Snake 5 year plan.indd

Cover


Our Vision & Purpose
Our wish for you, your children and family is to achieve the goal of never needing dental work inthe future.
Our purpose comes from the derivation of the word “doctor.” It comes from the latin word docere, which means “to show, teach or teach to know.”
We help achieve this goal of “teaching” with hygiene visits twice a year...a goal that can eliminate gum disease and future dental work for a lifetime.
This goal is our sincerest wish for you, your children and fmily!


Table of Contents
Purpose & Vision 4
The 4 Focal Points to Transition
The Different Parts of the Advance Hygiene Program
The Hygiene Coordinator Set up & Training
The “Math” to Achieve Transition 10 The Contact Point for your Program 14 Summary & Conclusion
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7 8
18


The Transition: Purpose & Vision
Doctor’s write up....his/hers own wording which comes from the questionnaire that we send them.
Photo of Doctor Taken from Website
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Achieving Transition:
Transition has many definitions. Whatever description or definition you choose, the
end result is more free time, more freedom with family, hobbies and travel. Most importantly, transition removes the “silent handcuffs” while maintaining an income stream without being chained to the 8 x 10 operatoreis f year after year. This is acheived


The 4 Focal Points to Address
1
Loss of New Patients from Low Call Conversion
The invisible loss of new patients calling for prices is a focal point to control as this increases both the number of new patients as well as overall monthly and annual income. Every new patient, across the U.S. walking into a dental office has an ATV (average transaction value ) close to $2,000. Lose 4 to 5 price shoppers per month and the annual loss is in excess of $100,00 per year. Objective: 80%+ Call Conversion
2
Lost Case Acceptance
The single most valuable activities to increase case acceptance, are 1) team effort, training on the laws of sales an case acceptance, and 2) Retention/Recall: over 52% of all patient files across the U.S. have incomplete dental work...recoverable with a retention and loyalty system in place. Objectives: Sales Training on Case Acceptance & Patient Retention.


3
Over the years, the loss of Hygiene Revenue is in the millions. The Hygiene Department is its own revenue center, just like operative. It must have an individual in charge of this department. The department will otherwise, not grow and your program will be a waste of time and money.
Objectives:
1. A person single-hatted in charge of the department 2. Increase the daily hygiene production
3. Increase daily hygiene production
4. Increase # of days of hyigene
4 Overhead Control: Reducing Lost Income
As revenue increases the “normal” outcome is “no more income in the pocket of the
doctor.” Benchmarks, or standard overheads percentages need to be monitored:
Over 90% of Patients are
Lost out the back door = No Hygiene Growth
Objectives:
1. Payroll: 23-28% 2. Supplies: 4-6% 3. Lab Fees: 9-10% 4. Rent: 6-11%
5. Utilities: 1-2%
6. Misc expenses: 4% (cleaning supplies, service, etc.) 7. Marketing/promotion: 5-10%
8. Equipment amortization/upgrade/replacement: 3%
Total Overhead Objective: 60-65%


The Different Parts of the
Advance Hygiene Program


The Parts of the Advance Hygiene Program
The Advance Hygiene Program has different parts. Each part of its own are quite simple for implementation. The following illusrations depict, in image form, each element or part of the program to achieve the objective of transition.
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Placed in each operatory as a set
Placed in each operatory as a set
4 feet wide by 3 feet high: Placed in Reception


B
The New Patient Experience Center
The New Patient Retention Mailers are a “System.” A system that makes a new patient experience remarkable...with multiple, aesthetic contacts each year.
This is how the New Patient Retention Mailers work! Your office receive a Retention Mailer Kit which includes all the bins and instrucions on how to set it up in yoiur office.
How it Works & Why
On the following pages is an explanation of how and why the New Patient Retention System works.
The system acheives a “remarkable experience,” a proven fact of the underlying elements to make any business contagious...or “go viral.” This is in fact, is what preciipitates the lowest cost of marketing available...called, word-of-mouth referrals.
12 bins for Birthday Mailers
5 bins for Welcome Letter & 4 Seasonal Mailers
5 “Supply Bins” for Welcome, B’day and 4 Seasonal Mailers


A Remarkable 1st Experience...The Crafted Welcome Letter
Each New Patient Retention Mailer is crafted with a repetitive educational message
of “Wellness” and warmnest. The repetition of purpose of paramount to changing behavior to bring about a returning patient! The below welcome letter is a sample... each retention mailer has an iconic quote...which creates word-of-mount to bring about a contagious patient base of referrals.


Putting a “System in Place” to Create Loyalty
The Hygiene Coordinator goes to the "bins" and pulls out a blank mailer for the Welcome, birthday mailer and each of the seasonal campaigns (i.e., Holiday, New Years, Spring and Summer).
The address of the new patient is placed on each seasonal mailer and placed in the “Quarterly Bin” to be mailed in the appropriate month.
The Hygiene Coordinator takes the “Welcome Mailer” and drops it in the mail the same day the new patient comes to the office.
Objective: An increased patient experience to raise referrals and increase patient retention/recall.
• New Patient Welcome Letter
• Happy B’day mailer sent in the month of their birtyhday
• End of Year “Happy Holiday” mailer (end of year use it or lose it) • Spring and Summer mailers


The Reception Video Loop...Increasing the Average Transaction
Most offices have “cooking shows” or similar in their waiting rooms a convenience for their patients. However, every CEO and CFO (corporate finance office) in business work to increase the average transaction value of their consumers.
The “Starbucks Story”
How did Starbucks increase their ATV from $0.65 - $0.075 to over $6.00? This dramatically increased their stock and revenue by over 10-fold. How was this accomplished?
How did Starbucks increase their ATV from $0.65 - $0.075 to over $6.00? This dramatically increased their stock and revenue by over 10-fold.
How? They simply added a “window” with pastries and a rope everyone had to stand in while “waiting to order their coffee.”
As people stood in line to get their coffee, they had to look at these tasty pastries: cinnamon-raise bagels, cake pops, breadfast
C


sandwiches, protein snacks, Ethos water, etc. As the people waited, they picked up “this item and that, and when they arrived to the cashier to order their coffee, the average transaction was over $6.00. Brilliant. The same for Toyota. You want the “big rims” or the “leather stitching on your seats, or, or, or...those are all done to increase the ATV .
Where’s the “Starbucks Window” in your office? Thus, the Reception Video loop...that is branded with you logo, and shows every patient in reception your services to raise the ATV!
Patients wait in reception an average of 7 to 18 minutes in practices across the country. Your best promotional action to educate patients on your services. The average practice has over 350 - 450 patients a month going through reception.


D
The Hygiene Coordinator: Hygiene Progress Board
This “part of the program” is vital to success. Foremost, the success of the program is dependent on knowledge and understanding of the Department of Hygiene. This is critical for the owner, office manager, Hygiene Coordinator and hygienists.
Establishing the Hygiene Coordinator
The following diagrams below give a concept to establish the Hygiene Coordinator. Keep in mind, this department, controlled and run with administrive forms, produces revenue well in excess of $500,000-$1M on up per year. The hygiene department is its OWN REVENUE CENTER. Thus, it is critical to establish and train to bring about steady growth.
Hygiene Progress Board For Training & Stat Progress
Retention Mailer System
Training Materials


E
Reactivation: Database Mailers to Your Existing Patients


E
Your Geofence and Community Ownership


The Math to Accomplish Transition


Residual Hygiene Business Model
The most important aspect of the 5-Year Expansion Plan is implementation of a residual based business model. Dentistry has a unique factor within the Hygiene Department that affords scalability and revenue growth by use of a disciplined recall system.
The analytics below give a projection, based on current experience, of revenue growth by building Adriatic’s Hygiene “Wellness” Program.
To explain this growth factor a few industry metrics (analytics) have to be known.
The following benchmark production and revenue statistics come from three
separate sources of research: The American Dental Association, Dental IQ and Dental Economics. The hygiene metrics come from rdamag.com, an online hygiene industry metrics and research membership webite. Separately, the metrics are futher validated from Hygiene Diamonds, owner is Ms. Wendy Briggs, RDH and consultant for more than 20 years.
Hygiene Industry Metrics
Average Daily Hygiene Production
$1,500
200 $300,000
# of Days Worked per Year by Dental Hygienists
Annual Hygiene Revenue from 1 Full Time Hygienist
Each full time hygienist (working an average of 4 days/week, 50 weeks per year) will generate an average revenue of $1,500 per day X 200 days per year = $300,000.
The daily revenue production is based on a combination fee for service and PPO practice. If the practice contains HMO patients, the daily production reduces to an aveage of $1,100 to $1,250. Adriatic Dental has no HMO patients and is primarily fee for service/PPO.


Residual Hygiene Dept: 5-Year Revenue Plan
Adriatic Dental, 2 years ago averaged 4.5 to 5 days per week of hygiene. This department of hygiene has grown to 8 days per week of hygiene with employed hygienists that work 11 days a week.
The most recent hygienist will add an additional 3 days of hygiene in the next 6 months.
The Expansion Plan
The Expansion Plan is based on raw factual numbers represented by the number of New Patients per month. Adriatic is current acquiring an average of 62 New Patients per month for the past year.
2017 New Patients per Month Chart
Projections
The following pages illustrate the growth projections based on Adriatic’s historical new patient flow, the average production and metrics from the dental industry.


Scaling the Hygiene Department Revenue
To follow the below revenue chart: The average visits for a patient is 2X per year for cleanings and annual exam, and the average patients seen per day by the hygienist is 8/day. While the chart shows one month of new patients over a period of 1 year, this occurs every month of the year.
Each month 7.5 days of hygiene are generated from 62 New Patients per month. There will be a 40% loss of patients over time, which is shown in the calculation. 7.5 days of hygiene in January results in 4.5 hygiene days in June and next January.
Revenue Growth 2018
62 62 62 62 62 62 62 62 62 62 62 62 62
Average Patient Visits the Hygienist 2X/year for Cleanings & Annual Exam
Average Hygienist Sees 8 Patients per Day
Jan June
New Hygiene Days 7.5 40% database loss
Jan
New Hygiene Days 7.5
New Hygiene Days 7.5
40% database loss
4.5
4.5
4.5
7.5 Hygiene Days Added
12 Hygiene Days Added
16.5 Hygiene Days Added
2020
2021
2022
2023
2024
1 Full Time Hygienist Added 2 Full Time Hygienist Added 3 Full Time Hygienist Added 4 Full Time Hygienist Added 5 Full Time Hygienist Added
$300,000 $600,000 $900,000 $1,200,000 $1,500,000


Practice Growth & Revenue Projection
The practice growth revenue projections are based on solid metrics of building a hygiene retention “Wellness Center.” Adriatic has already put in place a single Lead Hygienist who is in charge of the entire Department.
The below bar graphs give a growth pattern for 5 years. In 2019, or possibly earlier, Adriatic Dental will add a full time associate doctor. In 2019, the volume of recall patients returning in the hygiene center will require the primary doctor’s time.
Not to mention, that when a retention program is put in place, over 60% of the patients returning have incomplete dental work due to finance and time constraints. This precipitates a “spill over” of patients into the operative department for additional treatment. As such, a 2nd full time associate is required to handle the growth.
5-Year Growth Chart
= Associate Revenue (2nd full time doctor):
Annual Practice Revenue from Associate = $25,000/month = $300,000/year
4.7M
4.3M
4.0M
3.6M
2.7M
3.0M
2 FT 3 FT 4 FT 5 FT Hygienists Hygienists Hygienists Hygienists
6 FT Hygienists
2020 2021 2022 2023 2024 2025