Increase Productivity-Increase Satisfaction1 A Dental Incentive System that Works Juris M....

Increase Productivity-Increase Satisfaction

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A Dental Incentive System that Works

Juris M. Svarcbergs,DMD,MPHDental DirectorCAMcare Health Corporation


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Background

The early years ‘Do gooders’ Focus on ‘ideal service’ Dedication to cause or

philosophy


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Background

Traditional professional ‘formula’ Work in itself a reward (a non-monetary incentive)

Salary adequate compensation(your paycheck is the reward)

Administration outlook(we’re not the private sector)


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Background

The Changing Times Burdened with debt Graduates Business oriented Dentists MBA Administrators

The realization:“To do Good, we must do Well!”


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Driving Forces in today’s environment

Decreased grant funding opportunitiesMainstreamed care delivery

Competition for patients Competition for revenue

Increased opportunity for Revenue generation


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The New Environment

020,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

Profitability

GoalActual

Cost Center Analysis


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DENTAL PRODUCTIVITY

Target is 2,400/DDS

Annualized Rate: 2,639 enc/DDS


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Improvements in MIS, CIS

Enable accurate dental data collection

RVU capabilty for correlation of amount of care with visit info

Provider profiles


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Why not become …… competitive in today’s environment withMOTIVATED and EFFICIENT PROVIDERS!?!


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Let’s Try an Incentive System!

Money always works!

Should we Increase salary?

Should we consider commissions?

How do we tie work produced to paycheck?


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The Dilemma(s)

Increased Revenue can only be generated withAdministrators don’t want to lose

over expendituresProviders don’t administrators to share income or ‘commission's’ fairly


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Available Incentive Systems

% of Provider generated charges % of collections of Provider’s production “x” % of Medicaid income“y” % of Self Pay income$’s per R.V.U. generatedThe ‘mathematician's dream’ formula


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Satisfaction

Can you really be happy if you Can’t figure out your take

home pay or bonus Can’t ‘trust’ the figures of

billing or admin people You have to treat some

patients in ways to benefit your income


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Real Life


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How to Build an Effective Incentive Program: The “5 Commandments”

Simple and easy to understandAllay administration fearsEmpower providersMake the reward memorableRelate the incentive directly to the organization’s income level


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The CAMcare Incentive Plan

Guaranteed base salary: Reasonable and contractual

Good fringe benefits

Health coverage, malpractice,CME time & coverage, pension

SecurityBudgeting

Goodwill and competitive edgeOnly one concern-PRODUCTIVITY


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The CAMcare Incentive Plan

Quarterly Goals

Quarterly Payout

600 visits/ FTE (not 599!!)

(individual provider not group average)

10% of base salary in contract-exactly

(prorated for quarter i.e 2.5% of annual base salary)


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‘Bonus Payout’ Example

Dr. XYZ had 645 patient visits this quarterAt $80K contract/yr, Dr.XYZ rec’d $20,000 in base salaryReaching/Goal gets $2,000 Bonus

CHC submitted bill for approx. $64,500 to all payorsCHC expects to get min. 2.5 times what pays out docsCHC gets $42,500

(Doc gets $22,000)


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Special Request for Payout!

Goal Achievers:


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Bonus is Recognition of Achievement

Bonus checks are separate and usually presented by CEO


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And it’s part of total Package

Professional Compensation Package:1. Base Salary $ 80,0002. Health Coverage 5,6043. Soc.Security Taxes 4,1424. CME Allowance 1,5005. Vacation,CME,Personal,

Holidays,Sick, time 8,9416. Malpractice Coverage 3,800


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Add up Total Package

Total Value………………$ 103,987If Loan Repayment-add 25,000TOTAL Package without Bonus: $128,987 !!!

Is another $ 8,000 worth the effort???


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Results: Avg.Encounters/DDS

1,0001,2001,4001,6001,8002,0002,2002,4002,6002,8003,000

Visits/ DDS

1998199920002001


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Results: RVU’s per DDS/yr.


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Results: DDS’s reaching goal

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

1998 1999 2000 2001

1998

1999

2000

2001


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DENTAL VISITS by Year

10000

10500

11000

11500

12000

12500

13000

13500

14000

14500

1998 1999 2000 2001

1998199920002001


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The Bottom Line: Dental Cost Center $ EPI (profitability)

0

10,000

20,000

30,000

40,000

50,000

60,000

1998 1999 2000 2001

EPI/ DDS


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CAMcareRevenue & Expenses

1997 1998 1999 2000 2001

Year

8

9

10

11

Millions

$

Revenue

Expenses

CAMcare Health CorporationAnnual Revenue vs Expense


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S = R/E Choose a ‘goal’ that directly influences the organization’s income level Offer a definite bonus amount that is ‘BIG’ yet ‘small’ Support providers in achieving goal

at every level


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S = R/E Make the reward memorable

(timing, amount, presentation)

Report to Board as a “Dental Department defining” event!

(Dental exceeds expectations)


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Who are the ‘Satisfied Customers’?

Providers (and support staff)

CEO

CFO

Board

Patients

Community


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Simply Satisfying!

Increase Productivity-Increase Satisfaction1 A Dental Incentive System that Works Juris M....

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