Ep. 83: Scaling Up Your Practice – What’s the First Step?

 

Want to expand your practice and increase revenue, but aren’t sure where to start? In this episode, Jeff covers a few key metrics for evaluating where you are at currently, what your potential is, and what your next step should be to jumpstart growth. 

Links:

Download the MGE Reactivation Program - https://www.mgeonline.com/mge-reactivation-program

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

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

Listen to full episode :

Have a question for Jeff?

Fill out the form and he will get back to you.

Ask Jeff a Question

Questions From This Episode

How should you actually calculate your true active patient count, and why does the industry-standard 24-month definition fall short?

The commonly used definition, anyone seen within the last 18 to 24 months, works fine for a practice sale but doesn't reflect genuine engagement. A more useful number is simply how many patients currently have a next appointment on the books, that's a real, current signal that someone is actually participating in the practice, rather than a broad historical window that can flatter the numbers.

How many active patients do you need per full-time doctor before adding an associate makes sense?

Roughly 800 to 1,200 active patients per full-time GP, enough to support one full-time hygienist at a one-to-one, or at most one-to-1.5, doctor-to-hygiene-day ratio. Pushing much beyond that ratio, say one doctor supporting two or three hygienists, tends to backfire, since the doctor ends up with too many exams to do to properly diagnose and sell treatment, or complete procedures without constant interruption.

Why is reactivating inactive patients often a faster and cheaper path to growth than chasing new patients?

Because someone who's already been a patient, even years ago, already has a relationship with the practice, closing treatment with them is generally much easier than starting cold with a true stranger. In one illustrative example, recovering 1,800 lapsed patients was compared to the roughly 630,000 dollars it would cost to acquire that many new patients through postcard marketing alone, a cost gap that makes a dedicated reactivation effort, even a full-time hire, look like an easy investment by comparison.

How many new patients should a full-time doctor be bringing in monthly, and what does that translate to in hygiene growth?

Roughly 20 to 25 new patients a month per full-time doctor. Sustained at that pace, a practice should be adding approximately one additional day of hygiene per year, so four days of hygiene this year should reasonably become five next year, then six the year after, assuming nothing else changes. Supporting a full-time associate typically means pushing that new patient number up to around 50 a month.

How does heavy PPO participation distort these scaling metrics, and what should you do about it?

Heavy PPO participation, especially plans reimbursing at a steep discount, can make an otherwise healthy-looking patient count deeply misleading, since the actual revenue and margin available to support additional staff simply isn't there at those fees. Dropping PPOs typically costs a practice around 30 percent of the patients in that specific plan, sometimes considerably less when done well, but the resulting fee structure usually makes the practice meaningfully more profitable even with the reduced volume, which is worth factoring into any scaling plan rather than treating patient count alone as the full picture.

Episode Transcript

Previous
Previous

Ep. 84: Staying Profitable as Your Practice Grows

Next
Next

Ep. 82: Case Acceptance: How to Address Patients’ Objections