<img height="1" width="1" src="https://www.facebook.com/tr?id=1459793420724892&amp;ev=PageView &amp;noscript=1">

Financial Challenges for DSOs

When you are building your DSO, which financials should you focus on? Margaret McGuckin has tried and true advice. McGuckin was the founding COO of the direct-to-consumer model pioneered by ClearChoice Dental Implant Centers, steering the organization from 1 to 31 locations in 14 states in a four-year period. Now she is the co-founder of i3 Ignite, a consulting company for emerging and established DSOs and other types of healthcare companies.

“Because value creation for a DSO is based on revenue, especially in the early days, we recommend you start with something very simple. And that very simple piece is patients. How much revenue do you need per patient to get to the level you want? And then how many patients do you need at that rate?” says McGuckin.

Once you have your target revenue per location and target number of patients, you need to examine how many are showing up for appointments and accepting treatment. To get to your target revenue, you may have to go back and figure out how to reduce the no show rate, how to increase the number of patients coming in the door, and how to increase case acceptance. In this video, McGuckin shares the formula she used to grow ClearChoice Dental Implant Centers to more than $131 million annually in just four years.

According to McGuckin, this is a simpler way of setting financial goals than starting with production. “Only when you have revenue conquered, really dig into the expense side, and you'll get to your EBITDA.”

Her advice: Manage to revenue first and cost second.

 

About this Industry Leader:

Margaret McGuckin - Profile Pic

Margaret McGuckin

Strategist & DSO Consultant, i3 Ignite

Margaret McGuckin and her business partner, Kathy Lynn-Cullotta, are the co-founders of i3 Ignite. They've worked as an advisory team for the past four years across multiple industries. i3 Ignite advises DSOs and large group practices as they try to stay on the path of profitable growth while navigating the complexity of executing a multi-location, multi-business model organization.

As the founding COO of ClearChoice Dental Implant Centers, a consumer-based DSO, Margaret steered the organization from 1 to 31 locations in 14 states in a 4-year period, generating over $130 million annually. She built their platform and was responsible for managing consistently and successfully to the Playbook, ensuring culture and performance for both de novo and acquired practices. As a C-Suite executive, Margaret led teams that rapidly developed and scaled up innovative businesses in several industries including local media and health care.

Turn More Callers Into Patients

Discover how to increase your new patient revenue.

REQUEST A DEMO

Access More Than 900 Videos

psd-005-010729-png

Patient Prism Academy's Learning Management System features hundreds of training videos from top industry experts.

ENROLL NOW