Cliff's Notes

Controlling Overhead Part II, Fortune Industry Ranked #1 Most Admired, Air/Water & Dentistry

Cliff’s Notes for April 19, 2009

…..E-Blast…..

Cliff Marsh, Henry Schein ……Cell: 201-321-7494……Fax: 201-262-2210…..cliff.marsh@henryschein.com

“Everything that can be invented – has already been invented”

Charles Duell

Commissioner, U.S. Patten Office, 1890

In This Week’s Blast

* Controlling Overhead – Part II

* Fortune Awards Henry Schein “Industry Ranked #1, Most Admired”

* Air, Water & Dentistry

* Replacement Turbine Summer Promotion

Controlling Overhead – Part II………………………………………………………………

Let’s pick up where we left off last week and start examining the different costs associated with running your business. The best place to start is with the biggest expense and source of stress, your staff. Again, according to national averages, one employee is required to generate $125k of gross revenue. If 30.3% of the gross is staff compensation, then the non-dentist employee’s cost would drop if production went to $150k. However, if production increases, the staff wants to be compensated for working harder and generating more revenue. This is where compensation can be controlled. You need to freeze wages and institute a bonus upon production plan. This type of program will allow the staff to benefit from the practice’s successes and work through slow times with a little extra effort.

There are many types of bonus programs that are successful. The staff needs to have it explained in detail so everyone understands the possibilities. This is when “team harmony” comes in. No, you don’t have to hold hands and sing; you just need to be on the same page.

It is tax time and some of you out there had to pay Uncle Sam because you didn’t plan correctly. Did you know that instead of sending the money to Washington, you could have invested it in your practice? Heck, you got to write the check anyway, the only difference is who the check is made out to. Hey, what about a 401K plan to help you retain those “really good” staff members? The company contribution could be tied to annual production and the tax planning possibilities would put a smile on any financial advisors face. Henry Schein, being part of the Fortune 500, has afforded us the opportunity to work with Fidelity Investments. There is no monetary compensation to Schein for this arrangement. We use Fidelity for our plans and because of the relationship, Schein clients are offered free plan set up.

Employee manuals are essential. You can not start to control your overhead unless you have a “written” set of policies, procedures and protocols. It does not take that much time to develop a manual; however, it does need to be done. Sample manual are available from the NJDA or you can contact me.

Staff compensation is the largest part of your overhead. When handled correctly, you will have a very happy staff and that leads to increased production. As I stated in last weeks E-Blast, you can not reduce your overhead, you can only control it, and so what we need to do is talk about putting patients in the chair and increasing production. Please feel free to contact me at any time.

Fortune Ranks Henry Schein #1 Most Admired Companies………………………………..

Fortune Names Henry Schein ‘Most Admired’ in its Industry

Fortune’s 2009 list of the World’s Most Admired Companies, published in March 2009, once again ranked Henry Schein “Most Admired” in the “Wholesalers: Health Care” industry. Henry Schein ranked number one in our industry for social responsibility for the fifth year in a row.

The Fortune rankings were based on a survey that included 689 companies in 28 countries and 64 industries. Henry Schein’s ranking as an “Industry Champion” was based on number one rankings in six of the nine key attributes of reputation: use of corporate assets, quality of management, long-term investment, quality of products/services, global competitiveness and social responsibility.

Air, Water & Dentistry………………………………………………………………………

You can not do dentistry unless you use air & water. Over the last several years there have been a lot of issues with water and the biofilm contamination that forms in the dental unit lines. Just in case you do not understand the biofilm issue, I’ll try to explain it as simply as I can. Biofilm is bacteria that naturally develop in nature. The EPA sets city water (tap water) standards at 200 parts/million. Bacteria that does come through the tap is basically harmless. Our immune systems are designed to protect us. However, when water is stagnant or moving very slow, it allows time for the bacteria to multiply and form that green slimy stuff called biofilm.

Dental water lines are very small. When water enters at the junction box it take a long time before it gets to the handpiece or 3 way syringe. During that time the bacteria grows very rapidly. Within 24 hours the bacteria level in your delivery unit is far above the 200 parts per million. This increase is usually not an issue with healthy patients and staff, but immune compromised patient should be screened and checked on a couple of days after treatment. What most people don’t understand is that biofilm aerosol vapor is emitted whenever water is being used in the operatory. This vapor can be a health hazard to your staff unless the unit is clean and the operatory is well ventilated. We’ll talk about hazardous vapor when we discuss air lines.

Clean water bottles look nice, but they do not solve the biofilm issue. They just allow you the ability to clean and disinfect the inside of your unit and provide medicaments during your routine procedures. Keeping your delivery unit clean will also increase the functionality of your handpieces. Water is the basis for all life. Spring water from the store has bacteria and when exposed to the environment, they will multiply. Do not use distilled water in the water bottle, it will, in time, damage your equipment due to the high Ph level.

Now, how should you address biofilm contamination? It’s easy, call me! Every office is different and there are many products on the market that will arrest the problem. Biofilm is part of our natural environment and has been around for millions of years. Biofilm control has been on a forefront in dentistry for about 15 years.

Air lines, in most cases, are not much different than water lines, however, they can’t really be cleaned and now I will let you in on the dirtiest little secret in dentistry. Did you ever wonder what the inside of your air compressor looks like? It’s probably similar to the Great Bear Swamp. Think about it, warm, dark and moist.

A compressor creates pressure by squeezing the air in the tank. When you squeeze air, condensation accumulates at the bottom of the tank. A bacterium that survives in the humidity in the air now has the opportunity to grow. Picture an air conditioner and the water that drains from the “compressor” in the unit. Your dental compressor is the same thing.

Now, let’s add another factor. Where is your vacuum pump located? Usually it is next to the compressor. Where does your vacuum pump vent? Most dental offices have no idea. It should vent outside the building. If it does not, all the bacteria and contaminants that are evacuated from the oral cavity are vented in the vacuum/compressor room and sucked up by the compressor. The bacterium is then distributed back to the operatories in an aerosol form through the handpieces, syringes, prophy-jets, etc. Did I here anyone say O.S.H.A? The remedy is easy, call a plumber to properly vent the vacuum pump. If you need to know if your pump is vented correctly, call me!

As far as the compressor tank goes, you need to make sure that the automatic drain is clean and functional so water that condensates at the bottom of the tank is expelled. Also, the desiccant air filter should be checked at least once per year and we all know how often that happens. As a matter of fact, the first question you are thinking about at this moment is what is a desiccant filter? The filter traps any moisture or debris that is coming out of the compressor. A dental compressor, unlike other industry compressors, is designed to deliver clean, dry & oil free air to your treatment rooms. If you change the oil in your car every 3,000 miles, check your compressor filter once a year. An equipment service call is all that is needed to change the desiccant filer element.

Properly maintained equipment helps an organized staff increase overall production by minimizing down time and creating a healthy work environment.

Replacement Handpiece Turbine Summer Promotion…………………………………………

ProScore High Speed Turbines are manufactured to the highest standards. There are ProScore turbines to fit almost any high speed handpiece. All Turbines carry a 6 month warranty (unless noted) and are being offered at a 15% discount. Sample pricing is below (prices shown are after discount). Turbines are new and NOT rebuilt.

ProScore Turbine to fit: Canister Style (Economy – 3 month warranty)……………………………………………………. $34.99

Star 430 Series Maintenance Free PB……………………………………………………………… $145.99

Lube Style/PB……………………………………………………………… $135.99

MW QA-L or Tradition-L…………………………………………………………………………. $135.99

Kavo PB 630/640/642……………………………………………………………………………… $135.99

635/647/649……………………………………………………………………………… $145.99

Lars, Kinetics, W&H (distributed by Adec), NSK and more. Most styles @……………………………. $135.99

Call for prices on any high speed handpiece turbine.

Sunday, April 19, 2009…………………………………………………………………………

Today is Sunday, April 19th. It promises to be a beautiful day. What ever your plans are, have fun and please be safe. As always, I am available at any time for your questions and concerns.

p.s. I hope you can make the Party @ Pier59 Studios on May 11th. Check you e-mail and fax line for details or give me a call.

October 21, 2009 - Posted by Cliff's Notes Blog | 1