Click here to enlarge imageTo have a return on your initial investment of $60,810, you will need to generate $148,317 in additional production. Now that you have a statistical interpretation of success, you can analyze your investment. Ask yourself:
1Is this $148,317 in additional production feasible to accomplish in one year? Two years? Ever? Not every investment brings a monetary return. Some may simply enhance your practice environment. This is fine, but still calculate the ROI to make an informed decision.
2How will the new investment support the increase in production? Will the investment directly increase production? Your new computer system may increase production through efficient scheduling, time-saving digital X-rays, faster information-recording, improved relationship with patients, treatment acceptance, and clinical efficiency.
3 What systems or behavior changes need to occur to reach the ROI? It’s people who make results happen and reap rewards, not the purchase by itself. Prioritize with your staff the changes which need to be implemented to ultimately get a return on investment.
Amy Morgan is chief executive officer and lead trainer of Pride Institute, a national dental-management company which provides consulting services, educational seminars, patient charting, and staff training materials. To ask Amy a question for this column, visit “Ask Pride” at www.prideinstitute.com or call Pride Institute toll-free at (800) 925-2600.