By Practice Integration Advisor Brian Roemke
Running a dental practice is about much more than caring for patients’ oral health. It’s also a business that requires the practice owner to handle many activities including overseeing the front desk duties as well as managing finances and staff. For many dental practice owners, balancing these responsibilities while delivering excellent patient care can feel overwhelming.
As your dental practice grows, so does its operational needs. Hiring additional in-house staff may seem like the natural solution, but it often comes with higher costs, including salaries, benefits, and training. The goal of outsourcing is not necessarily to replace staff members, but to empower them to do their jobs more effectively.
That’s where a partnership with third-party service providers can come into play. Whether it’s outsourcing payroll, hiring a billing company, or engaging marketing professionals, partnering with third-party companies can streamline operations, reduce the burden on your team, improve accuracy and efficiency, and free up time to focus on revenue-generating activities.
Key areas where third-party services shine.
-
Payroll management. Processing payroll can be time-consuming and error prone. Tax laws, employee classifications, and benefits management require meticulous attention to detail. Payroll mistakes can lead to compliance issues, penalties, and unhappy employees. Third-party payroll providers specialize in handling these complexities. For a monthly fee, these services eliminate hours of manual work and reduce the risk of costly errors.
Billing and collections. Dental billing is notoriously complex, involving insurance claims, coding, and follow-ups on unpaid balances. If your practice struggles with cash flow due to delayed or denied claims, a billing company can be a game changer. Third-party billing services use trained professionals to manage claim submissions, track reimbursements, and handle appeals. They work to maximize collections and ensure a steady revenue stream with timely compensation. This allows your front desk staff to focus on engaging with patients, scheduling appointments, and handling calls rather than chasing payments.
Marketing and patient acquisition. In today’s competitive landscape, effective marketing is essential for attracting and retaining patients. However, managing a website, social media, and local advertising campaigns requires time and knowledge. Third-party marketing companies that specialize in dental practice marketing can create custom websites, manage your online reputation, and optimize local SEO to help your practice rank higher in search results.
-
IT and data security. Patient data security is critical in the dental industry, where HIPAA compliance is non-negotiable. Ensuring your practice systems are secure and up to date requires specialized IT knowledge. Third-party technology providers can manage your network security, implement data backup systems, and offer 24/7 technical support.
Human resources support. Managing staff can be one of the most challenging aspects of running a dental practice. From hiring and onboarding to resolving workplace conflicts, HR responsibilities can consume significant time and energy. HR outsourcing companies provide proficiency in employment law, create employee handbooks, and even offer staff training programs. This ensures your team is well-supported and compliant with labor laws without the need to hire a full-time HR manager.
The cost versus value equation.
Some dental practice owners may hesitate to pay for third-party services, viewing them as an additional expense. However, it’s essential to consider the value these resources provide. For example, payroll services can save hours of administrative work each month, allowing dentists to focus on patient care.
In addition, the dental industry has experienced increasing insurance write-offs in recent years, despite committing a large amount of staff time. Billing companies can recover revenue from unpaid claims, improving your practice’s financial health.
By outsourcing these tasks, you can often achieve better results at a lower cost than hiring additional staff. Additionally, third-party providers are authorities in their fields, ensuring a level of accuracy and efficiency that may be difficult to achieve in-house.
How to choose the right third-party providers.
Not all outsourcing companies are created equal, so it’s imperative to research these organizations before partnering with a third-party provider. A company’s reputation, costs, and ongoing support is crucial to your business’ success. Dental practices have a unique set of needs, so look for companies that specialize in dental offices.
Dentistry remains a rewarding profession with the potential for both personal and financial fulfillment. While the challenges of staffing shortages, insurance reimbursement rates, and overhead costs may seem daunting, practice owners have the tools to navigate these trends. By fostering strong team cultures, building patient loyalty, and maintaining financial discipline, owners can not only overcome current challenges but also position their practices for long-term success. By staying informed and strategic, practice owners can chart a path to growth and profitability in a changing landscape.
For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based on third party data and may become outdated or otherwise superseded without notice. Third party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this information. R-24-8023.
About the author
As a Practice Integration Advisor, Brian Roemke provides comprehensive financial advisory services to dental and medical offices, including tax, pension, and retirement planning. He is enthusiastic about his role in a team that strives to deliver an exceptional client experience by helping them understand and achieve their wealth goals. Brian appreciates the importance of a well-rounded team working collaboratively to develop, implement, and monitor a plan that helps clients achieve their distinct goals.