Not all dental professionals are created equal -- especially when it comes to value. Most general practitioners subscribe to the same primary value contributors -- revenue, infrastructure, and patients -- but there is one major difference for specialists: referrals.
The success of surgical specialty practices is highly dependent on referrals, which are typically tied to an individual doctor rather than group of professionals. That means that the health of the relationship between the general practitioner making the referral and the doctor providing services is critical to the long-term viability of a specialty office. It also adds a few more factors to determining value -- including recurring revenue, the number and age of referring doctors, and greater focus on tenured, trained staff. With that in mind, specialists can take three major steps to drive value.
- Cultivate Relationships - For an industry built on referrals this might seem like an obvious step, but the economic downturn in 2008 combined with a shift in how patients prioritize dental care puts added pressure on the importance of relationships. As younger professionals enter the dental industry, many are investing in additional training to keep specialist services in house. By seeking out new connections and strengthening old ones, dental specialists can spur collaboration rather than competition.
- Don’t Slow Down Too Fast - It’s not uncommon -- especially for surgical specialists approaching retirement -- to decrease practice time and limit advertising. As tempting as it may be to take your foot off the pedal, it has a strong negative impact on your revenue stream and, therefore, value. It’s important to keep working for referrals and invest in advertising your ability to take on new patients or partnerships. The more you allow your business to slow down, the harder it will be to get it back on pace for success.
- Modernize Your Facility - Keeping your practice looking nice or investing in more efficient processes isn’t always at the top of the priority list, but maybe it should be. A neglected infrastructure can cripple a practice and take a blow to your overall value. This is especially true of specialists such as endodontists who have seen overwhelming advancements in technology over the last several years. If you’re struggling to keep up with the times, bring in a certified valuation analyst who can help you determine what should be at the top of the list for updates.
Surgical specialists may have close ties to general practitioners, but their reliance on referrals puts them on a different playing field when it comes to keeping up value. Sign up for a free valuation today to find out where you might be missing value.