Fee OnDemand Article from Bill Domb
Testimonial:
Have you been using all of the information available to you to make effective decisions about setting your fees? If you answered yes to either of the questions above, I submit to you that you have not.
Increasing your fees based on an across the board increase, or where you think you should fall in the UCR percentiles, has no relationship to how profitable a procedure is in your practice.
How much does it cost you to do a 2750? To really know the answer, you would have to look at your lab costs, your labor costs, your supply costs, how much time it takes you to do the crown, etc. If you don’t know how much a 2750 costs you, how can you even begin to think about how to set your fee? But if you are like most dentists, how are you going to find the time to figure out how much a 2750 costs you?
I would like to share with you what I believe to be the ‘new frontier’ in fee setting: Fee Schedule Optimizer onDemand. To optimize means: to make as perfect, effective, or functional as possible. For our last fee update, we implemented the Fee Schedule Optimizer from Sikka Software, which computed the most comprehensive fee schedule analysis we have ever conducted. And all in less than an hour!
Sikka Software has figured out a way to automatically read data from your practice management system regarding procedure, frequency, revenue, and time taken to complete the procedure. This information can be combined with your lab costs, and other overhead information. Once FSO onDemand is customized to your practice, it imports fee percentile information specific to your zip code, and computes an optimized fee schedule for your review.
Want to know how much of an increase in revenue you will see by implementing the optimized fees? FSO onDemand will tell you. And Sikka Software is so confident you will see a significant increase in revenue, that they offer a money back guarantee.
Not sure you want to go with the optimized fee FSO onDemand recommends? No problem, change the fee and see how it affects your increase in revenue. Are you trying to be the low cost provider in your area? No problem, see how low you can go by watching how lowering your fees affects your revenue.
And FSO onDemand does more than just optimize your fees. It also helps you identify other areas in your practice where you have room to grow revenue.
In the Practice Vital Signs Report, FSO shows you how your practice procedure mix compares to your peers. You might find that you are generating more revenue from partial dentures than from bridges and implants relative to the typical general dental practice. Based on this information you could implement patient education programs on bridges and implants.
Do you know what your ratio of prophy related revenue to periodontal related revenue is? If your ratio is skewed toward prophy revenue, you may be able to increase your overall practice revenue by implementing a soft tissue management program.
Tired of implementing the latest big idea and watching it fail? FSO onDemand can help you make more informed decisions about how to increase your revenue based on real information from your practice.
And what if you are considering adding new procedures to your repertoire, what should you charge? FSO onDemand can help you calculate a profitable fee that fits in with your zip code. This is a great feature for new dentists setting fees for the first time.
Are you thinking about updating your fees? Make sure you use the latest technology that considers your profitability per procedure, in addition to fee percentiles. This time don’t just update your fees, optimize your fees!
William C. Domb, DMD, PC
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