19 Jul How to Maximize Practice ROI
In this day and age, the importance of dental office technology is all but a forgone conclusion. Corporate practices and franchises have the deep pockets necessary to line their offices with the latest equipment. As such, independent practices must do the same – and not just for the sake of appearance. Today’s modern dental technology gives dental professionals a leg up in their capabilities, bolstering both diagnosis and clinical ability. In order to secure this technology, however, a practice must have a sound and dependable plan for quickly and efficiently securing a return on investment with each purchase.
So, what are some of the best ways to go about securing this level of speedy, dependable ROI? Below are just a few.
Calculate Potential ROI Ahead of Time
As previously mentioned, it is critical to have a game plan and perform due diligence surrounding the level of revenue that a given piece of technology can earn for your office. Dr. Chris Salierno, a dentist and DentistryIQ contributor, tells us to use a simple equation for ROI: dividing gross profit by the cost of investment and multiplying the answer by 100. “Gross profit is simply the cash left over after direct materials and labor from your fee are subtracted,” he reminds us. In this case, if you were going to purchase a CBCT machine, consider multiple avenues of gross profit that may be available. For example, you might charge a small fee for use of the scanner, and the scanning results might also help improve case acceptance – resulting in even more revenue.
Utilize the Technology Pragmatically
Upon purchasing a new piece of office technology such as a CBCT scanner, dentists will often take the wrong approach to securing ROI in their haste to make their money back. For example, they may start charging patients a fee (e.g., $200) per scan with the CBCT scanner. Their logic makes sense – realize revenue from the scanner’s use with fees to quickly cover its cost. However, a high fee will dissuade many patients from using the scanner. This results in missed case dollars, since CBCT technology improves case acceptance with its clear and understandable imaging. The money a dentist stands to gain from an accepted treatment plan will easily eclipse $200, but they may never have that opportunity if patients refuse a CBCT scan due to an upfront fee.
Remember, investing in office technology for your dental practice is necessary. However, to make it work in your favor, you must develop a solid plan prior to purchase. Make sure you are realistic when you are running the numbers. Also, be sure to stick to this plan upon purchase while being willing to recalibrate, if the need arises.
Would you like to learn more about investing in cone beam computed tomography (CBCT) scanning for your practice? If so, call us today at 855-PREXION or find a representative in your area. Our representatives can help you gain a better understanding of how CBCT technology can generate revenue for your practice.