The 6 Responsibilities Every Dental Practice Owner Should Know

Last updated on August 28th, 2024 at 02:41 pm

We’ve got tons of content in our blog about how to effectively perform various positions in a dental practice—whether it’s the office manager, scheduling, the treatment coordinator, or finance. But what about the job of the practice owner? Is there more to being a business owner than just – you know – owning a business?

Well, of course, there is! Just like any other position in a practice, the ownership role comes with specific duties, responsibilities, and most importantly, expected results or outcomes.

And look, there’s a TON I could cover on this – not least of which is how an Owner should be trained on how to properly manage a business – which is why so many dentists opt for the MGE Power Program. But this being a blog post, I wanted to distill it down to six key actions that every owner/doctor should be aware of and doing on a regular basis.  And with that, let’s jump right in:

1. Create a Fully Functioning Office Manager

The first and most important responsibility of a practice owner – regardless of practice size – is to hire or appoint someone to run the business—an office manager. Now, you might think “I have a small office, so maybe later.” Nope, in a smaller practice the office manager might in addition to their manager “hat” also handle other practice functions (i.e. scheduling, insurance verification, the Treatment Coordinator functions, etc.).

As the practice grows, they would divest themselves of these jobs by hiring competent personnel and training them for these positions. That said, hiring/appointing a manager is not enough – your job as the owner is to create a functioning and productive manager. That would include training (Such as on the MGE Office Manager Training Program).

In sum, If I were to outline the primary product of the doctor/owner, it’s to get a fully functioning, productive, competent office manager who can run the practice. And again, if you’re wondering why this is so important – consider this – as the owner/doctor, you’re most valuable to the practice chairside or interacting with patients. And when you’re doing this for most of your day – who’s running the business? Certainly not you – you can’t. Yet your business needs to be run!

2. Develop and Provide Clear Policy

The office manager’s job includes implementation and enforcement of the policies of the practice—but creating those policies? That’s your job as the owner. Policy formulation is a critical task that falls squarely on your shoulders. Now, that’s not to say that your manager (or other team members) cannot suggest policy – they can – but it must always be approved by the owner.

The key? Start small and build. When I tell clients they need to write policy, there’s often a degree of apathy or at best a little resistance. “When am I going to have time to do this?” I’m not a good writer, etc.  The truth is your policies don’t need to be masterpieces. They just need to be clear and understandable. Start now and write one or two policies a week. That’s 50-100 policies a year. Before you know it, you’ll have a comprehensive set of guidelines that your office can run on. And the best place to start: with the areas of your practice that are giving you the most trouble!

3. Planning for the Future and Communicating the Vision for Your Practice

As the Owner you’re in the driver’s seat. You created this business and have the most impact on its vision and future plans. You need to 1) have a vision and future plans and 2) communicate this to your executives and team!

Defining Your Vision: The vision for your practice isn’t just a mission statement; it’s about clearly defining what your practice does, what it creates, and how it differentiates itself from other practices. This might include the type of dentistry you want to practice, the level of patient care you aim to provide, and the outcomes you’re striving for with each patient.

Why Vision Matters: You can’t assume that everyone automatically knows that the goal of your practice is to create healthy patients—not just healthier patients. This is especially true if you hire someone who’s worked in a different type of practice before. If your vision isn’t clearly communicated, your staff might default to doing things the way they did in their previous offices, which might not align with your goals.

And with this vision in mind, you can lay out the long-term plan for your business.  This might include growth type goals, additional locations, types of services you plan to offer patients, etc.

Aligning Your Team: When you clearly lay out your vision, it ensures that everyone in the practice is on the same page and pushing towards the same goal. This alignment is crucial for the success and harmony of your practice. If everyone is pulling in different directions, you’re going to have problems. But if everyone understands and works towards the same vision, your practice will run smoothly, and you’ll see better results.

4. Manage and Support Your Office Manager

Stay Involved: Your Office Manager manages the practice. The Owner manages the Office Manager. This doesn’t mean watching over their shoulder or micromanaging every little thing they do. It means meeting with them regularly, making sure they’re on track, and providing the support and training they need to succeed.

Weekly Meetings: At a minimum, you should be sitting down with your office manager once a week. Take this time to go over the practice’s statistics, review the finances, discuss any personnel issues, and make sure that everything is running smoothly. And here’s a tip—don’t do it in the office. There are always going to be distractions. Get out of the office for half an hour to an hour and have your executive meeting where you can really focus. (SEE VIDEO ON EXECUTIVE MEETING)

Daily Check-Ins: You don’t necessarily need to meet every day, but a quick five-minute check-in before the morning meeting can help keep weekly and monthly planning on track. This way, you and your office manager can coordinate on the day’s priorities and make sure any issues are addressed before they become bigger problems.

5. Control Your Finances

Financial Oversight: As the practice owner, you must control the finances. Sure, your office manager or bookkeeper can handle paying the bills and managing payroll, but when it comes to the overall financial health of the practice, that’s on you.

Understanding Profitability: You need to be on top of how much money is coming in, how much is going out, and whether you’re getting a good return on your investments—whether that’s marketing, staff, or equipment. Approving major expenditures, like equipment purchases or bonuses, should also be your responsibility to ensure everything aligns with your financial goals.

Keeping an Eye on the Big Picture: You should regularly review your practice’s financial statements and make informed decisions about where to allocate resources. This level of control ensures that your practice remains profitable and financially healthy.

6. Monitor and Analyze Key Statistics

The Importance of Metrics: You need to be on top of the statistics in your practice. And I don’t just mean knowing where you stand at the end of the month. You should have a general idea of your key metrics—like production, collections, and new patient numbers—on a daily basis.

Daily Awareness: It’s not about being obsessive but knowing where you stand daily helps you stay proactive rather than reactive. If something’s off, you can address it quickly rather than letting it spiral out of control.

Regular Reviews: Use your weekly meetings to dive into these stats in more detail. Look for patterns and trends—like dips in production or fluctuations in new patient numbers—and adjust your strategies accordingly. The sooner you catch an issue, the easier it is to fix.

Conclusion

Owning a dental practice is more than just seeing patients—it’s about running a successful business. By focusing on these six key responsibilities—working to create a productive and functioning office manager, developing clear policies, communicating your vision, supporting your office manager, controlling your finances, and monitoring key statistics—you’ll set your practice up for success.

And remember, these are the fundamentals. Nail these, and you’ll be well on your way to building a thriving practice that not only meets your goals but also delivers outstanding care to your patients.

If you need any help with these areas or want some advice on optimizing your practice, don’t hesitate to reach out to us at MGE Management Experts. We’re here to help you every step of the way.