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Factors That Drive Endodontic Revenue Growth 

July 19, 2023
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 By Debra Miller, Former Director of Coaching​​​​​​​ 
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If you’re trying to stimulate revenue growth in your practice, focusing on the right factors that drive growth is essential. Here are the major drivers that should be the foundation of any growth strategy.​​​​​​​

On a per-doctor-per-day basis, collections in different endodontic practices vary significantly.

Every figure in this article is collections, meaning money actually received, not production billed.

At the low end, some doctors generate $2,000 to $3,000 per day on average. The typical endodontist brings in $3,000 to $5,000. Across 180 working days, the typical practice collects roughly $540,000 to $900,000 a year, and the low end lands closer to $360,000 to $540,000.

Meanwhile, highly productive doctors average $10,000 a day or more. On the same 180 days, that is $1.8 million a year.

The gap between those two practices is rarely clinical skill. It is almost always how the day is built.

Endodontic practices largely operate on a fixed cost basis, with the vast majority of expenses incurred regardless of how busy or productive you are. That means differences in collections primarily affect the doctor's take-home income. A doctor who completes 6 cases per day on average does not have twice the expenses of a doctor who completes 3 cases per day. In fact, the more productive doctor may have expenses that are at most 10% to 15% higher, but their take-home can be 2 to 3 times as much.

So for every $1,000 you add to collections, roughly one more completed case depending on your fees, you will likely add $900 or more to your bottom line.

One more case a day, across 180 days, is over $160,000 in additional income. Two more cases a day is over $320,000. For a doctor currently running three cases a day, that is more than doubling take-home income.

The $900 figure surprises doctors who know their overhead runs near 50%. Both figures are correct. They describe different things.

Your overhead percentage tells you what the average case costs to deliver, because every case carries its share of rent, imaging, equipment payments, insurance, and base staffing. The next case carries almost none of that. Those costs are already paid whether the case happens or not. What the additional case actually costs you is supplies and a little more of your day.

That is why the second half of a well-built schedule is worth so much more than the first half.

This holds until you run out of capacity in the schedule you already staff. Once the day is genuinely full, another case means another staffed hour, another room, or another day, and the share that reaches your bottom line falls back toward your average. The doctors who capture the most from this are not the ones adding days. They are the ones who find the unused capacity already sitting in the schedule they are paying for.

Cases per day

Because of endodontics' fixed-expense model and the fact that most cases fall within a relatively defined fee range, the number of completed cases is the primary driver of practice collections. This is different than a GP practice, for example, which can have cases that range in value from a few hundred dollars to tens of thousands of dollars. As a result, GP practice growth strategies are usually focused on case values rather than the number of cases.

Growth in the endodontic practice always begins by focusing on increasing the number of cases completed. More than anything else, it drives your financial results, both collections and take-home, in a nearly linear relationship. So increasing your cases per day means building a broad-based referral network in your community, making it as easy as possible for GPs to refer to you, and staying in front of them consistently so that you are always their preferred endodontist.

Case types

While case values are relatively uniform in endo, there can be a big difference in how much time it takes for the doctor to treat the patient. Easy cases can require 30 minutes or less of the doctor's time from bur-to-tooth to final filling. Harder cases can take twice that time or more. So when you are getting more referrals for easy cases, it is easier to have a more productive day.

What is an easy case? Very often it is an emergency case, with the patient referred directly at the first sign of endodontic concern. Think of same-day emergency cases as growth cases that do two things. First, they quickly add collections to your day. Second, they build your relationship with the referring GP. The GP develops confidence that you will provide quick, responsive treatment to their patients, and they realize it is far easier to refer to you than to try to squeeze the patient into their own schedule and do the endo themselves.

Remember that a substantial share of endodontic treatment in the United States is still performed by general dentists rather than referred out. Anything you can do to tip the balance in your favor is going to substantially increase the number of referrals. Since referrers are probably already sending you the harder cases they do not want to deal with themselves, increasing the number of referrals from a GP will likely result in more easy cases coming your way. That is a recipe for very productive days.

Fees

When it comes to fees, in terms of absolute value, there can be significant differences between practices. This can be driven by regional factors and, most often, by insurance factors. Most insurance company fee schedules are poor, and the practice absorbs the difference.

Every practice should focus on their office fee schedule first. When you consider that hotels adjust prices seasonally, gas stations adjust prices daily, and airlines adjust prices in real time, it is more than reasonable that you adjust your fees at least annually. Otherwise you are going to fall behind. If you have put off fee increases for more than a year, you are undervaluing yourself.

A delayed 5% fee increase costs the typical practice $27,000 to $45,000 a year. That is a free case given away every week or two.

When it comes to insurance fees, the only reason to participate in a plan is that the trade-off of patient flow in exchange for discounted fees is worthwhile. When you think about it, that is a marketing decision more than anything. The best antidote for insurance fees is building your referral network and reputation so that you do not need to participate in every plan under the sun, or at least not in the most discounted plans with the worst insurers.

Scheduling

Where productivity actually lives and grows is in your practice schedule. A lot of doctors get stuck in a certain way of scheduling that discourages growth. Even if growth were possible, an inflexible, non-adaptive scheduling approach dampens and suppresses potential improvements. For example, some doctors routinely schedule two-hour windows for every case whether that much time is needed or not. That makes for a four-case day and nothing more, and growth cannot happen beyond that level without a better scheduling approach.

In order to grow, you have to create room in your schedule for growth, including cases scheduled in advance as well as same-day growth and emergency cases. This is a team effort that can involve restructuring your patient appointment flow, enhancing delegation to your dental assistants, and streamlining clinical focus, efficiency, and daily flow.

A lot of doctors mistakenly think that increasing productivity is going to result in more stressful days. That is not the case, especially with Endo Mastery's systems. Elevating practice teamwork for appointments and scheduling actually simplifies the day for the doctor. They are better supported, and their time is used more productively and more enjoyably as a clinician. We have many clients who tell us how surprised they were that their days after growth, at higher productivity, are easier than their days before it at lower productivity. The day gets easier because the systems carry more of it, not because the doctor pushes harder.

Coaching for predictable growth

What we do at Endo Mastery as coaches for endodontists is streamline and accelerate the growth process while optimizing every connected element in the practice, including the team. It is collaborative, and Endo Mastery coaches take the guesswork out of growth. You are not going to waste time and energy on strategies that will not work in your practice.

Our team focuses you on a tested, proven, systematic approach, built over three decades and refined across hundreds of endodontic practices. Growth stops being something you hope for and becomes something you can predict.

Most doctors are surprised by how much capacity is already sitting in the practice they have. The first step is finding out where yours is.

Start with the Endo Practice X-Ray, a straightforward look at where your numbers stand today. If it makes sense to go further, book a discovery call and we will walk through what growth would actually look like in your practice.

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