Understanding business practices, attracting patients and expanding services are just some of the ways dental practices can increase profitability this year, according to Barry Lyon, DDS.
Dr. Lyon is a chief dental officer for the division of orthodontics and pediatric dentistry at Sarasota, Fla.-based DSO Dental Care Alliance. He recently spoke with Becker's about how dental practices can increase profitability.
Editor's note: This Q&A is part of a weekly series featuring Dr. Lyon focused on topics in the dental industry and DSO field. This response was lightly edited for clarity and length.
Question: What are the best opportunities for dental practices to increase profitability right now?
Dr. Barry Lyon: There are a number of things dentists can do to increase profitability. Let’s take a look at a few that can have the greatest impact.
The number one thing private practice dentists can do to increase profitability is to understand the basic principles of business. Dental schools do a wonderful job teaching dentistry but historically have done a poor job preparing dental students for running a business. Regardless of whether you are the practice owner or an associate dentist, failing to understand the basic principles of business determines whether you simply exist or thrive.
Understanding and managing overhead expenses is one of the basic principles of managing the business side of a dental practice. Whether it’s staff salaries, rent, supply procurement or taxes, knowing what goes out is as important as knowing what comes in.
Obviously, putting patients in your chairs is critical to success. Creating a robust marketing plan with an online presence is today’s gold standard. Search engine optimization, Facebook, Instagram and others have proven to be effective.
Broadening the scope of the dentistry you provide enables you to offer your patients services that may have previously been provided by the dentist across the street or by a specialist. Implant placement, periodontal care and cosmetic procedures lead to increased productivity.