Orthotown April 2018 - 56

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Track number and types of repairs
each month. Compare with the
previous year. Five percent is average
and 3 percent or less is excellent.
Number of no-shows should be
5 percent or less.
On average, the overhead for an
orthodontic practice is 61 percent.
The following are other norms:
- Rent: 6 percent.
- Clinical supplies: 6 to 8 percent.
- Office supplies: 1.5 percent.
- Staff payroll: Total off the W2
forms, 18 to 20 percent (this
does not include the lab tech,
marketing coordinator or family
members).
- Lab salary and outgoing lab fees:
3.5 percent (this does not include
aligner treatment lab fees or lab
setup fees for new starts. Also, a
new concept is having a digital
assistant which is too new to
report trends).
- Marketing: 3-plus percent.
Invisalign lab fees vary due to
volume.
Collections per patient visit for
Invisalign should be $300-$400 per
visit after you subtract the lab fee.
Collections per visit for braces should
be $250 or more per visit. $350 or
more is excellent.
Case acceptance for the recall-ready
patient should be 90 percent or
higher.
Case acceptance for those ready for
Phase II should be 80 percent or
higher.
Case acceptance for a child's exam
should be 75 percent or higher.
Case acceptance for an adult's exam
should be 50 percent or higher.
Many practices do a poor job of
tracking, "How did you hear about
our office?" Compare the number of
referrals from dentists, from friends,
family and other sources with the
previous year.

56

APRIL 2018 // orthotown.com

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Track new patient calls into the
practice versus number of exams seen.
* The percentage of time running on
schedule should be 95 percent or
better.
* Set goals for the amount of time
needed for each procedure. Evaluate
each chairside through your software
patient-flow reports.
The team can be instrumental in tracking
data each month. They can assess where they
stand in terms of the goals. For example, to
track true new patient case acceptance for
children, the following should be tracked:

the potential purchase price based on the
practice's potential to excel. It can also show
if the practice is in a significant decline.

Conclusion
KPIs are an important scorecard for any
business. They keep you on track and allow
you to manage and achieve your desired goals.
Ask yourself, "Am I settling for average or
taking action to be excellent?" Week after
week, I visit offices that have average case
acceptance. Improving that one statistic
can make a huge and instant increase in
your production. ■

Child exams seen for the month

100

Patients referred out

5

Patients put onto recall

35 or 35 percent
(This is your file of gold!)

Patients who did not need treatment

0

Patients that were potential starts

60

Patients started

40 or 67 percent

Patients who will call back

20 or 33 percent

The national average for case acceptance
is 55 percent. A good percentage is 65,
whereas excellent is 75 percent or higher. The
treatment coordinator should be informed of
the benchmarks and track their performance
daily, monthly and year-to-date. The KPI
format can also be used to evaluate a practice
for purchase. It is an excellent way to assess
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Table of Contents for the Digital Edition of Orthotown April 2018
