Orthodontic Trends – Page 4 – Bentson Copple Blog

2nd Quarter Edition of the Bentson Clark reSource Now Available

The second quarter 2013 edition of the Bentson Clark reSource is now available. Each quarter, the Bentson Clark reSource orthodontic newsletter analyzes and examines the most current issues and concerns within the orthodontic industry. We feel that this quarter’s publication features a vast array of articles targeted towards all orthodontists, regardless of practice size or career stage. Here’s a brief overview of the articles that are included in the latest quarterly issue:

Does Your Practice Overhead Rate Compare?
By: Chris Bentson & Doug Copple
Orthodontic practice owners use a variety of business models to manage and operate an orthodontic practice, demonstrating that one size or strategy does not fit all. This article, and two future articles, will present data on the average orthodontic practice overhead, allowing owners to gain a sense of not only the averages, but also the rate or change in certain expense categories over the last five years.

Let’s Play: Engage Patients Through Social Rewards, Contests & Gamification
By: Brenda Ashwell
Patients today are very different from the patients of yesteryears. Many have never known a life without technology. Social networking, video sharing and online gaming are fixtures of today’s culture. Not surprisingly, marketers recognize the essential role games and contests play in driving customer incentive and loyalty. There’s even a word for the attempt to influence behavior by engaging participants in fun activities, “Gamification.”

The Balancing Act…It’s Simple – Part 5 of 5
By: Maria Bailey
The search for simplicity and balance includes simplifying one’s life, growing spiritually and just feeling good. For moms, this means finding solutions to handle tasks, from the occasional to the everyday variety, which ultimately adds more time in the day. This “found” time is the most valuable currency that mothers possess in today’s fast-paced world. Moms value time so much that they seek ways to do tasks more efficiently and in a simpler manner.

For What It’s Worth
By: Mary Kay Miller
Does the Internet factor into the buying and selling of a practice? In today’s tech-savvy digital society, 85% of consumers go online to research before making a buying decision. With a statistic like this, a page one web presence in local search can make or break the transition from one business owner to the next as it relates to new business in both the short and long term when marketing a practice.

An Enforceable Non-Compete Covenant: We’ll Know It When We See It
By: Daniel Sroka
Non-compete laws vary; however, if there is a predominant legal standard used by courts to evaluate whether or not a non-competition covenant is enforceable, it is something akin to the infamous Supreme Court proviso: “We know it when we see it.” Almost every published decision addressing non-competes includes a statement along the lines of “courts generally disfavor non-competition covenants.” Therefore, you should look askance, at anyone who states that any particular non-competition covenant is ironclad.

Increasing Word-of-Mouth Endorsements By Embracing New Technology
An Interview with Dr. Robert A. Miller
No television or radio spot, magazine spread or direct mail piece consistently has the credibility and power of persuasion of a direct personalized endorsement. Word-of-mouth encompasses much more than it did just a few years ago. Social media along with consumer opinion-driven online sites such as Yelp and Angie’s List, have revolutionized the way consumers share experiences of goods and services, including orthodontic practices.

Gaidge: Why to Consider this Tool to Help Manage One’s Practice
An Interview with Katie Odegard, Account Executive at Gaidge
It’s been two years since we last spoke with Gaidge (formerly OrthoMetrics) and it’s time for a much awaited update regarding this innovative analytics tool. It is increasingly important for doctor/owners to improve their level of sophistication with regard to analyzing practice performance, and Gaidge provides data and knowledge of critical operational and financial metrics to allow for quick and better decisions.

Click here to read a sample version of the 2nd quarter 2013 reSource. Not a subscriber? Be sure to subscribe today by visiting our website.

Be A Lifetime Learner

Last weekend, Doug Copple and I (Chris Bentson) attended a study club meeting held in Atlanta, GA. The meeting was a two-day affair hosted by a nationally-known orthodontic consultant which brought together about 30 practices. This year’s meeting revolved around the theme of marketing.

To get the meeting started, a tour was arranged of a local fast-growing orthodontic office that is currently incorporating a number of very new, fresh ideas. Next, a list of topics to be discussed during the event was created by the meeting’s attendees via an open discussion forum. Overall, the meeting was focused and solely centered on discussing ideas to raise the level of performance and service in each practice represented.

All in all, it was an enormously educational experience for all attendees, including myself. I came away with several key thoughts. Foremost, in order to run a successful enterprise you must commit to becoming a lifetime learner. The orthodontic marketplace is continually changing (the meeting discussed consumer and competition changes). Keeping up with these shifts require effort to study and learn how to adapt one’s business. I was also reminded that practice ownership takes a great deal of work and determination. We all can learn by sharing ideas, taking the risk to ask questions and be open about one’s successes and failures.

Every orthodontist was an exceptional student during his or her formative years. We all know that practicing doctors commit to the standard requirements for continuing education. However, not all continue with a genuine thirst for knowledge and desire for new ideas. If you feel stale, stuck in a rut, upset about the condition of your practice; pause for a moment. Ask yourself if you’re really still learning about running your business and considering new clinical ideas. The practices we see that are vibrant, growing and thriving are being operated by “lifelong learners” who are continually trying new ideas to achieve growth and excellence in all areas of practice life.

Big Shift in Patient Demographics: Does it Matter to You?

In December 2012, the United States Census Bureau released its long-term demographic projections. It revealed a fundamental shift in the US population among various ethnicity groups. The released projections included the following findings:

By 2043, the non-Hispanic White population will no longer make up the majority of Americans.
Intermarriage for first- and second-generation Hispanics and Asians is on the rise, causing a blur in racial and ethnic lines and increasing the number of individuals who identify themselves as multiracial.
Children of immigrants are the fastest-growing demographic group.
Moving forward, the United States will become the first major post-industrial society in the world where minorities will be the majority.
Among children, the point when minorities become the majority is expected to arrive much sooner, in 2019.

What are the implications for orthodontic practice owners? It likely depends on how much longer you plan to practice. If you are at the beginning of your orthodontic practice career or envision working for 30 more years, the implications of the minority friendliness of your practice, your market strategic and target marketing will be significant.

In 2012, for the first time, racial and ethnic minorities became a majority of babies under age one for the first time in United States history. Ten years from now, this group will be the majority of children in braces.

Perhaps it’s time to step back and ask, “How minority friendly is my practice?” That is a good starting point to begin thinking about and planning for the changing patient demographic that could be your practice’s reality in ten years.

Bentson Clark & Copple’s Resident Survey

We spend a lot of time and effort working with today’s orthodontic residents. We visit their residency programs, attend events solely catered towards the resident community and participate in resident-only webinars and presentation opportunities. We spend numerous hours speaking with them as they search for an orthodontic practice to purchase and/or employment opportunities. We are focused on actively working with and providing as much information as possible to them to help them make educated decisions about their future. This group of young professionals will ultimately shape the future of the orthodontic industry.

As part of our commitment to providing relevant, accurate and useful data to the orthodontic community, each year Bentson Clark & Copple conducts a nationwide survey of all current orthodontic residents for the purpose of collecting, compiling and analyzing information regarding today’s orthodontic resident population.

As in our previous surveys, we ask a variety of questions regarding residents’ anticipated plans after completing their residency program. The survey also inquires about income expectations, geographic locations, total educational debt, and preference of whether they would seek an employment relationship or equity opportunity upon graduation.

We have published a brief sampling of the 2012 Annual Orthodontic Resident Survey’s results in the 4^th Quarter edition of the Bentson Clark reSource. We have, in addition, compiled the full results of this year’s survey in booklet form featuring our commentary and a comparison of this year’s data to that of the previous two years. This publication will be available for purchased within the next few weeks. Please check our website and blog for additional information and purchase information.

4th Quarter Edition of the Bentson Clark reSource Now Available

The fourth quarter edition of the Bentson Clark reSource is now available. Each quarter, the Bentson Clark reSource orthodontic newsletter analyzes and examines the most current issues and concerns within the orthodontic industry. We feel that this quarter’s publication features a vast array of articles targeted towards all orthodontists, regardless of practice size or career stage. Here’s a brief overview of the articles that are included in the latest quarterly issue:

From The Mouths of Orthodontic Residents
By: Laura Overcash
Bentson Clark & Copple spends a lot of time and effort working with today’s orthodontic residents. We are focused on actively working with and providing as much information as possible to them to help them make educated decisions about their future. It is once again time to share this year’s annual resident survey results. The survey inquired about income expectations, geographic locations, total educational debt, and preference of whether they would seek an employment relationship or equity opportunity upon graduation.

Solving the Orthodontic Sudoku Puzzle – Part 2
By: Debbie Best
Just as a precise combination of numbers is required to solve a Sudoku puzzle, orthodontic practices must have detailed systems in place that are closely integrated throughout all areas of the office to meet and exceed patients’ expectations. There are several little things that add up to a patient’s perception of an orthodontic office, from the initial referral through the completion of the retention phase.

Speak to Moms About Value and They Will Listen
By: Maria Bailey
Value is a word that Mom understands well, particularly when it comes to managing the family finances, but value doesn’t always mean price in Mom’s mind. It means much more than a price tag, especially in a health care relationship like an orthodontist has with a patient, which also happens to be her child. Value is more closely aligned with quality in this setting.

OrthoSynetics: An Example of Corporate Practice Management
An Interview with David Marks, CEO of OrthoSynetics
The term “corporate dentistry” is thrown around quite a bit these days. It can take various shapes and forms; one of which is the concept of a Management Service Organization. OrthoSynetics is an example of this type of organization. If you are unfamiliar with the firm, it is a dental practice management company that manages all business aspects of orthodontic and dental practices. We recently interviewed OrthoSynetics’ CEO David Marks regarding the company’s future in the orthodontic industry within today’s economic environment.

Transition Traps: 3 Types of Transition That May Not Be What They Seem
By: Char Eash
Whether you are the buyer or the seller of an orthodontic practice, there are certain types of transitions to avoid. The author has learned firsthand about transitions not working out for either party, and has seen the destruction that a sale or potential sale can have on the patient base, the practice and the doctors involved when there is no plan in place. This article discusses three types of transitions buyers and sellers should avoid.

That’s Entertainment
By: Daniel Sroka
For those of us who grew up in the era when the best part of a dentist’s waiting room was a Highlights magazine, the multi-media experience that greets children today is truly amazing. Although Nemo, Buzz Lightyear and Curious George have made both the wait to be called back to the operatory and time in the chair a calmer, quickly-passing experience for young patients, all of that entertainment comes at a price. The lurking issue is whether that price will be paid by the orthodontist voluntarily or whether it will be paid in a response to a lawsuit filed by the lawyers of the entertainment industry.

Click here to read a sample version of the 4th quarter 2012 reSource. Not a subscriber? Be sure to subscribe today by visiting our website.

The Middle Market Orthodontic Practice Observation

Chris Bentson has been speaking to the orthodontic residents a great deal recently regarding market positioning. Within any market there is a luxury brand, a middle market brand, and a value brand – yes, this is even true in orthodontics. In car manufacturing think Rolls Royce, Camry, and Yugo. In the world of mass-market clothing retailers consider Nordstrom, Gap, and Wal-Mart. If in the market to buy a watch, Rolex, Seiko, and Timex define these three market positions.

In orthodontics there are subsets of practices in the country that are “high-end” (or luxury practices). These practices are often characterized by high fees, exquisite facilities, the latest technology, and are heavy with a personal touch. On the other end of the spectrum there is a growing number of “value branded” orthodontic options. Ranging from “doc-in-the-box” corporate stores to “insurance- or Medicaid-” based practices that do not rely heavily on general practitioner referrals and offer no-money down, no frills. Orthodontic practices at both ends of the spectrum, luxury and value, seem to be performing well in today’s economy. Where does that leave the mid-market orthodontic practice? Perhaps, in a pinch.

The middle market orthodontic practice is characterized by mid-level fees (approximately $5,200), a modest-to-high integration of technology, contests and/or drawings for patients are common, patient flow is largely from general practitioner referrals, and a hot cup of coffee may be offered in the reception area. The mid-market practice is fighting hard to attract consumers. The question arises; why is there such a struggle for this market segment of orthodontic practices?

An excerpt from an article featured in the January 3, 2012 Wall Street Journal may help answer this question. The article, “Year of the Oops: Firms Spent 2011 in Reverse,” states:

“Retailers and consumer-goods companies alike grappled with a disappearing middle class in 2011. After years of caution following the stock market’s financial-crisis swoon, the wealthy returned to luxury brands, benefitting retailers such as Saks, Inc., and Nordstrom, Inc.

At the lower end, dollar stores and discount chains profited as prolonged unemployment and economic uncertainty spurred the middle class to trade down.

That created a barbell effect, as companies that traditionally cater to middle-class consumers suffered. Gap Inc.’s profit declined 27% for the first nine months of the year. Department store chain J.C. Penny Co. recorded a $65 million loss.”

For practices feeling the pinch in the middle market, orthodontic owners should understand where their practice is positioned, manage overhead costs to meet consumer expectations for that particular market segment, and develop strategies to extend their position up or down in the market to attract more patients. Business as usual will likely put you in an uncomfortable position. An orthodontic consultant can be a great benefit to help you make the right moves. A thorough demographic analysis of your drawing area is also suggested (see “Is It Cold or Pneumonia: 5 Demographic Facts About Your Practice Area,” Bentson Clark reSource, 4th Quarter 2011). With time and effort, your practice can be successful regardless of its market segment in today’s economic environment.

Dentistry Going Corporate

There was an interesting article featured in the April 9, 2012 issue of the ADA News. The cover story, “ADA Explores Growth of Large Group Practices” caught my eye. The article sites a recent study conducted by the Health Policy Resources Center of the American Dental Association (ADA), which concludes that the rate of solo practitioners is falling. In 2010, 69% of dentists were solo practitioners compared to 76% in 2006.

Certain states and areas of the country are experiencing the expansion at a faster rate than others. For example, the Minnesota Dental Association reports more than 12% of dentists in the state are employed in large group practices.

The American Association of Orthodontists (AAO) surveyed new graduates in 2009 and 2011 and found that 16% of respondents are practicing in a non-traditional setting, defined as either an interdisciplinary practice or a practice where they are employees or independent contractors. Chris Vranas, AAO Executive Director says, “Overall our membership is still at 69% in solo practice, 16% in partnerships, 6% in associateships, 4% interdisciplinary practice and 5% in large corporate practice.

We ask the question – what is driving the trend? The ADA article references educational debt of young doctors and the growth of Dental Service Organizations who need employee doctors to grow.

This trend of dentistry going corporate is something Bentson Clark & Copple has been watching for several years and one that you may have noticed in your drawing area. It will take some time to have a major impact, but understanding this trend will help you as you think strategically about your brand and identity as you communicate with new patients and referrals.

To learn more about the trends of today’s orthodontic residents, check out Bentson Clark & Copple’s 2011 Annual Residents Survey Results.

Blog

Tag: Orthodontic Trends

Be A Lifetime Learner

Big Shift in Patient Demographics: Does it Matter to You?

Bentson Clark & Copple’s Resident Survey

Dentistry Going Corporate

Bentson Copple & Associates