Time to examine your practice operations
The recent enhancements to Determination I of the Statement of Dental Remuneration (SDR) have been welcomed by some among the sector.
With a six per cent inflationary rise, allied with a number of significant increases to treatment fees, we fully anticipate that the NHS or mixed practice revenues should increase from 1 November onwards. Whether the increased fees will be sufficient to stem the flow of practitioners leaving the NHS behind remains to be seen.
One of the most impactful changes within the new SDR is the suggestion that annual exams should be the assumed entry point for patient care rather than bi-annual. In some cases, it is suggested that 18 or 24 monthly would be acceptable, and the onus is on the practitioner to assess clinical need.
We would love to brainstorm how your practice harnesses this opportunity for growth
We have undertaken extensive modelling on this change and found that the average three chair practice, based on an assumed mixed frequency of recall, would potentially lose circa £63,000 per annum in examination fees under these measures.
However, that is only a small part of the jigsaw and as a result of less chair time being required for examination the practice would be in a strong position to fill those released hours with new patients or additional restorative services.
With a strategically planned approach, we estimate that the reduced exam fees would be more than compensated by a potential of circa £290,000 of additional fee revenue on restorative services. The net impact of this being an enhanced revenue generated of £227,000 net. This is in addition to the enhanced revenue created from other NHS services.
Whilst this potential enhancement is available to target, some careful planning is required and it will not be automatic. We would love to brainstorm how your practice harnesses this opportunity for growth. Please do get in touch if we can help.
Victoria Forbes
Director, Dental Accountants Scotland
E: victoria@dentalaccountantsscotland.co.uk
W: https://dentalaccountantsscotland.co.uk/
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