6 Ways to Increase Dental Practice Revenue in 2024
When we talk about increasing dental practice revenue, your first thought might be to ramp up paid advertising or send out direct mail to bring in more patients.
And while those strategies definitely have their place, there’s a lot you can do internally to boost your bottom line without constantly needing to chase new business.
Think about it: your practice is already up and running, but small adjustments in how you operate or manage finances can make a big difference in your revenue.
It could be something as simple as improving your billing processes or offering more high-margin services—those changes can really add up.
Let’s dive into six smart ways you can increase your dental practice revenue by looking inward at your operations, starting with recurring revenue.
1. Focus on Improving Patient Retention and Recurring Revenue
One of the best ways to keep your revenue steady is to focus on patient retention. Think about it: patients who come back regularly for checkups or treatments become a reliable source of income for your practice.
But how many of your patients are actually returning after their first visit?
If you notice a drop-off, it might be time to streamline how you manage patient scheduling and reminders. Automating reminders is an easy way to keep patients engaged. For example, a simple text or email reminding them of an upcoming appointment can significantly reduce no-shows or last-minute cancellations. These missed appointments can quickly add up to lost revenue.
Patient management software can help here. Imagine you’re juggling a busy day, and suddenly a patient cancels without enough notice. Now you’ve got an empty time slot. But if you had sent an automated reminder a few days prior, you might have avoided that gap.
Over time, small improvements like this can lead to more consistent revenue, ensuring your schedule stays full without the hassle of constant phone calls or manual reminders.
2. Maximize Your Billing and Collections Efficiency
As accountants, we’re especially fond of this one: make sure you get all of your money!
One of the easiest ways to increase your dental practice revenue is by tightening up your billing and collections process. If claims aren’t being filed on time or payments are slipping through the cracks, that’s money left on the table.
Start by taking a close look at your current system. Are insurance claims being submitted promptly? Are you consistently following up on unpaid bills?
If not, it’s time for an overhaul.
Work with your dental CPA or office manager to audit your accounts receivable and figure out where things might be falling through the cracks.
You can also streamline the entire process with dental billing software that syncs up with your practice management system. This helps you track everything from insurance claims to patient payments, making sure no dollar goes uncollected.
Remember, every dollar you’re owed but don’t collect is basically money you’ve earned but never see. So let’s make sure you’re not leaving any cash behind.
3. Analyze Your Overhead and Cut Unnecessary Costs
It’s not just about how much you bring in—it’s about how much you keep.
Taking a closer look at your overhead costs can reveal areas where your practice might be overspending.
Think about your rent, utilities, supplies, and even staffing. Are you paying more than you need to in any of these areas?
Start by reviewing your vendor contracts. Are you getting the best deals on dental supplies, or is it time to negotiate or switch suppliers? Even small savings can add up over time.
And what about staffing—are you scheduling efficiently, or do you have more hands on deck than you really need during slower times?
This is where working with a dental CPA can really pay off. They’ll help you dive into your profit margins and compare them to industry benchmarks, showing you exactly where your practice might be overspending. If your costs are higher than average, it’s time to start making changes.
At the end of the day, the more you cut back on unnecessary expenses, the more of your hard-earned revenue stays in your pocket—and that’s always a win.
4. Expand High-Margin Services
One great way to increase your dental practice revenue without working more hours is to focus on high-margin services like cosmetic dentistry, orthodontics, or implants.
These services typically come with bigger price tags and aren’t as dependent on insurance, which means more money stays in your pocket.
Start by analyzing which services are already profitable for your practice.
Do you see a lot of demand for teeth whitening or Invisalign? If so, consider investing in additional training or upgrading equipment to offer more of those high-margin treatments.
The idea is to provide services that not only attract a wider range of patients but also boost your average revenue per patient.
For example, a general cleaning might bring in a steady flow of patients, but adding something like dental implants can significantly increase your profit for each patient who opts for that service.
Plus, patients who come in for one cosmetic service might be more inclined to return for others.
By strategically expanding into higher-margin services, you can grow your practice’s profitability without needing to drastically increase patient volume.
5. Increase Case Acceptance Rates
If patients aren’t saying “yes” to your treatment recommendations, it’s costing your practice revenue. Boosting your case acceptance rates is one of the most direct ways to grow your income, and it all starts with patient communication.
First, take a look at how you’re presenting treatment options. Are patients fully understanding the value of the treatments you’re recommending? A strong relationship with your patients is key here. If they trust you and feel confident in your care, they’ll be more likely to accept your recommendations.
It’s also a great idea to train your staff to handle objections and clearly explain the benefits of each treatment. For example, when a patient hesitates about the cost of a crown, your team can emphasize how the treatment prevents bigger, more expensive issues down the road.
This operational change can have a big financial impact by increasing the number of treatments patients accept—and ultimately boosting your practice’s revenue.
6. Evaluate Pricing and Insurance Participation
When was the last time you adjusted your prices? If your answer is “a while ago,” it’s probably time to take another look. Many practices set their rates once and forget to revisit them, even as costs for supplies, rent, and wages keep going up.
Regularly reviewing your fee schedule ensures that you’re not undercharging for your services and helps keep your practice profitable.
Working with an experienced dental CPA can make this process easier. They can evaluate your pricing structure and compare it to industry standards, making sure you’re competitive without leaving money on the table.
It’s also worth taking a hard look at your insurance participation. Some plans might be bringing in patients but not providing much financial return. If certain insurance networks are paying you so little that you’re barely breaking even, it might be time to reconsider whether they’re worth your time.
In some cases, reducing or eliminating participation in unprofitable networks can actually boost your revenue.
Need Help Increasing Your Dental Practice Revenue?
Running a dental practice is about more than just great patient care—it’s about making sure your financial health is just as strong.
That’s where we come in.
At Core Advisors, we specialize in helping dentists like you identify ways to increase revenue, streamline operations, and get the most out of your hard work.
Whether it’s improving your pricing strategy, optimizing your billing, or cutting unnecessary costs, we’re here to help you make smarter financial decisions that pay off in the long run.
Ready to take the next step?
Get in touch by heading over to our Getting Started page to book a call and see how we can help you increase your revenue and improve your practice’s financial health.
Until next time!
