Page 107 - The Dental Entrepreneur

The Dental Entrepreneur

I had an accounts receivable problem very early in my career and I can now see both sides of
it. What I learned was that people will respond to you based on the level of importance that
you place on something. When I first started out ( when I needed the money most), I acted like
I didn’t need the money and people walked over me like a doormat. I was trying to be a nice
guy and have people like me. What I found out after changing my view of accounts receivable
(some $80,000 later) is that people liked me just the same. They just learned that I had a new
priority and that was to be paid for the work I had done.

Payment Options

In order for you to get out of the interest free loan business, you must have some payment
alternatives for your patients. Fortunately for all health care providers, credit and debit cards
have become commonplace and all practices now process the cards of most major credit card
companies.

In house credit programs such as care credit provide the opportunity for patients to finance
larger cases over time. The important part of any loan program is that you must be guaranteed
payment at the time of treatment and there be no recourse to you if patients default on their
loan. This gets you paid and out of the banking business. There is some cost to you in any
finance program but the bottom line is you get paid at the time of treatment and that goes into
your collections column for that day.

How Do I Reduce Expenditures?

There are several ways to reduce your expenses:
1. Lab Fees
2. Wages

3. Supplies
4. Review Every Check

Lab Fees

It will become a career long quest to find the absolute best lab at the very best price. Lab fees
are such a vital component of your overhead that you must understand the intimate
relationship between the lab fee and the amount that must be charged for the procedure
associated with that fee. Ask dentists in your area about the labs they use and their cost and
be sure to visit the local labs. Be certain to ask about their remake policies and make sure to
communicate the following to whichever lab you choose. “ Whenever you see an impression
that you have a question on or an improvement that I can make please contact me”. Labs are
very reluctant to question any work they receive so they often do what it takes to make it work.

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