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Strategic Planning for Your Dental Practice
The health care environment is constantly reinventing itself. As with any change, the first reaction of providers may be to protect the status quo, determine how to survive the threat and remain intact. But to be truly successful, providers need to look for and take advantage of the opportunities that are inherent in change. Those providers that recognize and embrace the changing reimbursement environment will thrive. Others will fall behind the competitive curve and lose market share. Dentistry is not immune to the changes taking place in the overall health care system and cannot ignore alternative reimbursement models.
The changing health care environment requires strategic planning to ensure long-term viability. Just as in the health care industry in general, dentistry is experiencing trends toward cost containment, increased use of managed care, new organizational structures for the delivery and accountability of services, and an increased emphasis on consumer service. A thorough analysis of the overall market and the individual practice is necessary to produce a comprehensive strategic plan. The vision created provides a road map to increased practice efficiency and maximized profitability. The by-product is enhanced practice value.
To develop an effective strategy, providers need to assess their macro reimbursement environment and the impact it has on their practice. To prepare for and take advantage of a changing landscape, a provider must:
- Monitor the environment, anticipate change and its impact on the delivery of services.
- Gather information on the demographics of their immediate geographic location and individual patient base.
- Benchmark and analyze financial information about their practice.
- Develop and implement a strategic plan that allows for the profitable inclusion of alternative forms of reimbursement into their practice.
- Incorporate office efficiencies and cost containment measures into their strategic plan to prepare for alternative forms of reimbursement.
- Continuously monitor the results, re-evaluate and revise the strategic plan.
- Consult with practice experts on the details of transitioning a practice to include alternative forms of reimbursement.
Not monitoring the macro health care environment may impact a practice through patient loss, decreased revenue, sliding market share and surplus chair time. History has shown that it is the consumer -- patients, payors, referral sources -- who determine the direction of care. No provider can afford to ignore consumer health care trends.
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