Minimizing the effects of inflation on your practice
With the upheaval of the pandemic now largely in the rearview mirror, dental practice owners have a new challenge to deal with–higher than average inflation. Here are some tips for navigating this tricky economic situation.
Increase production to offset the cost of staffing
The labor supply is tight across all healthcare industries, including dentistry. This means the salaries required to attract or retain talent have likely gone up, in many cases at a rate greater than inflation. Trying to manage with fewer or subpar staff is unlikely to be a winning strategy. Look for ways to boost production to increase revenue instead.
Invest in new technology
It may seem counterintuitive to spend money at a time when you’re looking to save money but increasing efficiency can both save you money and keep things running smoothly with fewer staff in your office.
Audit your overhead
Go through your overhead costs and look for ways to trim. From motion-activated lights in the supply room to allocating more time to shop around for better deals on dental supplies, actions that weren’t worth the effort in the past can add up during periods of rapid price increases.
Take action on no-shows
Now more than ever, you can’t afford to have an empty chair during peak hours. You may want to consider a stronger no-show policy than in the past.
Enact a reasonable approach to raising fees
Raising fees is tricky in any economy but inflation makes the situation even trickier as patients are being hit by rising prices across the board. You don’t want to discourage patients from scheduling appointments and treatment, but as operational costs rise, a reasonable increase in your prices may be necessary.