Pacific Coast Society of Orthodontists Bulletin Spring 2018 - 52

Presentation Summary

Administrative Staff

Elevating Production and
Lowering Overhead
Dr. Morvarid Emamy
A.T. Still University of Health
Sciences, Arizona School of
Dentistry & Oral Health

Presented by Ms. Edwina Wood at the PCSO
Annual Session, Oct. 13, 2017
Money is a touchy subject. There are a wide variety of ideals and beliefs about how to spend and
save money. Perspective is key. To elevate our
success to new heights, we must evaluate our
money management skills.
Overhead is the ongoing cost of running a business. According to the Journal of Clinical Orthodontics, a range of 48% to 54% is acceptable for
orthodontic practice overhead.

Ms. Edwina Wood
Consultant and Office Manager,
Harwell & Harwell Orthodontics,
Amarillo, TX

 Develop a budget: list three to five changes
that will help you reduce your current overhead.
 Plan your work, and then work your plan.

Key Indicators for Success
Staff expense should represent 18% to 24% of
revenue. For every $200,000, you should have one
staff member.

 Do not overlook the value of a good employee;
they are among your most valuable assets.
 Unproductive employees can be destructive to
the staff; one negative attitude can bring
down the productivity of your whole team.
 Make sure you monitor the process when you
replace a staff member.
 Review the contributions of your staff members: all employees should be producing at
their highest levels.
 Hire the right people: attitude is of utmost
importance.
 Set a 90-day probationary period. Do not compromise; make sure the person is the right fit
for your practice.
Facility expenses should represent 5% to 9% of
revenue.

 Image is important, but patients do not want
to get the feeling that they are paying for your
expensive taste.

 Use your office more efficiently. If you see
patients three days a week, would it be feasible to lease the office out for the remainder of
the week?
Orthodontic supplies should represent 8% to 11%
of revenue.

 Are you being charged for shipping and handling? Are you being charged tax? Know your
laws and regulations.
 Ask: Where is the price break? Do suppliers
give quantity discounts? What incentives are
offered?
 Ask for ideas from your sales reps. Watch every
product that you buy and let your staff know
how much each item costs.
 Educate your staff. Get everything the doctor
needs before you glove up.
 The site www.marislist.com features over 75
vendors, a membership portal, coaching for
you and your team, and a Facebook platform,
where peers can guide you.
 Make sure each product will provide you with
an edge before you commit to purchasing it.
 Know your inventory: review it monthly or bimonthly. Try to order once per month and no
more than twice per month. Shipping and
handling is charged on every order. Your time
is valuable: save it.
 Return for credit unused stock that is no
longer being used in your office.
 Lab expenses: Would an in-house lab be more
cost effective?
Indirect overhead should represent 8% to 10% of
revenue.

 These expenses include continuing education,
credit card bills, phone bills, and postage.
Don't be a penny pincher, e.g. someone who
makes cuts that make it harder to get and
keep patients. Be a penny saver- someone
who eliminates double billing and mis-billing,
and ensures his/her practice gets the best
prices and the best rates possible.

PCSO Bulletin  Spring 2018

http://www.marislist.com

Table of Contents for the Digital Edition of Pacific Coast Society of Orthodontists Bulletin Spring 2018