4 Ways To Recession-Proof Your Dental Practice

About six months ago as I was flipping through dentistry journals, I saw the first advertisement using the “R” word: recession. It is easy for a dentist, as a small business owner, to get wrapped up in the drama of the news headline and mistakenly blame their practice problems on the economy. In my 30+ years as a dental consultant, I have certainly had an opportunity to hear about the ills that an economic downturn may create, and I’ve learned there are basic truths and ways to recession-proof your dental practice. Dentists who actively engage in their business can survive and (dare I say it?), prosper during any economic twist and turn.

Is dentistry recession-proof?

The most important of these truths is that dentistry is recession-, depression-, and any other type of financial disaster-proof. Why? Both functional and cosmetic dentistry is wanted and needed by many people, always. There will always be patients who want ideal oral health and have the wherewithall to pay. Dentistry, in contrast to medicine, is defined as “high frequency, low cost.” If we compare quadrant dentistry to how much an emergency room charges for a couple of Tylenol and an X-ray, the facts reveal themselves.

Most importantly, even if we currently are in a downturn, we’re dealing with the baby boomer peak population. The boomers (including me) are not growing old gracefully and are at their highest level of need when it comes to restoring function and maintaining aesthetic excellence as a tool for hanging on to youth. The bottom line is that there are patients out there who will want and pay for your services. It’s your job to find those patients, discover what they need and want, and then present dental solutions in a way that they can value and commit to.

Secondly, very often it’s the dentist’s decisions, made in panic, that create scarcity, chaos, and failure, not the situation itself. For example, the advertisement stressing the “R” word was promoting an item that a stressed dentist might purchase as a silver bullet for a bad month. It’s important to avoid making a purchase based on fear and without a plan. Without a consistent brand identity, a strategy with planned results, and, of course, a proactive focus on a return on investment, the chances of a panic campaign being successful are slim to none.

So, when the fear of scarcity is going on, what’s a dentist to do? There are four distinct, proactive actions you can take to recession-proof your dental practice and ensure continued success. By embracing and following these steps, no one ever must lose. Where do you start?

1. Know your numbers

Which numbers are most important to be aware of during economic slowdowns? It’s vital to know your regular active patient base — any patient seen for anything in the past 18 months, counted once— your new-patient numbers, your treatment presentation numbers, and the traditional production, collection, and expense numbers.

These dental practice statistics are essential so you can make informed decisions based upon sound strategies, not judgment. For example, if you believe that you need 30 new patients a month and are willing to spend $60,000–$100,000 a year to get them, how would you know when you’ve returned your investment? Are those 30 patients presenting the kind of dental needs that fit your practice’s vision and values? Are they committing to treatment, following through on financial arrangements, and referring others? If a dentist doesn’t know the answers to these questions, you could have hundreds of new patients but wind up producing less and realizing no real ROI.

2. Know your patients

There’s nothing worse than a dentist diagnosing a patient through their pocketbook. The only way a practitioner can find out what motivates and concerns patients is to ask questions and exhibit empathy. By getting to know your patient in this way, you can create a treatment plan and accommodate their needs.

Sometimes it’s important to acknowledge a regional issue. Many of our dentists who’ve experienced regional economic downward trends have sent out what we call “state of the nation” letters as a proactive marketing tool. These letters assure patients that their dental office will always deliver the best clinical care and address the economic obstacles by offering flexible financial arrangements so ideal dentistry is always affordable. Your relationship with your patients is the strongest goodwill you possess. Patients who like and trust you will always rise above financial concerns to achieve the optimal oral health.

3. Adapt your systems

Some dentistry, like cosmetic dentistry, may be completely discretionary but the same patients will still agree to functional or basic oral health necessities even in an economic downturn. Adapt your systems to tap into this market. Instead of targeting 12 full-mouth reconstructions per year, a practice may need to do 24 $3,000–$5,000 cases instead. A flexible dentist may need to change their marketing, new-patient screening, and new-patient process or treatment presentation for patients of record to address the concerns of the day. Financial arrangement systems may need to become more flexible, and insurance processes may need to become more efficient. Address these issues early, instead of when you’re knee-deep in the commotion of goals not being met.

4. Stay the course

Finally, but most importantly, stay the course. The good news for dentists is that while a restaurant or retail store can fail when the economy shifts, when you do the right thing for the right patients, you will flourish and prosper. A bad month does not mean a bad year. Three patients who say “no” don’t mean the fourth patient won’t say “yes.” Your goals and your strategies, if they’ve worked in the past, can work again.

So don’t hit the panic button. By reengaging with your business, knowing the numbers, adapting your systems, and staying the course, you can recession-proof your dental practice and never fear the “R” word again.