For more information on seeing Howard speak at this event:
Texas AGD
www.tagd.org/ndc
6/5/2015
Omni Southpark
4140 Governors Row
Austin, TX 78744
Dr. Farran’s Seminar Coordinator is:
Rebecca Parent
rebecca@farranmedia.com
Start building your ideal dream dental office!
For more information on seeing Howard speak at this event:
Texas AGD
www.tagd.org/ndc
6/5/2015
Omni Southpark
4140 Governors Row
Austin, TX 78744
Dr. Farran’s Seminar Coordinator is:
Rebecca Parent
rebecca@farranmedia.com
For more information on seeing Howard speak at this event:
Benco Dental Open House
Anna Brode
724-776-5660 ext. 83021
abrode@benco.com
Dr. Farran’s Seminar Coordinator is:
Rebecca Parent
rebecca@farranmedia.com
by Howard Farran, DDS, MBA, Publisher, Dentaltown Magazine
There is not a billionaire on earth who doesn’t use debt to benefit business. Even if you started saving money the day you were born and never spent a penny, you’d die before you’d ever see your bank account reach a billion dollars. Billionaires borrow other people’s money (OPM), whether through stock or bond offerings or a bank. They buy or build something and then they pay back the loan.
You could have worked a minimum wage job for 40 years, saved money and paid for dental school in cash. But instead most of us took out student loans. You may not be a billionaire, but you used OPM to build your career. This was smart debt.
The same goes for purchasing equipment in the practice. The adage “you have to spend money to make money” is true, and it often entails other people’s money to get to that point. This isn’t to say you should blindly go into massive debt. Analyze the ROI on a piece of equipment. What will the benefit be to your practice and how long will it take to pay back the loan?
It’s a privilege to borrow
It’s a privilege to be able to borrow money. Third world countries don’t have this option. Debt is leverage, but it’s treated as an emotional decision.
I graduated from dental school in 1987 with $87,000 in student loans. That’s in the $220,000 range today. I paid it back after graduation while working as a dentist because the lowest-paid dentists made $50 an hour. That’s 10 times what I would have made working and saving money at that minimum wage job. If I hear one more dental school graduate whine about his $300,000 in student loans, I’m going to slap him! Those loans took him from earning $5 an hour to $50+ an hour
I often hear dentists say they don’t want to purchase a CAD/ CAM or CBCT unit because they don’t want to go into that kind of debt. You have to look at a number of other factors besides the sticker price of a piece of equipment like that. What will having your own CAD/CAM unit do to your lab bill? If you’re doing more crown and bridge work and slashing your lab bill in half, how long will it actually take you to pay the loan off? Does the technology attract more new patients because of same-day appointments? Does adding a CBCT unit mean you can start performing more complex implant procedures in your practice?
Work with a dental CPA
Work with a dental CPA to see if a big purchase is a good move. When I say dental CPA, I mean a CPA who works exclusively with those in the dental profession, not a CPA who has one or two dental clients. To find one, check out: The Academy of Dental CPAs (ADCPA.org) and The Institute of Dental CPAs (INDCPA.org). These professionals specialize in dentistry and can help you to best determine if a purchase will be beneficial to your individual practice.
Look at the reports that matter
There are three main reports when you’re looking at your practice finances: the statement of cash flow (Fig. 1), the balance sheet (Fig. 2) and the statement of income (Fig. 3). They’ll all reflect debt differently.
Your statement of income (P&L) shows numbers like depreciation, deferred taxes, etc. It’s mostly used for tax purposes.
Your balance sheet is only used when you’re trying to get a loan. It’s not used to make business decisions. Debt will always make your balance sheet look ugly. The statement of cash flow is what actually matters. This statement is what really shows what’s happening in a business. As humans, we tend to be emotionally connected to the debt on a balance sheet.
But your statement of cash flow can be solvent. It’s what makes leverage out of debt, and debt is what separates the billionaires.
The data provided in the Financial Statements is based on an average from the clients of Naden/Lean, LLC. These reports were provided by Tim Lott who is a partner with Naden/Lean, LLC, a professional services and CPA firm with a specific concentration in the dental industry. He has been working with dental professional for thirty years and w e appreciate his contribution. Timothy D. Lott, CPA, CV A; Naden/ Lean, LLC; tlott@dentalcpas.com; (410) 453-5500 Local; ( 800) 772-1065 National; www.dentalcpas.com
In memory of Dr. Rou’aa Diab
Dr. Rou’aa Diab, a female dentist, was arrested by the Islamic State on August 22, 2014. She was arrested with four others in Al-Mayadeen, a city on the border of Iraq. Without proper trial, Diab was charged with the crime of “treating male patients,” and was executed.
As fellow dentists, Dr. Diab was a colleague to each of us. She was beheaded for helping prevent and treat dental disease. She should be recognized for her bravery and dedication. And her name should never be forgotten.
See more at: http://www.dentaltown.com/Dentaltown/Article.aspx?i=372&aid=5079#sthash.OfKFTcgi.dpuf
For more information on seeing Howard speak at this event:
Patterson Dental
Sue Doran – 888-761-0020
susan.doran@pattersondental.com
Dr. Farran’s Seminar Coordinator is:
Rebecca Parent
rebecca@farranmedia.com
For more information on seeing Howard speak at this event:
California Dental Expo
847-620-4474
www.californiadentalexpo.com
registration@goeshow.com
January 18, 2015
Los Angeles Convention Center
1201 S Figueroa Street
Los Angeles, CA 90015
Dr. Farran’s Seminar Coordinator is:
Rebecca Parent
rebecca@farranmedia.com
For more information on seeing Howard speak at this event:
Dental Summit Nashville
615-883-7800
info@dentalsummitnashville.com
http://www.dentalsummitnashville.com/
10/3/2014 & 10/4/2014
Music City Center
201 5th Avenue South
Nashville, TN 37203
Dr. Farran’s Seminar Coordinator is:
Rebecca Parent
rebecca@farranmedia.com
I had active Townie Dr. Sameer Puri come to my practice to train my staff on a new CAD/CAM software last month. Why? Because I wanted my assistants to know how to use the system just as well, if not better, than I do. I know that 90 percent of the questions asked by patients are fielded by the front desk and the assistants, not me or the other doctors. And because of this, I want all my staff to know what they’re doing!
So many doctors go to CE courses or conferences alone. They’ll do in-office training alone. They’ll never teach their staff the software or systems or procedures. This doesn’t make any sense. You don’t work alone. You don’t run your practice alone. Why would you attend a conference to learn how to better your practice and then not bring your staff along? That just doesn’t make sense.
I sat down with Sam to ask him about CAD/CAM implementation. Our office has it already, but not all offices do. I wanted to see what he had to say about the technology and how he helps doctors successfully implement the machine into their offices. Here are some of his tips:
Train Your Team
The key with any office utilizing CAD/CAM is getting your team on board. At one point, there was a lot of debate about whether the technology worked or was worth it. I think that’s over. There have been offices—single doctor, one assistant, one front desk—that have been successful and there have been multi-doctor, multi-staff offices that have integrated it efficiently.
Once you get your team trained with how to use CAD/CAM properly, the dentist really just needs to do what he or she has been doing with a lab. The dentist should numb the patient, prep the tooth and then leave. With CAD/CAM, the team can take over (depending on the laws of the state) and nearly the entire process can be done without the supervision of the dentist. The dentist can be in the other room being productive. And when the restoration is done, come back in to check the work and cement it. If the team member takes the impression, designs the restoration, mills it and either polishes or glazes it, it saves the doctor a lot of time he or she can spend in another operatory. The key is that you have to have your team trained. You have to help them learn how to utilize the machine.
Don’t Let it Be Disruptive
Introducing a new piece of equipment into the office can be huge. Change doesn’t have to be overwhelming. I hear from dentists all the time, “We’re really busy. I don’t know if we have the time for it.” Well, it’s no different whether you have a well-functioning office using CAD/CAM or if you’re sending your restorations to a lab. The doctor does not have to be heavily involved in the design of the restoration…if you train your team.
Integrating CAD/CAM doesn’t have to be disruptive. You should adapt the system to your practice, not adapt your practice to the system. No matter how big or small your practice, you have a certain flow in your office that obviously works for you. Make the machine accommodate the flow of your office. Things don’t have to change drastically.
Yes, you’ll have to learn how to take a good digital impression. But that’s easy with the current generation of CAD/CAM systems. The impression gives you a lot of feedback. You instantly know whether you have a good prep or not, whether you’ve reduced enough, whether you need to do a reduction coping or spot the opposing. You know instantly whether you’ve captured the margins and whether you’ve prepared the tooth properly.
If the team member is doing all that work for you and they say, “I can’t quite see the margins.” He or she simply calls the dentist back, the dentist makes the appropriate modifications and you proceed.
Recognize the Need for Same-day Dentistry
When it comes to implementing the technology, the biggest mistake that offices make is they forget that there is a person attached to those teeth. They’ll say, “My lab is great. My temporaries fit well. My patients don’t mind coming back for a second visit.” This is utter nonsense. I have never met a patient who would prefer to have a restoration done in two visits instead of one. It’s crazy to believe that your patients have all this free time and can come back for multiple appointments.
Discover CAD/CAM’s Potential
When CAD/CAM first entered the mainstream market, many offices bought a CAD/CAM but they didn’t know how to use it to its full potential. This was common because the learning curve was significant. Twenty years ago you had to spend time doing 50 to 100 restorations just to learn how to do a simple inlay. You had 2D software. You had to manipulate a bunch of lines on the screen and imagine that would be a restoration. Today, with proper training, a dentist can do 30 restorations his first month. The learning curve is significantly reduced. The return rate (those who buy the machine and say it doesn’t work out) has dropped exponentially too, because the machine, the software and the results are so good.
In the past, dentists were limited by the materials they could use. We only had one material: feldspathic porcelain, which is a relatively weak porcelain. We had to use that everywhere. Today, a dentist has anywhere from six to ten different types of blocks they can mill—from composite to zirconia to lithium disilicate to feldspathic porcelain. We can do inlays, onlays, implant abutments, bridges…we’re not talking about just a simple little machine anymore. We’re talking about a robust piece of equipment that can serve as a center of the practice doing many different types of restorations.
What’s your experience with CAD/CAM? Have you integrated it? Are you ready to do so? Let’s continue to talk about this massive evolution of technology at Dentaltown.com. – See more at: http://www.dentaltown.com/MessageBoard/thread.aspx?s=2&f=2680&t=233712#sthash.teltjuS7.dpuf
When the 2013 Townie Choice Awards was in full swing this summer, and dentists and hygienists were voting for all their favorite products and services, we asked all the voters to answer the question “what’s the biggest crime in dentistry?” We got some interesting answers – overtreatment, managed care, insurance reimbursement, indifference, embezzlement – just to name a few.
Dentists deal with all sorts of ethical dilemmas on a daily basis, and the Dentaltown the ethics forum on our message boards are filled with debate. This month we’re starting a series called “Ethical Dilemma” that will address some of the stickier, less black and white, 50- shades-of-gray areas in dentistry. These articles will run throughout the duration of 2014. I’m kicking off the series with the topic of managed care.
There are some ethical issues the majority of us can agree on. Right now most of the world agrees we shouldn’t eat cats, dogs and dolphins even though I bet they all taste like chicken anyway. But sometimes the lines are more blurred, or aren’t universal. I once lectured at a dental school in India. A dental student came up to me and said she couldn’t listen to my talk because I eat cows. When you go to McDonalds in India, there is no Big Mac on the menu. It’s a McVeggie Burger or a fish sandwich.
Everyone sees everything differently. It’s hard to get 150,000 dentists (that’s about how many are on Dentaltown.com) to even agree what day of the week it is, let alone about how managed care should or shouldn’t work.
When it comes to ethics, most people, dentists included, fall within a midrange. This middle is the silent majority. A normal distribution curve (Fig. 1) says 68.5 percent of people make up the middle ground. The further out from the middle, the fewer the people, but the more extreme. I envision this Ethical Dilemma series sparking conversation on the boards, but chances are only the extreme outliers will argue. This series is meant to start a conversation, not be the world according to Howie! It’s meant to get you thinking and discussing your views and experiences from what you see going on in your practice and in what ways you deal with the ethical issues that arise everyday. Can’t we just have an honest conversation?
About Half the U.S. Market is Focused on Price.
If someone asks you “What’s the best car?” you’re going to say something like Lamborghini or Maserati or Ferrari, or some luxury car that costs an absorbent amount of money. While this is ideal, a $200,000 car isn’t realistic for the average buyer.
Jay Leno might throw these numbers off, but the most popular cars, according to Forbes are: Ford Focus, Toyota Corolla and Volkswagen Jetta—all midsize, reasonably priced sedans. These are the top cars because they are what most of us can afford. No, they’re not the best cars, per se, but they are the most practical based on cost, safety and mileage.
This same idea can be applied to dentistry. Sure, you could have a high-end boutique style practice in a lower economic area, but it would be like setting up a Mercedes-Benz dealership in Parsons, Kansas. It could work, and would depend entirely on the dentist being exceptional in many areas, but a Ford dealership would probably do a lot better, and would be a lot easier of a sale. Demographics act like gravity, they’re hard to deny. In business we call this market segmentation and markets are usually carved up by price, quality and service.
Americans basically divide the dental market in half meaning half are primarily focused on cost and will go wherever their dental insurance, employer, Medicare or Medicaid tells them to go while the other half sees dentistry as a relationship and they absolutely want to pick their dentist. They have a special relationship with their dentists and do not want to go to another dentist just because a third party told them to, and they will pay more for this privilege.
I hear so many dentists say that the problem with third-party insurance fees is they can’t do the treatment a patient really needs, and they’re only willing to do treatment that they’d do for themselves. I personally think this view is a little extreme, especially having traveled the world over.
If someone has a cavity, the decay needs to be removed and you need to fill it. If you’re getting $300 for the filling, then get out your fanciest materials from 3M and Ivoclar, do your tooth-colored adhesive restorations, and make some money. That’s basic; Cost + Profit = Price. But when managed care comes in and sets an exact price, you’ve got to switch to Price – Profit = Budget. A budget means you will need to have a plan. Why are you doing a tooth-colored restoration when bonding agents cost nearly $1 million a barrel? Is it because it’s the only thing you would have in your mouth? Why is it that you don’t place amalgams when research says they’re lasting 30-35 years and 3 billion earthlings live off of $3 a day? This was the only material available when I was a kid and at least a few people would say I turned out just fine!
You might have very different values and priorities than the patients you are treating. Your patient has the right to have different values than you, the dentist. I heard a speaker once say how horrible a parent was because he didn’t have money for his kid’s braces but he took his whole family to Disneyland. I’m good with that. I still remember driving from Kansas to California with five sisters in a green station wagon playing Monopoly in the back the whole way to Disneyland, without seatbelts, I might add, and it still is an awesome memory.
If you’re doing low-cost dentistry then treatment plan accordingly. Be aware of all the upgrades that are not covered like ortho, implants, bleaching, bonding and veneers. And if a patient only has enough resources or dental values for an amalgam, then place one.
I’m not a firm believer that the highest price is always the highest quality. Southwest Airlines is a testament to this. Southwest is the lowest cost airline and no one has ever died in one of its planes. If the plane doesn’t fall out of the sky, and it takes off and lands on time (and preferably doesn’t lose my luggage), it passes my test. High-cost dentistry isn’t necessarily the best quality or what’s best for the patient anyway. Which lasts longer, amalgam or composite?
You can never afford to get complacent and ignore your own unique dental marketplace. You must cultivate relationships and provide exceptional service at a fair price. The case of low cost dental offices and those who don’t participate is not about the quality of dentistry. It’s perceived value. Managed care fills a necessary market. For a free enterprise system to successfully exist, you must have different market providers for different price points. If this does not happen it is called a market failure and this almost always invites the government in to correct the failure. Do you want government-owned dental offices? If the answer is no, then start treating the low end providers with more respect.
Don’t try to dictate what people can choose or afford. That’s not your decision to make. They’re the consumers. They’ll make their own decisions as to how to spend their money based on what they want and how much they have to spend. It’s our decision as to how we deal with their choices. – See more at: http://www.dentaltown.com/Dentaltown/Article.aspx?i=351&aid=4778#sthash.v4VaGYlH.dpuf