Last week I talked about clinician revenue analysis and in previous weeks we have talked about 'a principal's percentage of gross' and adaptive selling.
This week I would like to introduce the surgery cost per day concept, of how to calculate your practices fixed expenses and how to monitor these carefully to make sure your practice expenses aren't running out of control.
My friend and mentor Chris Barrow would consider this to be the most important key performance indicator of any dental practice and he will call it operating surgery cost per day 'OSCPD'. This is calculated by dividing the fixed costs by the amount of sessions worked and the amount of surgeries available. It gives you an excellent indication of how much each surgery costs to open each morning regardless of whether any work is carried out or not and is a real eye opener when discussing with associates about the possibility of ludicrous things like 50% contracts etc to demonstrate to them how this doesn't work. It also allows you to calculate against the clinician revenue analysis sheet to see whether or not in fact your associates are losing you money (this is not an uncommon situation to encounter when this analysis is carried out). If this is indeed the case it's time to have a conversation with your associates about taking less of a percentage or moving along to somewhere else to lose that practice money.
These figures, combined with clinician revenue analysis and the overall budget for your practice, can be included on a single spreadsheet with different tabs. We have formats and outlines for this and in fact one of the exercises on the business course will be for individual practices who attend to construct their own finance sheet to allow them to monitor their own KPIs on an ongoing basis after leaving the course.
The Business of Business Course
This course is a year long business course with six two-day modules.
It is anticipated that Practice Principals will attend with their Practice Managers (although this is not exclusively the case).
The cost of the course includes a place for two people to attend with additional places available on separate modules for people with those skills within the practice.
The course includes access to an online discussion forum and four detailed online exercises to be carried out on a time limited basis. It also includes five working course dinners and a celebratory dinner, all at exceptional venues around Nottingham.
The cost of the course (inclusive of VAT) is £12,000.
If you’re interested please contact Tom Reason, The Campbell Academy Manager – 0115 9823919 | info@campbellacademy.co.uk
Blog Post Number: 1128
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