patient, it is easier to try and find ways of increasing that figure.
10. Patient debt is the final key performance indicator used. Patient debt is a fact of life in a dental practice, but by being in charge of the figures you can learn how to manage it effectively.
Setting goals
When reading through the list, no doubt you can recognise at least one or two areas where your practice could improve. Often a principal or practice manager will know certain things need to change, but will not be sure how to go about doing so effectively. This is perhaps the most important part of the service. The data itself is already at the disposal of the practice; THRIVE actually puts it to use. After analysing the data through the KPIs the Henry Schein Minerva team goes on to setting practical goals.
Goals and targets are a good tool to use, but it is important they are realistic and achievable or they can become simply pipe dreams. Dreaming of a ‘perfect’ practice is pointless if you have no idea how to achieve it. But by working practically towards achievable targets you can turn a business around. The THRIVE team can show you the data, and explain what it suggests to them (using easy to understand graphical reports), and exactly what can be changed and improved for you.
It has to be stressed that the consultation is in no way dictatorial; THRIVE is about collaboration with a practice, not a judgement of it. The goal setting is something done by the practice and the THRIVE experts together. The meeting is followed up by a written action plan which identifies the areas of concern, and lays out the key recommendations and priorities of a six month business optimisation programme.
Making targets
The THRIVE service is not a magic spell; it is not something a practice can just purchase and then expect things to turn around automatically. When someone signs up for THRIVE they are making a six month commitment to the service, and to the practice.
By the same token the THRIVE team will not just give you advice and run, it will be with you through the whole process and work hard to ensure your team has all it needs to actually accomplish the goals set to it. There are a series of webinars that are easily accessible for the practice staff, along with a number of workbooks that are available to help educate and train the team with the aim of improving the business management of the practice.
Progress will be closely monitored and discussed through one-on-one consultations throughout the six months. These will help you keep track of where you are in regard to the goals set, and ensure you are on target.
When the six months are up every practice should be able to see a marked difference in their performance. The business will be in a better position and also have the skills to sustain the improvement and further enhance their profitability. THRIVE users are not tied long-term to the service, but can choose to extend its term and keep it running.