In today’s competitive dental landscape, practice owners are always seeking ways to improve financial performance. Whether aiming to boost cash flow for daily operations or to prepare for a sale at maximum valuation, focusing on areas of low-hanging fruit can yield significant benefits. Thanks to advancements in AI, identifying and addressing these opportunities has never been easier.
Many clients have already seen early success with AI-driven technologies. However, as with any industry, there are good and bad actors. To ensure success, conduct due diligence—vet vendors, read reviews, and seek references before committing to any solution.
Steps to get started
1. Assess current expenses.
Gather data on significant expense categories to identify potential savings.
2. Choose the right AI tools.
Research platforms specializing in health-care expense management, and take advantage of free trials to evaluate effectiveness.
3. Implement changes gradually.
Prioritize areas with the highest ROI and avoid disrupting operations.
4. Track and reassess.
Use AI tools to monitor results and identify new opportunities for optimization.
How technology can increase EBITDA
Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a key metric for measuring profitability and operational efficiency. Improving EBITDA enhances financial health and boosts practice value. Whether planning to sell or sustain growth, maximizing EBITDA is essential.
Where to find low-hanging fruit in your practice
AI-driven tools like Spendly and Liine can analyze your business and recommend optimizations. Here are key areas to target:
1. Merchant fees
Solution: Audit credit card processing fees and benchmark against industry standards.
Tools: Spendly, Stax
2. Payroll expenses
Solution: Optimize staff scheduling to reduce overtime and improve productivity.
Tools: Deputy, Gusto, BambooHR
3. Insurance and employee benefits
Solution: Compare insurance plans and negotiate better rates.
Tools: Zywave, SimplyInsured
4. Telecom and internet
Solution: Review contracts to eliminate unnecessary services.
Tools: TelcoCompare, SIB Fixed Cost Reduction
5. Dental suppliers and purchasing
Solution: Compare vendor prices and leverage bulk discounts.
Tools: Method Procurement Technologies
6. New-patient phone calls and web forms
Solution: Monitor calls and web forms to improve booking rates.
Tools: Liine, Patient Prism
Leveraging technology for long-term gains
AI tools provide ongoing savings by monitoring expenses, alerting you to contract renewals, and recommending alternative vendors or renegotiations. These optimizations not only improve cash flow, but also signal to potential buyers that your practice operates efficiently, enhancing its valuation.
A win-win for your practice
Harnessing AI to address low-hanging fruit offers dual benefits. Day-to-day, it boosts cash flow and operational stability. For those considering a sale, it maximizes EBITDA and positions the practice as an attractive acquisition target.
By embracing AI-driven tools, your practice can achieve peak financial performance while continuing to deliver exceptional care. Start exploring these opportunities today to unlock your practice’s full potential.
Editor's note: This article appeared in the February 2025 print edition of Dental Economics magazine. Dentists in North America are eligible for a complimentary print subscription. Sign up here.
