Lesson 1_PRACTICE MANAGEMENT INTRODUCTION PROFESSIONAL & BUSINESS ASPECTS OF DENTISTRY

1) Dentistry is a profession.
“Punctuality is not about being on time, it’s basically about
2) Dentistry is a business.
respecting your own commitments”.
3) The professional and business aspects of dentistry are
compatible and complementary.
“Unhappiness is not knowing what we want and killing
4) Management is important to both the professional
ourselves to get it.”
and business aspects of dentistry.
Know yourself. establish identity.
1. DENTISTRY IS A PROFESSION
• A professional is an individual with a great deal of
expertise in performing some task.

Characteristics of a profession:
1. Members of a profession possess abstract
knowledge.
2. Entry into a profession requires prolonged
specialized training.
3. A profession regulates itself through licensure and
through determining its own standards of education.
4. Members of a profession are relatively free of lay
control.
5. The services provided by a profession are necessary
WHY DID YOU TAKE UP DENTISTRY? for the ongoing functioning of the society.
WHO DO YOU WANT TO BE 5 YEARS FROM NOW? 6. Members of a profession have a service orientation
10 YEARS FROM NOW? rather than a profit orientation.

CAREER OPTIONS 2. DENTISTRY IS A BUSINESS

1. Private Practice • Dental practice must be viewed as a business as well
2. Solo as a profession.
3. Associate • Even those who elect to practice in organizations such
4. Partnership as military or public health service must understand
5. Group Practice and apply some business knowledge.
6. Time – sharing • A business is any individual or group effort to produce
7. Multi-specialty and distribute goods or services for a profit.
8. Heritage
9. Purchase – space, equipment (not popular in the Phil) CRITERIA:
10. Corporation 1. Capital is obtained
2. Goods/services are produced and distributed to
1) Teaching and Research consumers
2) Public Health Service 3. Consumers are willing to buy the goods and services
3) Military Service 4. This production, distribution and sale of goods or
4) Company/ Industrial services result in a profit
5) Dental Product Manager 5. Owner of business is confronted with financial risk
6) Graduate Study for Specialization
“..the net income/profit of a practice is merely the equivalent
FOR A DENTAL PRACTICE of a fair salary for the efforts of the dentist to provide the care
• What kind of dental practice do you want? delivered and that a practice itself does not earn a profit.”
• What type of patients do you want to treat?
• How do you want to work? 3. THEE PROFESSIONAL AND BUSINESS ASPECTS OF
• Where do you want to work? DENTISTRY ARE COMPATIBLE AND COMPLIMENTARY
• What kind of people do you want associated with you • Business persons who view profit as their primary
as a team? objective instead of the provision of goods or services
• How long do you want to practice? that satisfy customer needs will usually NOT prosper
• What kind of vacations will you take? in the long run
• What kind of activities do you want to participate in?
PRIMARY PROFESSIONAL OBJECTIVES
DENTAL PRACTICE 1. To provide high quality dental care to the public
AS A PROFESSION AND AS A BUSINESS 2. To assure that all members of the profession function
in an ethical manner and deliver high quality care by
• “To deal effectively with the current realities of dental means of codes of ethics and peer review
practice, it is imperative to view private practice both 3. To acquire new knowledge and skills that contribute
as a profession and as a business”. directly to the provision of high quality dental care
• “Whether a practice fails or succeeds is usually 4. To aid in making dental care available to the public
determined by the dentist’s ability to manage the and to stimulate the public to seek out and obtain
practice’s patients, staff, financial affairs, facilities, appropriate dental care
and relationships with other professionals”.
 5. To set dental fees at a level consistent with the value
of services rendered and a level that will provide
dentists with an equitable income
6. To provide dental care in a manner that results in
patient, dentist, and staff satisfaction
7. To participate in activities that benefit the
community
DENTAL PRACTICE MANAGEMENT
• Process of obtaining and allocating inputs (human and
economic resources) by PLANNING, ORGANIZING,
STAFFING, DIRECTING, and CONTROLLING for the
purpose of producing outputs (dental services)
desired by patients so that practice objectives are
achieved

PRIMARY BUSINESS OBJECTIVES 4 BASIC STEPS:

1. To provide an economic service
(goods or services) that the public wants and needs
2. To maximize productivity (produce goods or services
as efficiently as possible)
3. To develop and maintain the capacity to survive and
grow as a business, including the readiness to
participate in experimentation and to utilize new
processes to improve the products or services
provided
4. To provide opportunities for individuals and groups
(customers, employees, creditors, and suppliers) to
attain their personal objectives
5. To assist society in achieving broad goals intended to
contribute to the public’s quality of life and standard
of living
1. Establishing a philosophy of practice.
2. Establishing practice objectives and fixing their
priority.
3. Gathering information and forecasting future events
that could affect the accomplishment of objectives.
4. Establishing and implementing budgets,
policies, procedures, methods, rules, and standards
that direct the practice’s activities toward the desired
objectives.

4. MANAGEMENT IS IMPORTANT TO BOTH THE

PROFESSIONAL AND BUSINESS ASPECTS OF DENTISTRY
• Most dentists and dental practice management
experts agree that poor management is the primary
reason why dental practice objectives are not
achieved and why dentists are sometimes forced to
dissolve their private practices.

MAJOR REASONS OF BUSINESS FAILURES

• Failing to define • Underpricing or

goals overpricing
• Starting without valid • Wasting time
information about
the business and its
market
• Failing to plan ahead • Expanding too
rapidly
• Selecting the wrong • Having too little
employees capital
• Mishandling • Spending recklessly
personnel and buying too much
on credit
• Failing to keep
adequate and
accurate records