8 Tips to Recession-Proof Your Dental Practice

It’s all too easy for entrepreneurs to look at the headlines warning about the economy and predicting financial doom and gloom. But forewarned is forearmed — and preparing for a potential recession makes good business sense, regardless of your industry.

Is it possible for dental practices to not just survive but thrive in turbulent economic times? Absolutely! Here’s how.

1.Know All Your Numbers
Your dental practice statistics offer insights into informing the strategies you choose to make the right decisions for your business. The most important numbers to know, especially during an economic downturn, include:

• New patient numbers
• Regular active patient base — count each patient you’ve seen for anything within 18 months one time
• Collections
• Expenses

When you know these numbers, you’re better equipped to manage your patient pipeline, continue producing, and realize solid (or even increased) ROI. If you haven’t talked to your CPA in a while, now’s a good time to chat! And even better — find a CPA or business advisor specializing in the dental field.

2. Stay Current on AR
Don’t neglect your accounts receivables. Don’t ever write off small balances, and make sure you’re billing accurately. In addition to verifying patients’ dental insurance, your office staff should also:

• Collect at the time of treatment
• Submit claims the same day as patients receive treatment
• Run AR daily in-house
• Mail patient invoices once the insurance check arrives

3.Build Patient Relationships
Want to cultivate a good reputation among your patients and gain referrals, too? Talk to your patients and learn what motivates and worries them. Be empathetic and understanding — and use this knowledge to create the most effective treatment plan that also accommodates their needs.

Your patient relationships empower you to generate goodwill. Keep it going, during uncertain economic times, by proactively reaching out. Use social media and newsletters, for example, to reinforce your commitment to their care. Offer flexible financial options enabling more people — including those without insurance — to get the dental care they need.

4.Make Treatments Accessible
Many of your patients may find themselves struggling financially. If they need a significant (and expensive) procedure, they may delay treatment because the cost is too high to pay at once. Offer payment plans to help your patients get the treatment they need — but make sure you’ve got a collections system in place to protect your finances should anyone default.

5.Worry Less About Dental Insurance
Your patients could lose their insurance if we go into a recession and companies lay off more workers. Rather than losing those patients completely (or not seeing them for many months or longer), consider offering an in-house insurance plan. Not sure where to start? There are companies like DentalHQ that work with you to create a membership plan and track each member’s benefits and payments.

6.Champion Cost Efficiency with Your Hiring Processes
Finding, vetting, hiring, and onboarding dental employees can be expensive and tiring. Consider outsourcing your hiring to a company specializing in sourcing highly qualified dental assistants, hygienists, and front- and back-of-house personnel.

7.Consider Outsourcing Office Operations
Talk to your accountant or CPA to see if it’s more cost-effective to outsource operations like billing and marketing, web development and IT services, and phone answering service. You may find you’ll save money by opting not to hire for these roles in-house.

8.Be Flexible With Your Systems
Some dental services — like cosmetic services — are more discretionary, and patients may pass on them during economic downturns and priorities basic oral health maintenance instead. Pivot your practice to take advantage of these needs. You can proactively switch gears with marketing, new patient screening and processing, and treatments you offer. Be proactive in streamlining your insurance processes and creating more flexible payment plans or financial arrangement systems.

Steady as She Goes

A Bankrate survey found that 40% of Americans aren’t prepared to weather the next recession. But taking time now to evaluate your operational practices, create a predictable recurring revenue stream, and analyze where you can tweak to save costs and protect profit margins will help you navigate the uncertainty.

Your practice might see a bad month or even a bad quarter — but lower numbers don’t necessarily mean a bad year. A restaurant or retail store may flounder and fail when their customers fall off because the economy shifts, but dental practices are inherently more stable. Staying committed to providing exceptional customer service, prioritizing your patients, and embracing adaptability is the best protection you can offer your business.