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6 Simple Ways To Increase Dental Practice Cash Flow

While profitability is often used to measure a dental practice's success, it is not the same as cash flow. This is a fact that the business community knows. This is widely known. 8/10 businesses fail because of poor cash management. Ask the dental community and you'll find everything from poor scheduling to lack of trust among patients.

These things are important. They are important. They are important because they have an impact on your cash flow and profitability.

We also cover ways to increase production in " 5 Easy Ways to Keep Patients Coming In Despite Inflation". We will also cover core business processes that impact your cash flow and ultimately your practice's success.

What is Cash Flow?

Cash flow refers to the money that flows into and out of your practice. It includes cash inflows (insurance payments and patient payments), as well as cash outflows. Cash inflows (insurance payments, patient payments, etc.) and cash outflows. Payroll, rent, supplies fees, etc. ).

Let's suppose your practice makes $250,000 annually and your expenses total $125,000. Your practice is profitable and you have $125,000 in revenue at the end of the year. Your practice is generating $30,000 in September and your expenses are $45,000 in September. That month, you're down $10,000. Negative cash flow is a problem. You don't have $10,000 cash reserves. This will make it difficult to pay your bills and make payroll. You might have to close your business, even if you are profitable.

Bookkeepers are likely to track your cash flow. Bookkeepers tend to have a backward-focused view, which means they look at what has already happened. Although they may be able tell you when your bank account is low, it is only after the damage has been done.

The dentist, office manager and other key stakeholders of the practice should be aware about what's in store and the steps they can take to keep your cash flow strong.

However, you shouldn't have any negative cash flow. Sometimes it's normal, especially if you have a growing practice, make large purchases, or experience a seasonal slump. However, it is important to maintain positive cash flow.

How to improve cash flow in dental practice

Let's now look at the basics of improving cash flow in dental practices.

1. Automate

Automation can make your team more efficient and lower labor costs. You can automate confirmations and reminders . This will increase cash inflows through increased production and decrease cash outflows via a reduction of labor. You can find more automation methods in " 6 Easy Dentistry Practice Automation Hacks."

2. You can accelerate your insurance payments

Eight out of ten practices submit claims electronically using the index. This is a positive sign because it can cut down on insurance response times by as much as two weeks or more compared to sending claims via U.S. postal mail.

However, only two out of ten practices send attachments (xrays, images and charting) electronically. This type of documentation is required for high-value procedures like crowns, bridges and implants. Most practices are experiencing a slowdown in their largest insurance payments due to the fact that they use U.S. Mail. Insufficient documentation can also lead to claims being denied. It can take up to a month before money reaches your practice if you work by mail.

To speed up your insurance payments, switch to digital end-to-end insurance processes. This includes:

Verification of eligibility and benefits

Attachments

Claim Submission

Status Inquiries

Payment

Remittance Advice

Electronic insurance processes are a type of automation. This will reduce cash outflows from stamps and labor, as well as accelerate your cash inflows.

3. Speed Up Patient Payments

To speed up dental billing software and improve cash flow, you need to address the specific reasons they aren't paying. We'll provide a brief overview of the most common reasons patients don't pay, as well as what you can do about it.

Why patients don't pay

Couldn’t Afford to Pay (51%)

Althought Covered By Insurance (37%)

Unknown Owed Amount (19%)

Forgot to pay (16%)

Uncertain of due date (13%)

What you can do about it

To confirm coverage, verify eligibility via electronic verification.

Offer in-house discount plans and patient payment programs .

Before you start treatment, give your patients accurate and clear estimates.

When possible, collect at the time of service

You can send a statement electronically to the patient and give online access bill information as soon you know that they have a balance. If you use their preferred method, half of the bill will be paid within an hour!

To make it easier for patients and their families to pay, you can use Pay by-Text or other virtual payment tools.

4. You can increase your rates

A quarter of dentists raised their rates during the pandemic. We haven't seen the same shift in rates due to inflation so far. However, this may be because practices tend not to review their rates annually.

While increasing rates can increase cash flow, it is a double-edged sword. If your rates are higher than average in your area, your loyal customers will stay longer and pay more. However, you could lose new patients or lose existing patients. This strategy can be used with care.

5. Conduct a Staff Salary Review

Most people will discuss reducing salaries in order to save money when discussing salary. The current staffing shortage in the dental industry means that practices are having a difficult time attracting and retaining staff members. It's better to make sure that your staff receives competitive pay and raise them if they don't. This will increase your cash flow, but it's cheaper than training and hiring new staff. Your practice will be able to weather difficult economic times because of your loyal staff.

6. Renegotiate Lab Rates and Supply

You may be experiencing price increases from your suppliers and labs, as they are likely facing the same problems you are. If you have good relationships with vendors, you might be able to talk to them about ways you can cut costs. You might be able to negotiate lower fees, find cheaper products, or discover other savings opportunities. If they refuse to budge, or you don’t have good relationships with them, you should shop around for better rates and quality.

We recommend connecting to our team if you are using third-party software for automated reminders, texts, email marketing, e-prescriptions, reviews, or text messaging. These solutions, and many more (called Smart Tools), are available at a fraction of what other companies charge. They integrate with your software so they are easy to use and fit into your normal workflows.

Get the tools you need to improve your cash flow

Adit is the most powerful and affordable solution available today. It also has tons of features that will help you increase your cash flow and make your business more profitable. Get a free demo of our software if you don't already use it.

Book a demo for more information.

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Cloud-hosted vs. Cloud-based: What's the Distinction?

Innovation is changing rapidly in dentistry. The advancements are just the tip of the iceberg. Relocating to the cloud is no more an inquiry of "if" however "when." But what does it indicate for dental practices?

If you haven't currently, it's time to buy cloud dental software. Yet where to begin? Not all cloud systems are produced equal, as well as you need to recognize the nuances to make the ideal choice as well as purchase the ideal innovations to lead the way to long-term success.

Allow's start with the fundamentals by understanding the difference in between cloud-hosted vs. cloud-based platforms.

Cloud-hosted vs. Cloud-based Oral Software: What's the Difference?

A cloud-hosted service is an on-premise software program hosted on a committed (single-tenant) web server handled by a vendor. Remote customers can access the systems as well as applications via a digital personal network (VPN) link or internet browser.

It's basically an organized version of an in-office server in the cloud. Comparable to on-premise solutions, update roll-outs on single-tenant systems are tedious and ineffective due to the fact that they acquire the same coding restriction as tradition systems.

On the other hand, cloud-based (or cloud-native) solutions are hosted in a cloud infrastructure (e.g., Google Cloud Platform) and provided in a software-as-a-service (SaaS) version. These multi-tenant systems are extremely reliable, flexible, and also scalable.

We can think of cloud-hosted (single-tenant) remedies vs. cloud-based (multi-tenant) solutions this way:

A cloud-hosted solution resembles a single-family home within a neighborhood. You need to deal with all the upkeep, upgrade, and utilities. A cloud-based solution is like a home in an apartment building. You have a fully-customizable exclusive space, however you do not have to worry about the maintenance of shared features.

Why You Must Utilize a Cloud-based Dental Software Application Remedy

Cloud-hosted remedies need substantial upkeep as well as set you back more. They'll at some point fall back in development since they can't advance at the same computer rate as multi-tenant/cloud-based applications.

Preliminary implementation times for cloud-hosted software are longer due to the fact that you require to establish the web server, set up the software application, and also configure the remedy. If you need to scale up, you might need to purchase and establish additional hardware-- which takes more time and money.

On the other hand, cloud-based solutions are developed to aid you understand the pledges of cloud computer. Given that you don't require to buy equipment or set up software, the execution time is much shorter. You can utilize the platform as soon as you start your membership.

A shared codebase allows the supplier to provide upgrades much quicker. You do not have to do anything at your end to access the most recent functions as well as updates. Meanwhile, the dynamic expansion of computing sources suggests you can scale up as swiftly as needed without hitting a snag.

As an example, the majority of techniques need to keep a great deal of dental pictures. You have to acquire additional equipment if you run out of storage space in an on-premise server or cloud-hosted service. On the other hand, a cloud-based platform can give the storage area quickly to fit your requirements.

Furthermore, the SaaS version of cloud-based dental technique monitoring platforms permits you to access all the features as well as functionalities for a flat month-to-month charge. You can better regulate your budget plan without stressing over unanticipated capital expenditure (e.g., changing a broken server) or working with a large IT team for recurring maintenance.

A Cloud-based Dental Software For Growing Your Technique

Method management is a long-term investment, and also you have to review remedies through that lens. Partnering with systems that align with your worths and also are dedicated to technology is the essential to realizing the advantages of innovation.

Adit is a cloud-based dental software that permits you to benefit from all the benefits modern-day cloud computing deals. From practice management functions and patient communication includes to imaging capacities as well as data warehousing-- we have actually obtained you covered.

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8 Important Things to Think About Before Joining a DSO

Almost certainly, DSOs are moving the dental business scene. There's two or three distinct reasons you may be thinking about joining or offering to a DSO:

1) you might be approaching retirement,

2) you are hoping to get support from a DSO to deal with regulatory errands and deal with the business side of your training, or

3) you might have another monetary or key explanation. In the event that you're among the dental specialist proprietors who are thinking about the switch, the following are eight variables to consider prior to joining a DSO.

8 Factors to consider and the inquiries to pose prior to joining a DSO

1) Getting to know the DSO

A DSO's history, history, and by and large experience is a decent spot to begin the discussion. You'll need to get two or three center inquiries responded to direct front.

When did they buy their most memorable dental practice? This gives you viewpoint about their residency, life span, and profundity of involvement.

What practices do they claim in your city, area, or state? This is critical to decide cutthroat degree, support closeness, and cooperative open door.

Are the DSOs objectives, statement of purpose, and vision lined up with your training?

What sort of DSO course of action would they say they are proposing? Some DSOs might offer restricted help while others offer complete help. Some DSOs might be keen on purchasing your training while others offer all the more an organization.

By posing these basic inquiries at the start, you can start evaluating the attack of the DSO with your training or gathering.

2) Operational and innovation support

Support for your training tasks, work processes, and innovation are key disclosures in getting to know a DSO.

A DSO can be a significant supporter for innovation overhauls, protection network discussions, and keeping your group prepared and prepared. An allure of offering to DSO for some is the chance to off-stack a significant part of the regulatory undertakings to their corporate help groups.

The limit of a DSO to deal with issues of consistence, innovation acquisitions, and protection networks is serious areas of strength for an of assessment.

To assist you with beginning, a couple of inquiries to pose to about a DSO's tasks and innovation include:

Programming, hardware, and office style:

What are their strategies on whether your training needs to change to new programming and assuming this is the case, what sort of help do they offer?

Will the DSO own any of the hardware or will the training keep on possessing them?

Will there be any new gear or changes to office stylistic theme?

How might electronic wellbeing records be made due?

Tasks:

What explicit functional and authoritative errands does the DSO take on?

How might the DSO function couple with your front office staff?

How might computerized advertising be overseen by the DSO?

How is bookkeeping, charging, and assortments dealt with under your plan?

Protection and sellers:

What protection will the DSO acknowledge?

What will associations with dental plans and sellers be meant for by your new course of action?

Who will be answerable for keeping up with proficient responsibility protection?

3) Financial, lawful, and charge suggestions

Likewise with any significant business choice, you genuinely should completely comprehend the monetary, legitimate, and charge ramifications of joining and offering your training to a DSO. As a matter of fact, the American Dental Association urges dental specialists to talk with a lawyer prior to entering a concurrence with a DSO. For bookkeeping and monetary inquiries, you may likewise find it accommodating to talk with a bookkeeper or monetary consultant.

To find a lawyer, you can request references from different dental specialists or you can look for a lawyer through a legal counselor reference administration with your state or neighborhood bar affiliation.

Focuses to cover with your lawyer and expert guides may include*:

Lawful

Any worries you have about the proposed understanding including end, reimbursement, or non-contend provisos.

Does the arrangement follow government and state regulations and guidelines in regards to DSO proprietorship?

How might consistence with government and state regulations change subsequent to joining the DSO?

Are there any potential or current claims including the DSO?

Will you want to refresh inclusion for proficient responsibility protection and how is the repayment condition influenced by the DSO plan?

Might you at any point end the DSO plan and what might be the outcome of doing as such?

Any business, charge, genuine property, domain, consistence, or other legitimate ramifications of the deal where a lawyer can safeguard your inclinations.

Charge and Financial

Potential duty outcomes of the deal.

What is the monetary strength of the DSO?

Are there potential timing issues you ought to know about?

What are the assessment and monetary ramifications assuming that proprietorship and upkeep of gear change hands to the DSO?

* This data is given as broad direction and isn't expected as lawful or proficient counsel or suppositions. As every exchange is special, if it's not too much trouble, look for the counsel of an appropriately qualified lawyer or expert inside your locale.

4) Collaboration and expert learning experiences

Remember that a DSO has inside proficient profundity. Subsidiary dental specialists inside the association can turn into your go-to organize for ability development, tutoring, references, and clinical cooperation.

Affirm the DSO's proceeding with schooling arrangements and figure out what open doors there are to foster cooperative connections through yearly occasions, and so forth.

Get some information about their expert organization and the conventions for getting to them.

5) Setting and figuring out assumptions

Considering that numerous dental specialist proprietors focus on the DSO choice to acquire balance between serious and fun activities, it's likewise vital to set and figure out common assumptions. Particularly in the event that you're not hoping to resign soon, it's ideal to have areas of strength for an of assumptions so you can imagine what the DSO plan will mean for your balance between fun and serious activities.

What are the assumptions for the day to day and week by week clinical timetable?

How much managerial obligation will you have?

Which job will you have in HR (Human Resources) choices (e.g., employing, terminating, pay, and so forth.)?

How is not set in stone and what are the recompenses?

What are the creation objectives for clinicians and the general practice?

How might treatment arranging and valuing be taken care of?

Who will choose outside sellers? Are there favored merchants?

6) Vetting the DSO

Past requests with the DSO itself, acquiring outside perspectives is additionally useful. Interview different dental specialists who have offered to them and learn about their positive or negative encounters with the DSO.

You can pose these inquiries to acquire understanding into the DSO's corporate character.

Did they finish their legally binding commitments as quickly as possibly?

How much yielding do they give for clinical abilities, information, and experience?

How have they held, prepared, and upheld the current groups both clinical and business?

How responsive is the DSO when issues emerge?

How is their change the executives? Did they have an obtaining convention?

How would they draw in with your ongoing providers, labs, sellers, and so on.?

Talking with numerous references will assist you with better measuring the general person of the DSO to decide whether they're a solid match or not.

7) Real property contemplations

One more thought is the treatment of genuine property under the DSO. In firmly adjusted DSO connections, the DSO might buy the property and rent to your training or rent it themselves and sublease it back to your training. In other less firmly adjusted connections, there might be no adjustment of how the property is held.

It's vital to cover subtleties, for example,

A fair and evenhanded deal value or potentially month to month lease sum

Terms and course of events for a rent (if material)

Property updates, fixes, charges, contribution, protection, and so forth.

Lease increments or lock-in factors

Does the DSO have private value obligation contracts that keep it from buying genuine property?

8) Negotiating the arrangement

Whenever you've reviewed any remaining regions, you'll need to arrange and explain the provisions of the concurrence with your lawyer. Arranging the cost and any remaining terms will guarantee that your advantages are secured and that you'll be content with the arrangement.

You'll need to be aware:

What execution norms (if any) are normal post-deal?

What is the creation pay? How are rewards paid?

What advantages are advertised?

What really does time off, debilitated leave, maternity/paternity leave seem to be?

Are there any amazing chances to get value proprietorship (relies upon the DSO course of action)?

Is there a required time period to remain ready and is there a punishment for early takeoff?

How is the deal organized? Full sum or level of total front and center? Are there any creation necessities appended to deal payout?

One more piece of the proposition discussion ought to include any value. DSOs vary on how they give and approach value. Contemplations like stock, organization obligation, development and extension potential, the kind of value (your training or the Dso's), value payouts, and so forth are vital to explain.

Other DSO assets

Going into a consent to join a DSO can be a commonly useful game plan as long as you go into it seeing all parts of the deal.

You've endeavored to assemble your training. Joining a DSO ought to assist with bringing more balance between fun and serious activities, patient-focused care, and development for yourself as well as your training.

Developing DSOs trust innovation intended to deal with their functional degree

Adit are demonstrated cloud-based dental practice the board and imaging arrangements in the present market among solo confidential practices, confidential gathering rehearses, and arising, medium size, and enormous DSOs.

Realize the reason why our answers can assist with helping your training's worth and guarantee your training is appealing to DSOs.