HOW TO FILL “HOLES” IN THE APPOINTMENT BOOK FOR A VETERINARIAN

Here is a list of “places to go” when confronted with holes in the schedule.  This can be used as a checklist when trying to fill the appointment book.

1. If you have e-mail where clients can ask for appointments, such as with Demand Force or Vet Street, check your e-mail.

2. Maintain – and check – your “short call list”.

3. Maintain – and check – a “missed appointment list”:  listing any client who has missed an appointment who has not yet rescheduled.

4. For recall clients, look at the “overdue recall list”.

5. To fill grooming, wellness and geriatric appointments, check on patients coming in for the exams who might be overdue.

6. Check for patients that could take advantage of specials you are offering. Call them to let them know about the special.

7. Look at later days for any treatment that could be brought forward.

8. “Incomplete treatment list”.

9. Reactivation list.

10. If you offer any type of pet insurance program or payment wellness program, toward the end of the year, call patients with unused benefits.

HOW TO FILL “HOLES” IN THE APPOINTMENT BOOK FOR A DENTIST

Here is a list of “places to go” when confronted with holes in the schedule.  This can be used as a checklist when trying to fill the appointment book.

1. If you have e-mail where patients can ask for appointments, such as with Demand Force or Lighthouse, check your e-mail.

2. Maintain – and check – your “short call list”.

3. Look for any family members of patients who are already scheduled who are overdue and need to come in.

4. Maintain – and check – a “missed appointment list”:  listing any patient who has missed an appointment who has not yet rescheduled.

5. For hygiene, look at the “overdue recall list”.

6. To fill hygiene appointments, check on patients coming in for restorative who might be overdue for a cleaning.

7. Look at later days for any treatment that could be brought forward.

8. “Incomplete treatment list”.

9. Reactivation list.

10. Toward the end of the year, call patients with unused insurance benefits.

HOW TO FILL “HOLES” IN THE APPOINTMENT BOOK FOR A OPTOMETRIST

Here is a list of “places to go” when confronted with holes in the schedule.  This can be used as a checklist when trying to fill the appointment book.

1. If you have e-mail where patients can ask for appointments, such as with Demand Force, Eyecare Advantage or Vision2020Online check your e-mail.

2. Maintain – and check – your “short call list”.

3. Look for any family members of patients who are already scheduled who are overdue and need to come in.

4. Maintain – and check – a “missed appointment list”:  listing any patient who has missed an appointment who has not yet rescheduled.

5. For regular optical appointments, look at the “overdue recall list”.

6. To fill medical appointments, check on patients coming in for medical exams who might be overdue for a medical eye exam.

7. Look at later days for any treatment that could be brought forward.

8. “Incomplete optical care list”.

9. Reactivation list.

10. Toward the end of the year, call patients with unused insurance benefits.

THE OPTOMETRY OFFICE FINANCIAL “MAKE OR BREAK POINT”

Every practice has a financial make or break point.

This is the point, financially, where you are either making enough money to operate, pay yourself, your employees, all the basic operational cost, continuing education cost, the utilities, etc. Above this point you are making it. Below this point you are breaking it.

As a practice owner it is one of the most important tasks you have to work out what the financial “make/break point” is for the practice.

To do this take the following steps:

1. Take the last 3 months average of spending (include any amounts that are suppose to be covered that may not have been necessarily paid) and determine what your bottom line income needs to be to pay your basic bills (which, includes doctor and staff pay, utilities, bills, etc).

2. Compare this against the suggested ideal financial percentages of an optometry practice and determine where you are overspending.

It is important in managing the finances of your practice to monitor on a regular basis how much you are spending in your various expense categories.  Even more important than watching the gross amount of each cost is keeping an eye on each category as a percent of your collections.  Below are some guidelines to help you evaluate your key expense categories:

            Category                                              Percent of Income       

Cost of Goods Sold                                   27% - 33%

Staff Salaries and Benefits                          18% - 23%

Occupancy Costs                                        4% - 9%

Equipment                                                  3% - 5%

Marketing/Advertising                                2% - 5%

General Office Overhead                            6% - 9%

Doctor’s Compensation                             30% - 35%

These ranges can vary depending on the peculiarities of your practice.  But these are ranges that work for many successful practices.

In evaluating these percentages, you must realize, of course, that the higher the production level of a practice, the lower some of these percentages will go.  A smaller practice will have higher percentages because there is a minimum requirement to these costs just to open your doors.  As the practice expands, these percentages can come down.

Monitoring these costs and percentages on a monthly basis will help you confront and stay in control of your financial planning. 

3. While you work to increase your practice’s income, start planning, using an executive meeting (which I have laid out in a previous blog post), your weekly and monthly spending so that it is kept within your budget and the ideal percentages.

The office manager should be included in the basic financial planning so they understand the financial needs of the practice and can manage the practice with viability in mind.

(Note: If there is a concern on giving to much financial information to someone that is not an owner, they should at least be familiar with the percentages of the practices finances.)

4. Once you have your “make/break point” financial target figured out implement a bonus system (profit sharing, which I have posted about earlier) that awards the staff a certain percentage of the income that is above the “make/break point”. The percentage would be set-a-side and paid out quarterly to help motivate your staff to make your “make/break point” financial targets and would give them great responsibility to increase their own income by increasing the practices income.

Doing the above steps and using the suggested percentages as benchmarks for your practices financial wellbeing will give you much greater control of your finances and assist you achieving financial stability for the practice.

Good luck!

THE DENTAL OFFICE FINANCIAL “MAKE OR BREAK POINT”

Every practice has a financial make or break point.

This is the point, financially, where you are either making enough money to operate, pay yourself, your employees, all the basic operational cost, continuing education cost, the utilities, etc. Above this point you are making it. Below this point you are breaking it.

As a practice owner it is one of the most important tasks you have to work out what the financial “make/break point” is for the practice.

To do this take the following steps:

1. Take the last 3 months average of spending (include any amounts that are suppose to be covered that may not have been necessarily paid) and determine what your bottom line income needs to be to pay your basic bills (which, includes doctor and staff pay, utilities, bills, etc).

2. Compare this against the suggested ideal financial percentages of a dental practice and determine where you are overspending.

It is important in managing the finances of your practice to monitor on a regular basis how much you are spending in your various expense categories.  Even more important than watching the gross amount of each cost is keeping an eye on each category as a percent of your collections.  Below are some guidelines to help you evaluate your key expense categories:

Description	Percentage/Amount	Comments
Salaries (without Hygiene)	18 – 22%
Hygiene	Up to 33%	2.8 to 3.3 times actual payroll expense.  This translates to 30% to 35% of what she produces (billable).
Total Employee Expenses	26 – 31%	This includes salaries, benefits and taxes.
Laboratory	7.5 – 10.5%
Dental Supplies	5 – 7.5%	Use comparative shopping to keep in lower range.
Rent	5% max
Office Supplies	1 – 2%
Utilities	< 1%
Promotion	Up to 5%	This includes your Yellow Pages bill.
Equipment Repairs	< 1%
Continuing Education	3 – 5%	Includes transportation and expenses for doctor and staff.
Accounting	< 1%	Accounting costs depend on how much you have the accountant do.  Use of a bookkeeper and/or accounting software can greatly reduce this cost.
Legal	$400-1,000 a year	The percentage would depend on the income of the practice.
Doctor’s retirement and medical/hospitalization	3%
Staff benefits	3%

In evaluating these percentages, you must realize, of course, that the higher the production level of a practice, the lower some of these percentages will go.  A smaller practice will have higher percentages because there is a minimum requirement to these costs just to open your doors.  As the practice expands, these percentages can come down.

Monitoring these costs and percentages on a monthly basis will help you confront and stay in control of your financial planning. 

3. While you work to increase your practice’s income, start planning, using an executive meeting (which I have laid out in a previous blog post), your weekly and monthly spending so that it is kept within your budget and the ideal percentages.

The office manager should be included in the basic financial planning so they understand the financial needs of the practice and can manage the practice with viability in mind.

(Note: If there is a concern on giving to much financial information to someone that is not an owner, they should at least be familiar with the percentages of the practices finances.)

4. Once you have your “make/break point” financial target figured out implement a bonus system (profit sharing, which I have posted about earlier) that awards the staff a certain percentage of the income that is above the “make/break point”. The percentage would be set-a-side and paid out quarterly to help motivate your staff to make your “make/break point” financial targets and would give them great responsibility to increase their own income by increasing the practices income.

Doing the above steps and using the suggested percentages as benchmarks for your practices financial wellbeing will give you much greater control of your finances and assist you achieving financial stability for the practice.

Good luck!

THE FINANCIAL "MAKE OR BREAK POINT" OF A VETERINARY PRACTICE

Every veterinary hospital has a financial make or break point.

This is the point, financially, where you are either making enough money to operate, pay yourself, your employees, all the basic operational cost, continuing education cost, and the utilities. Above this point you are making it. Below this point you are breaking it.

As a hospital owner it is one of the most important tasks you have to work out what the financial “make/break point” is for the hospital.

To do this take the following steps:

1. Take the last 3 months average of spending (include any amounts that are suppose to be covered that may not have been necessarily paid) and determine what your bottom line income needs to be to pay your basic bills (which, includes doctor and staff pay, utilities, bills, etc).

2. Compare this against the suggested ideal financial percentages of a veterinary hospital and determine where you are overspending.

It is important in managing the finances of your hospital to monitor on a regular basis how much you are spending in your various expense categories.  Even more important than watching the gross amount of each cost is keeping an eye on each category as a percent of your collections.  Below is a list of the main expense categories in a veterinary hospital and percentage ranges to provide some guidelines to help you evaluate your key expense categories:

Description	Percentage/Amount	Comments
Staff compensation	15-18%%	Excluding benefits and taxes.
Associate Salary	18-22 % of what he/she produces.	If you are paying medical insurance, malpractice and CE, then the percentage comes down.
Drugs and Professional Supplies	17-20%	Use comparative shopping to keep in lower range.
Laboratory	5%	Inhse 2.5 / outsourced 2.5
Office Supplies	1 – 2%
Rent	5-10 %
Utilities	1%
Promotion	2%	This includes your Yellow Pages bill.
Maintenance	1%	Includes any bld’g repairs
Continuing Education	2– 4%	Includes transportation and expenses for doctor and staff.
Accounting	< 1%	Accounting costs depend on how much you have the accountant do.  Use of a bookkeeper and/or accounting software helps keep this cost low.
Legal	$400-1,000 a year	The percentage would depend on the income of the hospital.
Doctor’s retirement and medical/hospitalization	3%

Heartworm Expense                 3.5% (minimum)

Flea/Tick                                  3.5% (minimum)

Pet Food                                  70% of what sold; at least 3.5% of total expenses or you’re not selling enough.

Medical Supplies, Other           12%

Office Expenses                        3%

In evaluating these percentages, you must realize, of course, that the higher the production level of a hospital, the lower some of these percentages will go.  A smaller hospital will have higher percentages because there is a minimum requirement to these costs just to open your doors.  As the hospital expands, these percentages can come down.

Monitoring these costs and percentages on a monthly basis will help you confront and stay in control of your financial planning.

3. While you work to increase your practice’s income, start planning, using an executive meeting (which I have laid out in a previous blog post), your weekly and monthly spending so that it is kept within your budget and the ideal percentages.

The office manager should be included so they understand the financial needs of the practice and can manage the practice correctly.

4. Once you have your “make/break point” financial target figured out implement a bonus system (profit sharing, which I have posted about earlier) that awards the staff a certain percentage of the income that is above the “make/break point”. The percentage would be set a side and paid out quarterly to help motivate your staff to make your “make/break point” financial targets and would give them great responsibility to increase their own income by increasing the practices income. 

Doing the above steps and using the suggested percentages as benchmarks for your practices financial health, will give you much greater control of your finances and assist you in achieving financial stability for your hospital.

Good luck!

HOW TO INTEGRATE SOCIAL MEDIA INTO YOUR PRACTICE MARKETING

You have to have a social media marketing program set up that drives interested patients and/or clients to your website and if you have a good website hopefully drives them into action - scheduling an appointment.

To make this possible you should have an internal employee who is internet savvy handle the social media for your practice. They can work on one of the forms of social media daily. This way you don’t have to assign a full time person to your social media marketing. The employee responsible for your social media would make your Facebook (and other forms of social media) entertaining for your clients and useful - not selling your practice, but providing useful information and building a community around your practice's social media and driving in clients on your website. 

Another method is to have each employee participate in some form of social media marketing. Different people are in charge of different platforms -- Twitter, Linkedin, Pinterest, Facebook, Website. Multiple staff members have different tasks they perform to keep your social media fresh and very active. This allows your staff to do their jobs, but also have a very current social media presence while not requiring a full-time social media person.

Clients and patients really enjoy being able to interact with the staff this way and it will act to make your practice very much part of your patients and/or clients lives.

SUCCESSFUL WAY TO HANDLE CANCELLED APPOINTMENTS

I suggest the following steps as a successful method to handle patients or clients that have cancelled a scheduled treatment appointment:

1.      When someone calls to cancel they need to be reminded of the importance of the treatment plan, their specific medical health need and immediately rescheduled.

2.      If they do not reschedule, this indicates that they have some questions or concerns that have not been addressed and which need to be handled.

3.      At this point you, if they don't reschedule, the doctor needs to call them and follow up on why they are not continuing with the treatment plan. The doctor needs to ask them what happened and/or why they are not scheduling. Listen to their answer as there is something that must be handled, such as past experiences that were not good, alarming information they’ve heard about the treatment, financial concerns, etc.

4.      Get the information and handle it by providing the additional information the patient needs so what ever their concern was it has been addressed.

5.      Once they are handled, reiterate the importance of the treatment plan and get them scheduled for the next visit.

These steps have improved patients rescheduling after previously cancelling treatment appointments. 

Holding a Productive Practice Management Meeting

Some weeks back I posted an article on the value of the Office Manager. As part of that article I brought up the subject of scheduling a regular meeting time between the practice Owner and the Office Manager to plan the production and management of the practice. Following is an outline for this meeting:

1.      Review your practice's statistics - compare this week's (or month's) key production numbers (such as Gross Production, Net Production, New Patients, Total Exams, Amount of Treatment Plans Presented Compared to the Total Amount Accepted, etc) to the previous week's or month's numbers to determine if the practice is growing or detracting.

2.      Determine the necessary steps to improve the production of the practice. Write a plan of action (also known as a "battle plan") for implementing the steps you determine necessary to revert any decline and/or create stable growth.

3.      Review any items from the previous meeting that needs to be followed up on, including the previous week’s (or month's) plan of action to determine which targets were completed and any targets that need to be carried over to the new plan of action.

4.      Take up any promotional matters; i.e., review the Promotional Calendar; review the previous month’s New Patient log to see where new patients are coming from; ensure that promotional actions are being planned; and discuss the effectiveness of promo being done. Ensure that you add any promotion action targets to your plan of action for the week.

5.      Take up any financial matters, i.e., any needed or proposed expenditures.  Also review the previous weeks's (month’s) expenses by category and compare to your budget. Determine any necessary actions to curb spending, plan on long term purchases, etc.

6.      Review the Accounts Receivable Aging Report to ensure all aging A/R is being confronted and worked.

7.      Take up any additional personnel matters to ensure these are being handled or are scheduled for handling: 

               a) personnel problems, 

               b) personnel successes, 

               c) needs for training, 

               d) job reviews, 

               e) correction or staff disciplinary actions

8.      Take up any proposed changes in policy or procedure for the practice.

9.      Discuss and decide on your theme or subjects for the next staff meeting and write up an agenda.

Getting the above steps done weekly, will improve the coordination between the Office Manager and Owner and will result in improved management and overall stable growth of the practice.

CREATING A PRODUCTIVE REFERRAL SYSTEM FOR YOUR PRACTICE

Happy clients and word of mouth marketing is one of the most effective methods to fill your practice with new patients. An internal referral campaign to get your existing patients excited about telling their friends and families about your  the way to actively create new patients and is very important and very inexpensive.

This is one of the first things I start when working with a practice:


1. Encouraging referrals – when a new patient calls in, find out who referred them.  This of course is done by the receptionist over the phone.  Make a point to acknowledge the person whom referred the new patient.  For example, if Sally Smith referred the patient, the receptionist would say something such as “My, Sally Smith’s such a nice lady, isn’t she?  It was so kind of her to recommend our services to you!”  This if the first time the new patient hears about referrals.

 

The new patient then comes into the office and fills out a New Patient form on which it has a question, “Who may we thank for referring you?”  This is the second time the new patient’s attention has been directed to the idea of “referrals”.

 

Finally, the Doctor introduces himself to the new patient, looks at the forms, and notes who the patient has been referred by and says, “I see Sally Smith referred you.  We all really enjoy her.”  This is the third time the patient has thought about referrals.  This impresses upon the new patient the fact that referring new people to the practice is very much encouraged and is appreciated.

2. Put a tastefully bold sign you waiting area - "We would like to help as many people as possible with their health needs. Please feel free to tell your family and friends that we are accepting new patients!" or a similar wording.

3. Survey your employees and patients for an award or discount you can give them for getting new patients into the practice (obviously can't violate any local laws on referring patients). This can be a Starbucks card, gas card, or something similar for each new patient gotten from referrals and can increase with the number of referrals a patient or staff member gets.

4. Create simple referral cards with the practice's contact information and stating that your practice is accepting new patients. Offer a special for new patients. Something significant, but not at a loss for the practice.

5. Hand out two (2) referral cards to all patients as they leave. Tell them how many people don't take care of their dental needs and that you want to help provide needed dental care and that you would like them to tell as many of their friends and family as possible about your practice. Let them know what special the new patient will get and what award they get when someone comes in with a referral card.

6. The staff should initial the cards they hand out so they can be awarded too.

7. Also recommend drilling your staff on this so they are comfortable doing it.

I have had real success implementing the above steps in many practices, though I have found that for each practice they have different response times before they start seeing an improvement in new patient numbers, but it does work.