Pearls of Wisdom - Interview series with Industry Experts (Issue 1)

The Irony of Essential Services - Improving Inefficiencies in Healthcare

Interview with Kevin Lee, Ex-group COO of various healthcare groups

Welcome to Issue 1 of our Pearls of Wisdom series, where we dive into the minds of leaders in the dental industry. Join us as we take a peek behind the scenes of running a dental clinic from the eyes of real world practitioners. 

In today’s article, we uncover the hidden challenges and inefficiencies within the dental industry. Despite its vital role as an essential service, it often struggles with operational shortcomings that affect both providers and patients. To explore these issues, we had an enlightening conversation with Kevin Lee, a renowned expert in the dental industry. As an accountant by training, Kevin spent years in the finance industry before pivoting to healthcare. With a wealth of experience accumulated running and advising multiple dental chains, he was eager to share his recipe for success. 

We asked him four broad-based questions, and here are his responses.

What do you think is needed to successfully grow a clinic chain? 

Kevin: It is essential for practices to navigate the highly fragmented and competitive landscape of the dental and medical industry. Clinics need to focus on differentiating themselves and improving their operational performance to grow. Dentists may spend years studying dentistry and honing their craft, but their clinical education has less focus on running and growing a business. From a business management perspective, we know that the ability to develop and scale a business, depends on the owners’ and managers’ ability to manage the financial and operational aspects of their practices. Businesses often look at revenue, profits and financial numbers, but it is important to understand what drives these numbers. Clinics should focus on specific data that measure the performance metrics of clinics individually, or at a group level. Knowing what metrics to measure, as well as understanding and interpreting these metrics are equally important. Being able to identify the actions and behaviours that can be taken to impact these metrics is the key to real change. 

Time is also a key consideration. If the owner is a dentist, balancing clinical duties with running group operations can be challenging. Running a business is a full-time job, and owners may need to allocate more time to manage their practice effectively. However, to fully focus on the business means that clinicians may have to sacrifice clinical time. Hence, it is important to find the right tools and form the right team to help understanding and controlling costs, such as rent and staffing, in the business.

You heavily emphasise the importance of efficiency. Could you elaborate on the consequences of inefficiency on a business?  

Kevin: Inefficiency drives up costs, and this cost in healthcare is often passed on to patients. High prices make a business less competitive, and inefficiencies like long waiting times and unnecessary visits also reduce competitiveness. Unfortunately, because healthcare is an essential service, naturally, there might be less motivation to improve efficiency. However, this is not true anymore as patients are becoming more discerning and demanding.

Long-term inefficiencies have negative effects. Long waiting times mean dentist utilisation rates are not optimised, leading to fewer patients per day. Overall revenue decreases, and the cost per doctor goes up, straining the bottom line. Dissatisfied patients may complain more, creating an unpleasant working environment for staff. Staff attrition increases, and more resources are needed for hiring and training new staff. These effects eventually reach the patient, where increased operating costs often translate to higher treatment costs, leading to patient loss.

Business can improve efficiency by identifying pain points and monitoring appropriate data points. By leveraging data analytics and AI, clinics can optimise their scheduling, improve patient flow, and ultimately enhance both patient satisfaction and revenue. Medtrik can help mitigate these inefficiencies by providing actionable insights into clinic operations.

Could you share more about how you successfully ran your clinics during your time as COO?

Kevin: Clear communication and engagement across the team are vital. I ensure my team feels engaged by being present at the clinics, getting to know staff, and explaining the rationale and benefits of management decisions. This helps motivate the staff and aligns them with the plan, encouraging them to go above and beyond in their duties.

What role does metrics and data play in your business and how do you use it?

Kevin: Tracking metrics is fundamental for any business, including dental practices. The number of patients served provides a baseline metric, while utilisation and revenue per hour per chair are crucial for financial health. These metrics allow clinics to set KPIs for their staff, giving them achievable goals to work towards. For example, clinic staff are aware of and constantly monitoring the number of patients served per week/month and this motivates them to acquire new patients through calls and SMS reminders. Essentially, identifying key, actionable metrics is essential for improving clinic operations.

Medtrik excels in this area by offering comprehensive data analytics and reporting tools that help clinics track and interpret these crucial metrics. With Medtrik, clinics can set specific KPIs, monitor performance in real-time, and make informed decisions to drive improvements. 

Conclusion

Overall, the need for better business management skills among dentists, efficient operational practices, and the effective use of data and AI is evident. Addressing these pain points can lead to more scalable and financially viable dental practices. By focusing on these areas, dental clinics can transform from merely essential services to more efficient and effective ones, truly living up to their critical role in healthcare. Our Medtrik system can help you do all that and more.

How can Medtrik bring value to dental practices?

Keeping these points in mind, Medtrik stands out by delivering significant value through its ability to provide users with clear, actionable insights and metrics. In today's data-driven world, simply presenting raw data is not enough; the true value lies in the translation and triangulation of multiple sources of data into meaningful insights that can drive informed decision-making. Medtrik excels in this regard, ensuring users can easily understand and act upon the information they receive.

AI plays a critical role in this process. It can sift through vast amounts of data, identifying patterns and trends that might not be immediately obvious. By summarising and analysing data, AI makes it more accessible and actionable, empowering users to make smarter, data-driven decisions. However, the effectiveness of AI is heavily dependent on the quality and comprehensiveness of the data it processes. Without thorough data, AI cannot perform to its full potential. Medtrik thus emphasises data integrity and completeness, maximising AI's effectiveness in generating valuable insights.

Stay tuned for Issue 2 of our "Pearls of Wisdom" series, where we continue to explore industry challenges and identify areas for improvement.