August 29, 2023
As a dentist who owns a private practice, measuring, understanding, and acting upon your practice's performance is crucial to achieving long-term success.
There are many metrics you should monitor at your dental practice. Today, we are discussing three key performance indicators (KPIs) that stand out for their direct impact on growth and profitability: Patient Retention Rate, New Patient Rate, and Case Acceptance Rate. For more information on KPIs, check out our March article, Optimizing KPIs in Dental Practices: A Strategic Approach.
Let’s dive deeper into each of these three KPIs and explore recommended actions based on their results.
New Patient Rate
The New Patient Rate measures the number of new patients your practice acquires within a specific period, generally one month. This KPI is a vital indicator of your practice's growth and the effectiveness of your marketing and referral programs.
A steady influx of new patients is crucial for growth, especially for practices looking to expand or replace patients who move or switch providers. A healthy new patient rate ensures a continuous revenue stream and the opportunity to build a loyal patient base.
- If the New Patient Rate Is Low:
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- Revamp Marketing Efforts: Evaluate your current marketing strategies and identify what’s not working. Invest in digital marketing campaigns, such as Google Ads, social media advertising, or improving your website’s SEO to increase visibility.
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- Improve Online Presence: Ensure your practice has a solid online presence with positive reviews. Ask your loyal patients to leave your practice a Google Review.
- If the New Patient Rate Is High:
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- Optimize Onboarding: Develop a seamless onboarding process for new patients to ensure a positive first experience. This could include welcome emails, patient information packs, and a smooth check-in process.
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- Focus on Retention: Shift focus to converting new patients into loyal ones by providing exceptional care and personalized follow-ups. Schedule follow-up appointments during the initial visit and give reminders to encourage continuity of care.
Patient Retention Rate
The Patient Retention Rate measures the percentage of patients who continue to visit your practice over a specific period, generally 12 months. This KPI helps gauge patient loyalty and satisfaction.
Retaining existing patients is typically more cost-effective than acquiring new ones. High retention rates indicate strong patient relationships, service satisfaction, and a stable revenue base.
- If the Retention Rate Is Low:
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- Enhance Patient Experience: Conduct patient satisfaction surveys to identify areas for improvement. Address common pain points such as long wait times, unfriendly staff, or poor communication. Invest in front-desk staff training to enhance customer service skills. Ensure each patient’s next appointment is scheduled before they leave your office.
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- Implement a Follow-Up System: Create a robust follow-up system to stay connected with patients. Automated appointment reminders, check-in calls, or emails ensure patients feel valued and cared for.
- If the Retention Rate Is High:
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- Leverage Patient Loyalty: Use your loyal patient base to drive referrals. Happy patients are more likely to refer others, so encourage them to do so through a structured referral program. Note that your referral program must align with the ADA Code of Ethics and all local regulations. The ADA code of ethics can be found here: https://www.ada.org/about/principles/code-of-ethics.
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- Maintain High Service Standards: Continue providing excellent service and engaging patients through personalized care plans and regular communication. Recognize and reward your team for maintaining high retention rates.
Case Acceptance Rate
The Case Acceptance Rate measures the percentage of treatment plans patients agree to proceed with after the dentist presents them. This KPI reflects the effectiveness of your communication and the perceived value of your treatments.
A high case acceptance rate is crucial for maximizing revenue opportunities from existing patients and ensuring they receive the necessary care. It also indicates trust in your recommendations and your team’s ability to communicate treatments' benefits and necessity effectively.
- If the Case Acceptance Rate Is Low:
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- Improve Communication Skills: Train your team in effective communication techniques to explain treatment plans clearly and compellingly. Use visual aids, such as intraoral cameras or digital imaging, to help patients understand their oral health needs.
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- Offer Flexible Payment Options: Make treatments more accessible by offering financing options or payment plans. This can help patients feel more comfortable accepting higher-cost treatments.
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- Build Trust and Rapport: Establish a strong rapport with patients to build trust. This could involve taking extra time to answer questions, providing thorough explanations, and ensuring patients feel heard and understood.
- If the Case Acceptance Rate Is High:
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- Maintain High Standards of Care: Continue to provide excellent care and transparent communication. Regularly review accepted treatment plans to ensure they align with patient needs and practice capabilities.
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- Upsell Value-Added Services: With a high case acceptance rate, consider promoting additional services or preventive care plans that provide value to patients and increase revenue.
Focusing on these three key performance indicators—new Patient Rate, Patient Retention Rate, and Case Acceptance Rate—can provide a view of your practice’s health and potential areas for growth. Simply monitoring KPIs is not enough. Consider taking specific actions based on the KPIs, and by doing so, you can attract more patients, retain them longer, and ensure they receive the necessary care.
Monitor these KPIs regularly and adjust your strategies to keep your practice thriving. Remember, the goal is to track these metrics and use them as a foundation for continuous improvement and success in your dental practice.
Not sure where to start? Contact us today!