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Searching for promotional deals or cheaper materials is an obvious way to save money in your dental practice. Although it can be fun to make a sport of the hunting process, is it the best way to save money? A recent study of a group practice indicates maybe not.
A 3M group practice study shows that material costs and dental equipment account for only a small proportion of the overall operating costs. In fact, material costs only account for 11%, and dental equipment was similar at about 10% of their total operational cost.
The remaining 80% of overall costs are instead related to overheads such as paying for rent, mortgage and electricity, and for labor.
In the case of this group practice, the biggest cost factor is labor. This includes paying for the staff, performing dental procedures as well as the administration and reception tasks, accounting for nearly half (48%) of total operating cost.
It means that the best way to save money in your practice may not be a result of finding cheap materials. Rather it might be to work with your team to develop an efficient practice that makes the best use of available time and resources and reduce the time needed to perform procedures:
By utilizing efficient procedures, the reduction in chair time could result in savings significantly greater than the savings that result from material cost reduction. Additionally, the standardization of products and procedures may result in less rework and frustration for you, your staff, and your patients!
Here are some tips how to achieve this:
Try it and you will be surprised how effective standardization with good materials can be! It might make you feel in control and less stressed, and with less variation in procedures outcomes will hopefully be more predictable. With the extra time you can either enjoy more free time for yourself or see more patients and earn more. It´s your choice!
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