Knowing key industry metrics and how to evaluate your practice’s data is essential to driving your strategy and achieving your operational and financial goals. One size does not fit all when it comes to setting dental service fees and compensation rates – there are many important factors to be considered. That’s why Baker Tilly conducts a fees and compensation survey each year with dental practices across Wisconsin and Minnesota. This practice management tool is designed to help you benchmark against other practices in your area, identify areas of improvement and make adjustments to increase profitability.
In addition to properly setting fees, other items that impact practice revenue and profitability are the procedure mix, accurate billing, case acceptance and new patient recruitment. After the decision to change fees, dental practices should recalculate practice collections using the same procedure mix as the prior year and set a budget accordingly. Fee increases and accurate billing for procedures have a 100 percent profit margin – there is no change in expenses for the practice.
For help in determining which benchmarks are appropriate for you, or to learn how Baker Tilly specialists can help, contact our team.