maintenance and other operating expenses
TRANSCRIPT
MAINTENANCE AND OTHER OPERATING EXPENCES
Prepare a maintenance and service schedule for the whole practice
Identify w/c task should be done by the dentist and w/c by other members of the practice staff
Set goals for these maintenance intervals eg. Weekly, monthly,6-monthly, annually, etc.
Find out what materials/supplies are needed for the maintenance
Ensure that the practice has an effective tool-kit w/ an appropriate range of tools to fit every item of equipment in the practice
To minimize in convenience to patients and lost practice income you would prefer maintenance to be done in the evening or at weekends
In your budget forecast, you should have made realistic provisions for routine repairs, renewals and maintenance
Monitor your actual cost and compare them w/ your budget
In regular routine maintenance, one can schedule time for well advance at appropriate intervals w/c there is always the unforeseen repair
Staff should report any repair/maintenance task that they noticed by having a fix-it book
To identify suitable time-blocks for specific task
To maximize effectiveness use of time
CONTINGENCY PLANNING
Contingency handbook provides details of each item of equipment, and summarizes what to do if it goes wrong
Simple faults and how to rectify themSpares and accessories held (bulbs, etc)
where to find them in the practice and how to fit/use them.
What are the possible options to do if a more serious fault occurs
Who to contact to effect a repair or obtain loan equipment.
OVERHEADIs an operating expenses associated with running the dental practiceIt includes:
Rent or mortage paymentProperty taxesPayrollIndependent contractor expensesOutside consultantsSuppliesDental lab bills and utility bills, etc.
FIXED EXPENSES
Includes those office expenses w/c remain fairly constant from month to month.
These are generally larger bills eg. rent and mortage, payroll,utilities and lease payments on equipments
VARIABLE EXPENSES
Includes those office expenses w/c vary from month to month or are received only on occasion
These may include dental supplies and lab fees, new equipment purchases, and new services
CONTROLLING PRACTICE OVERHEAD THROUGH BUDGET
GOALS
Budget goals help contain costs incurred by the practiceOffice manager should keep practice overhead revenues w/in an establish percentage of production
Categories of Practice Expenses
The following categories may be used as a guide in determining anticipated office expenses at annual budget review time
It is based upon gross collections of a solo practitioner office
Personal expenses
It is the highest overhead associated w/ personnel payroll,
including salaries and taxes
Occupancy expenses
Cost of physical occupancy of the practice
Includes: lease note plus interest, depreciation, insurance, janitorial and maintenance services.
Administrative expenses
Cost of administering the practice.
Includes: accounting and legal services, collection costs, bank charges, etc.
Equipment and furnishing
Cost of equipment and furnishings
Interest on equipment and or cash purchases of equipment
Clinic and dental supplies
Cost of dental supplies associated with patient care
The incurment of additional infection control and barrier protection cost associated w/ compliance w/ government regulations
Lab feesThe cost varies greatly, depending upon
the type of practice and volume of prosthetic cases.
Marketing cost
Cost for marketing expenses varies from practice to practice
Eg.donations, telephone, space advertisement, etc.
MANAGING SUPPLY INVENTORY
Maintaining a sufficient amount of dental supply items and purchasing them at the lowest price
Most of dental practices spend upward of 10% of their total overhead on dental supplies
TYPES OF SUPPLIES
4 categories:Consumable
Disposable
Expendable
equipment
CONSUMABLE SUPPLIES
Those that are completely used up or consumed with use
These include anticariogenic agents, cements, impression mtrls., and gypsum products.
DISPOSABLE SUPPLIES
Single-use items that are discarded immediately after the procedure for w/c they are used.
Eg. cups, gloves, dental dam, cotton rolls, anesthetic needles, and carpules
EXPENDABLE SUPPLIES
Items that are relatively low in cost and are replaced frequently.
Eg. Paper clips, burs, matrix band, plastic impression tray
EQUIPMENT
Major purchases that are used for five or more years and may be depreciated by the office over a number of years
Eg. Computers, chair, dental units, sterilizers, lasers,handpieces, etc.
MANAGING SUPPLY
Shelf life
Rotating stock
Storage consideration
Rate of use
Storage of controlled subs.
Shelf life
Amount of time a product is guranteed fresh
Product should be use before it reaches the expiration date
Rotating stock
Must ensure that when new supply items are received in the office the oldest items are used first
New items are placed farthest back in the storage.
Storage concideration
Consideration must be given to special storage requirements on product labels such as light and heat sensitive
Rate of use
Determine a rate of use on commonly used items to establish a routine reorder point
When the item reaches the minimum quantity additional units should be ordered to avoid running out.
Storage of controlled subs
To prevent abuse of controled subtances, unauthorized, the office that dispenses this prescription should use a double lock storage system.