Is there a right time?

Managing Director of Medifinance, Ray Cox, believes that a review of the way a practice is equipped may pay unexpected dividends.

I think that we can benefit if we are able to laugh at ourselves.
A very good friend of mine, who runs a pretty successful practice, was recently told by a long-established patient(client) that whilst she considered him to be an excellent dentist she felt that the overall feel of the practice was, to use her words, 'a bit tired'.
Now JS (as we'll call him) is certainly careful with money, but he's not mean. Equipment is replaced as and when necessary and/or when the lease runs out but that's about it when it comes to any sort of replacement/updating programme. By his own admission he hasn't really thought a great deal about the other factors that might impact on a patient's perception of his practice, so the 'tired' comment came us something a surprise. And not a particularly pleasant one.
However, and to give JS his due, he took it on the chin, and over a very pleasant and good-humoured lunch, we agreed that a patient's perception is reality and that he needed to understand this and up the game. Whilst we both acknowledged that every practice is different and there can never be a 'one size fits all' equipment strategy, we felt that there are other factors to take into account that may be easily overlooked. In short, planning for replacing/updating equipment should go beyond simply replacement when it reaches its sell by date. A far more holistic approach is needed.
Let me tell you (albeit briefly and without the accompanying glass or two) what we talked about and what considerations practices might well benefit from taking into account as they invest in their growth and profitability. Here are a few questions I think you should ask yourself……

On the basis that you get what you pay for what best describes our treatment equipment strategy?

Do we as a rule replace like with like? Do we look to upgrade where feasible? Do we 'wait till it breaks' and risk increased servicing bills? Are we confident that we are up to date on what products are available within the categories in which we are seeking to replace?

What is our policy for looking at providing additional/new treatments that could potentially increase revenue?

Do we actually have a policy and if so how frequently is it reviewed and discussed? What are the criteria for implementation? Even if the demand were there would we postpone opening a new surgery and simply accept that prices will rise whilst we delay our decision?

When a new client walks into our practice what might be their first impression?

Are we maintaining an investment in our practice as a whole?
If you were being graded, give yourself marks out of ten (and be honest with yourself or better still ask a few clients to do it for you) on:
Are we maintaining an investment in our practice as a whole?
If you were being graded, give yourself marks out of ten (and be honest with yourself or better still ask a few clients to do it for you) on:
  • Friendliness
  • Signing
  • Parking
  • Waiting area facilities and comfort
  • Overall décor, tidiness and cleanliness throughout the practice
  • Waiting time

As a practice are we investing in a working environment that not only helps us retain staff but also aids recruitment?

Again it's worth taking a critical look not only at treatment equipment, but also at rest facilities, toilets, lighting, staff parking and so on. Is there a positive energy about the place? Is staff morale high?

Do we try and stay ahead of our competitors?

And if we do, how? Have we recently checked out the competition and are there things they do better?

To Sum up

The point I want to make is that every type of equipment you purchase for your practice, be it waiting room furniture or CD scanners, is an investment and the better the investment the more revenue it will generate.
So when is the right time to invest in new equipment? In truth there is never a right time. Do you wait until something breaks before replacing it or recognise the signs of wear and tear and ever-increasing service bills and get ahead of the curve? Do you postpone expanding into another surgery to deal with patient demand merely to exacerbate the situation or be ahead of the game and bring the new surgery into use to deal with the demand as it happens? The new piece of imaging technology you know other practices in the area have…..do you wait until the price comes down or invest now and reap the rewards of better and faster diagnosis? There are many reasons for delaying new investment and probably the most common is the financial one. But whilst you wait for interest rates to improve the price of equipment just keeps on rising like a rainbow with no end. One answer is to speak to us and find out the actual cost of financing your investment. You may be pleasantly surprised.
If you feel we may be able to help you with putting together a business plan and sourcing funding and/or you have any other financial requirements do please contact me at This email address is being protected from spambots. You need JavaScript enabled to view it. mobile 07785 757782 www.medifinance.co.uk 
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