THE NUMBERS THAT DRIVE RECOVERY
DEBRA MILLER, Director of Coaching
#Productivity #Recovery #Cases
What should your recovery goals be? In this post, follow a basic analysis of practice recovery losses and how those are translated into specific daily goals for completed cases in recovery.
Most endodontic practices lost significant revenues over the period from March to May. I think we can expect the summer months to be an improvement over that, but I don’t think we’ll be back to last year’s level.
It is a worthwhile analysis to anticipate your total losses as a result of the pandemic. Start by adding up your total practice collections for March, April, and May of last year, and subtract from that your total practice collections from March, April, and May of this year. The average doctor is going to see a difference between $150,000 and $200,000 dollars.
For this example, I’m going to assume the practice normally produces about $100,000 per month ($1.2 million per year), but only produced $50,000 per month during the pandemic closure months. That results in a total loss of $150,000 over the three-month period.
Next, project your losses for the next three months. Take your total practice collections for June, July, and August from last year, and multiple that by the percentage you expect to achieve this year. For this example, I’ll assume that this summer’s productivity will be about 75% of last summer. So that’s another $25,000 loss each month from June to August, totaling $75,000.
Combined, that’s $150,000 + $75,000 = $225,000 cumulative loss by September. You can, of course, adjust these to your practice and expectations, including considering a longer period than just to the end of the summer.
In recovery, your goal is not only to return to normal but also to recover your losses. So, even assuming you can be back to last year’s level by September, you have to do better than that in order to recover your losses within a reasonable timeframe. Otherwise, your losses become permanent.
In my example, a $225,000 loss is equivalent to 180 completed cases, assuming the average fee collected per case is $1250. Therefore, to recover losses within a year from September, you need to do at least 15 cases more per month than you normally do. That’s about one per day. To recover within 6 months (which is a much more appropriate timeframe), you need 30 more cases per month or about two more per day.
If you really want to be thorough, you also need to consider growth that would have normally occurred and build that into your recovery estimate. If my example practice expects to grow 10% in a normal year, that would be another $120,000 over last year’s revenues—96 cases per year, 8 cases per month, about half a case more per day.
That now puts us into the 1.5 to 2 cases per day range for a 12-month recovery and 2.5 to 3 cases per day for a 6-month recovery. Given that my example practice was only completing about 5 cases per day before the pandemic, adding another 2 to 3 cases per day now underscores the need for a very focused strategic approach in order to make a full recovery. You can’t do this by accident or by tweaking a couple of small things on your own.
Our entire coaching team at Endo Mastery has been working together for the last 3 months to address exactly this question: What do endodontic practices need in order to fully recover? That is our benchmark for success, and the result is our new Recovery Coaching program. Recovery Coaching is fully customized to your practice like our regular coaching program, and it includes all the essential Endo Mastery strategies to erase your pandemic losses as soon as possible and put you on track for incredible growth.
The Recovery Coaching program is a remarkable advancement for Endo Mastery, and we are committed to making it remarkable for you too. It’s a 6-month implementation program for you and your team to make truly powerful and effective changes under the guidance of your Endo Mastery Practice Coach. Plus, it is our most affordable coaching solution ever (at nearly a third the cost of our normal first-time coaching program) because we understand you absolutely need the best return possible on your investment during this time.
I invite you to give me a call at 1-800-482-7563 or email firstname.lastname@example.org to discuss your recovery needs.