Dear Dentist, What Is Your Time Worth?

I once engaged in a conversation with a dentist who said he spent 3-hours a night trying to keep his patched-together computer network running. He had twelve used computers daisy-chained together running Windows XP and he said he struggled every day to keep the system from crashing. I asked him if he minored in Computer Science at dental school. Incredulously he replied, "Of course not!" So I asked why he was wasting his time trying to learn how to keep his system operating versus buying new equipment and hiring a professional to handle installation. 

His response, "Because I'm cheap." 

Assessing Your Time

This doctor made the mistake of failing to value his own time.  The average annual earnings of a general practice dentist is $175,000.  A traditional 40-hour per week job equals 2,080 hours per year.  This equates to an average hourly salary of $84.00, based upon a dentist working a full 40-hour week.  So why do dentists insist upon doing mundane tasks versus focusing upon production?  If the dentist’s response is indicative of the typical attitude, because they are cheap.  But are they?

The Cost of Your Team

An average small practice will have a receptionist, insurance/billing specialist, dental assistant, and a dental hygienist.  Some dentists may employ an office manager who doubles as the treatment coordinator.  What does this team cost?

•  Dental Assistant:  $15.00 per hour
•  Receptionist:  $12.00 per hour
• Insurance Specialist:  $15.00 per hour
•  Dental Hygienist:  $30.00 per hour

A traditional small-practice dentist may insist upon handling all the accounting, human resources, IT and office management while assigning employees to handle cleanings, sanitation, sterilization, answering phones, check-ins and inventory.

Valuing Your Time

The dentist in this example stated he was spending 15-hours a week fixing the office computers and network.  Aside from the risk he placed upon his practice when the computers fail and he loses practice data, he completely devalued his own time.  Fixing computers doesn't contribute to production or office income.

By reassigning the time the dentist spent on IT to production he could have been generating income while making himself more valuable to his patients.  Extending office hours by two-hours a day, a dentist can accommodate patients who cannot afford to take time off during traditional business hours.  The additional ten-hours per week could generate an additional $840.00 per week in individual income.  This equates to an additional $42,000.00 per year while reducing the hours spent after the office has closed by 50 hours.  A completely new computer network, with a server and back-up storage device, would cost about $15,000.00.

What is Your Team Worth?

Hiring a good practice manager to augment your dental office can ultimately increase your profitability.  This person would handle accounting, human resources, basic network maintenance, and treatment coordination.  Enhance your team and you will improve your practice.

Ultimately, being “cheap” will cost you profits.

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