The Economics and Business of a Dental Office
Good employees add value to your practice. Great employees can even make it shine. So, of course, you want to make sure those employees stick around. But that can be tough in a good job market. It can also be tough right now, since some employees may be concerned about contracting COVID-19 if they return […]
Continue ReadingLast week we looked at free markets. But sometimes free markets don’t work well for everyone involved in them. That’s where regulated markets come in. In a regulated market, an entity—typically a government—will put certain restrictions, controls or privileges on a market. A classic example of a regulated market is where a government prohibits a […]
Continue ReadingBefore we jump into how diversifying revenue streams can help your practice, let’s look at what may be a more common example. We’ve all heard stories of the person who bought Amazon stock in 1998 or Apple in the early 2000s. They’re rich. But what about the person who bought Chesapeake Energy 10 years ago? […]
Continue ReadingYou hear a lot about free trade and free markets in the news. Today, we’re going to look at what free markets are and a few pros and cons. We’ll also take a look at how free-market thinking can help your dental office. A free market means that two (or more) people, businesses or countries […]
Continue ReadingWhat do Led Zeppelin and Cardi B have to do with the economics of a dental office? A lot, it turns out. Here’s how. Stay with me for a minute before I get to the dental part. The music industry was tanking a decade ago. Nobody was buying CDs anymore, and music execs struggled to […]
Continue ReadingWe’re going to dive into a bit of behavioral economics here and take a look at a phenomenon call anchoring bias. Anchoring bias happens when someone puts too much weight on the first piece of information they see. For example, if a patient sees an ad where a dentist is offering a new patient special […]
Continue ReadingThis seems like a pretty easy one. Most people have insurance, and everyone knows, generally, how it works. Right? Well, yes and no. In an economic sense, insurance lets us put more of our capital into running our business. Rather than having to set aside a large stash of money for a malpractice suit or […]
Continue ReadingYour office has revenue and hopefully your office has profit. Let’s look at the difference. Revenue is all the money you take in – from patients, insurance companies, sales of products, etc. If you add up all the deposits to your bank account each month, that is your monthly revenue. Profit is what’s left after […]
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