Ep. 164: How Many New Patients Does Your Practice Really Need?

 

We all know new patients are crucial, but how many new patients do you really need in order for your practice to be healthy? Well, that depends on a few different factors, and that’s what Jeff is going over in this week’s episode! 

The MGE New Patient Workshop - https://www.newpatients.net 

ABCs Seminar- https://www.mgeonline.com/mge-communication-and-sales-seminars/ 

Free Fees & Plans Analysis – https://www.mgeonline.com/fees-and-plans 

Law of Diminishing Returns Tip - The Law of Diminishing Returns & Practice Growth | Dental Practice Management Tip 

Law of Diminishing Returns Podcast Episode - https://www.youtube.com/watch?v=cMpLS36qffw&list=PLadh6PLCMCduuZDq3D3ITLS-Zz-1tQwoW&index=68 

 Download the Hygiene Formula Spreadsheet - https://www.mgeonline.com/hygieneformula/ 

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Questions From This Episode

How many new patients does Jeff say a healthy, established GP practice needs per doctor?

Around 30 new patients a month per full-time doctor, with 20 as an acceptable low end. A part-time associate working two days a week would need roughly 15 more, and two full-time doctors would need about 60 total. A newer practice still building its patient base should aim higher, 40 to 50 or more.

Why does Jeff say a struggling hygiene department artificially inflates how many new patients a practice thinks it needs?

A practice that doesn't retain patients well effectively turns itself into a specialty-style, new-patient-dependent business, since patients aren't coming back for recall. He walks through the math showing that even at a 20 percent attrition rate, 30 new patients a month should generate almost 14 and a half days of hygiene a week by year ten, growth that quietly gets absorbed by new patient and soft-tissue slots and never gets noticed.

Why does Jeff say outgrowing your physical space is inevitable if you're managing new patients and retention correctly?

If a practice keeps adding new patients while genuinely retaining them, hygiene demand compounds year over year until it consumes more operatories than a solo doctor can keep pace with, eventually requiring a second doctor and running the practice out of chairs. He calls this outcome essentially inevitable for a practice doing both things right long enough.

What two steps does Jeff recommend before spending money on a new office when a practice starts running out of space?

First, drop insurance plans, since the worst-case attrition from dropping a plan is usually around 30 percent, and the profitability gain from full fees typically outweighs the lost volume. Second, consider running a second shift, splitting the day into two staffed shifts in the same physical space, to get more use out of a facility that's already being paid for around the clock.

Why doesn't doubling new patient volume typically double revenue?

Jeff explains that generating leads is actually the easiest part of the equation, revenue also depends on front-desk capacity to handle calls, schedule space to see patients, and enough doctor and treatment coordinator time to properly present and close treatment. When those don't scale alongside marketing spend, a practice that expected to double revenue by doubling new patients might only see a fraction of that increase, since presentations get rushed and follow-up gets squeezed out.

Episode Transcript

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Ep. 165: The Daily Duties of a Treatment Coordinator

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Ep. 163: 6 Reasons Why Your Overhead Might Be Too High