So how do you know when it’s time? While there are many possible incentives for expanding – the desire for a more ‘modern’ facility or a different location, for example – there is one that should not be ignored: when your potential for production is being limited by your facility.

Consider these hypothetical examples:

Hygiene limitations: A practice has three operatories, two for the doctor and one for the hygiene staff. The four-day-per-week hygiene schedule is booked out four months in advance. In order to add more hygiene time, one of the doctor’s operatories would have to be used. What would you do? How long are your patients willing to wait?

New patient limitations: How long are new patients waiting to be seen in your practice? Remember, for most patients it is an important decision to pick up the phone and call for their new patient exam. Having made this commitment, how are they going to feel if they have to wait six weeks or more for their first appointment?

Necessary treatment limitations: Your team has made a considerable effort to educate “Mr. Jones” that he needs significant dental treatment. Mr. Jones has decided to proceed but has now been told there are no open appointments for five weeks. He is very concerned, and also confused about the delay in starting his treatment.

What about the additional expense? Of course a new facility may incur additional up-front expense, but it is a mistake to focus on expense only. You must also look at the potential for growth. For example:

  1. A practice’s hygiene department is working 200 days per year, producing $1,000/day. Hygiene production = $200,000/year.

  2. The hygiene schedule is booked out six months in advance. An analysis of the number of active patients indicates the practice could easily support 1-2 additional days of hygiene per week, if the facility were large enough.

  3. The potential for additional hygiene revenue to help offset the cost of higher rent or an increased mortgage is as follows:

    1. 1 day per week x 4 days/month x 11 months* = 44 days x $1,000/day = additional hygiene revenue per year of $44,000.

    2. 2 days per week x 4 days/month x 11 months* = 88 days x $1,000/day = additional hygiene revenue per year of $88,000.

*Assume the practice is closed for vacation/CE one month per year.

Don’t forget the ‘ripple’ effect
The ‘ripple effect’ also needs to be considered when looking at a facility expansion: because the hygiene department is seeing more patients, the potential to earn additional restorative fees also increases. More doctor diagnoses multiplied by more patients equals another potentially significant source of increased production!

Statements of opinion not necessarily endorsed by ADA Member Advantage, ADA Business Enterprises, Inc., or the American Dental Association, or any of its subsidiaries, counsels, commissions, or agencies.