The $100K Question: Key Investments to Build a High Tech Dental Practice

Friday, June 27, 2014

The $100K Question: Key Investments to Build a High Tech Dental Practice

At a recent dental convention, I had a great chat with some good friends Sirona. They mentioned they had a young doctor stop by their booth who was somewhat familiar with the technology their company had available. She had been working in a group practice, had saved up some cash, and wanted to venture out on her own.

After a few years out there, she had an opportunity to acquire a new practice and separately had saved up around $100K to invest in technology to set her practice aside from all others. The question was how to use that small investment to develop a unique practice, with a high-tech reputation. What systems, technology, or infrastructure should be acquired to be different than the “standard of care?”

 In the end, she felt CEREC technology would be one way to jumpstart her venture. 

This dentist’s question about what technology would set her new practice apart resonates with me because it really is about considering the public’s perception of parity service among all dentists. Stated another way, most people think that one crown in one office is the same as a crown you can get at any other office. The question becomes not how great you do on your crown, but how to make your practice stand out among other practices in your area.

So whether you are new, or have been in practice for 20 years or longer, you may find yourself wondering where your dollars are best spent on the technology that is out there. I’ve given this question a lot of thought and the following is my advice on how best to make an impact and how to be progressive in very basic ways that I believe can make your practice stand out.

Keep in mind, the point is not the technology. The point is not to bring in a bunch a high tech gadgets that will take your practice to the cutting edge, but force you to price your services and run your practice solely to keep up with your debt service. The point is to improve the patient experience. Apply that litmus test to any investment, and your decision will become clear, and you won’t have to increase your fees.

Now back to what got me started on this line of thinking, the $100K ready to be invested in jump starting a high tech dental practice. Here are my thoughts on the ways to use that money to benefit your patients, and while I am a big proponent of in-office CAD/CAM and chairside milling, that is not where I would invest the first $100K to build a new high tech practice.

  1. Digital X-Ray: Estimated startup cost - $12–20K
    There may not be a single piece of dental technology that can make an impact on your practice like digital x-rays. It impresses the patients, streamlines workflow and data management, makes patient communication easier, and reduces overall radiation exposure. You could have every other high tech bit of equipment in your office, but will still not be considered to be high tech if you are using film. One cost saving tip, don’t buy a sensor for every room. One will be plenty.
  2. Intraoral Camera: Estimated startup cost - $1–5K
    A picture is worth a thousand words. As a new dentist trying to gain trust from your patients, what better way to let them know about necessary treatment than to show them things from your perspective. As a tip for any clinician, spend the time to help patients understand their treatment needs. Talk through the pictures you take, ask them if they have any questions, and then actually listen for a response. 
  3. Flat Screens: Estimated startup cost - $2-4K depending on number of operatories
    Now that you have digital x-rays and an intraoral camera, how are you going to display the images to your patient: A 15” Dell monitor or a nice big Samsung HD display? Remember your investment should be a combination of achieving that high tech reputation as well as making things easier for the patient to see and understand.
  4. Practice Management Software: Estimated startup cost - $6-12K
    While the patients may not appreciate your practice management software directly, it is a hub for the entire practice to make your business flow. Plus, it becomes a huge source of data to add on third party functionality such as email reminders from companies such as Sesame Communication, or Demandforce, or enhanced phone systems such as Weave that mine your data for things such as unpaid balances or unscheduled treatment.
  5. Digital Panoramic X-Ray: Estimated startup cost - $28-40K
    I have yet to see a patient step into our digital panoramic x-ray machine and not be impressed by the technology or the resulting image it displays. This can be your new “FMX”, with a set of bitewing images and a panoramic image. It affords less radiation exposure for the patient, and takes a fraction of the time. If you see a suspicious root canal on the pano image, then you just take a single PA to zoom in.
  6. Diode Laser: Estimated startup cost - $2-5K
    Diode lasers have dramatically dropped in price in the last 4 or 5 years. The size of these machines has shrunk along with these prices. With a diode in the operatory you can do esthetic recontouring of gingival tissue, toughing to eliminate packing cord, add laser perio treatments to your practice, and more. Perform one laser frenectomy compared to a scalpel, and you will see how great a laser can be.
  7. Digital Impression System (without chairside milling): – Estimated startup cost - $12-30K
    If you have a little cash left in the bank, I would definitely consider a digital impression machine. This is definitely something that keeps up with the high tech theme in terms of practice efficiency and impressing your patients, but it’s a more manageable start up investment when compared to a system with a mill. Most systems now are faster than the fastest setting impression material, and I haven’t met a single patient who prefers having that stuff in their mouth when offered the option to have a digital scan instead. Plus, labs are often reducing prices or providing rebates when you submit a modelless digital case. With some companies offering an upgrade path to chairside milling, a digital impression system is a great way to get your feet wet with this technology.

Once you have integrated these things into your practice—and you can purchase almost all of them for that $100K in savings—you will be able to provide a basis for growth that can allow you to invest in future technologies. Now with that foundation, here is my brief list for the next level of high tech purchases: Cone Beam, Chairside Milling, and a Solea hard tissue laser. These technologies are more expensive, but all represent the future of dentistry.

Got an essential piece of equipment for your office? Any equipment tips for a new dentist? Drop a comment below.

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