the specialist purchase your computer hardware from a large reputable company or custom build your CPUs (central processing units)? CPUs from large, reputable manufacturers come in a variety of sizes, ranging from large to very small, to fit every possible situation. A custom-built CPU starts with a “white box,” which generally comes in two sizes, large or medium. A white box won’t have a manufacturer’s name on the outside, because it is typically made up of components (such as the processor, hard drive, and video card) from a variety of manufacturers. A technology specialist may build their own CPUs to gain a pricing edge over the competition. He or she can piece together various components that may be on sale or discounted to produce a less expensive CPU. If these components are compatible — and that’s a big if — another concern involves warranty issues. If a technology specialist who builds their own computers goes out of business, you have no warranty coverage for these CPUs, while CPUs purchased from a reputable manufacturer still have applicable warranty coverage.
If you purchase custom-built CPUs, your technology specialist must get involved with the custom cabinet design throughout your new office to ensure that these CPUs fit inside the cabinets where indicated, with adequate room for air ventilation.
Be sure your technology specialist offers adequate backup support. Is someone available to either immediately fix your problem from a remote location or send service people to your office on short notice?
If your practice is a HIPAA covered entity, you will require a business associate agreement with your technology specialist if he or she will have access to patient information. Work with a qualified attorney to develop appropriate business associate agreements with any outside individual or entity who will have access to protected health information (PHI) as defined by HIPAA, which can include dental records, images and radiographs, billing records, and insurance information such as explanations of benefits (EOB). HIPAA requires covered entities to safeguard PHI in electronic, hard copy, and spoken form.
Planning for technology installation in your new office takes a great deal of research and due diligence. The first step should be to understand the practice management software and capture (imaging) software, the foundation of any digital office.
Accountant
Your accountant should be a certified public accountant (CPA) who has lots of experience with dentists. One who has served dentists opening a new practice is an even bigger plus, especially when you are in the process of developing a business plan for your lender. Ask several of your colleagues who they use and if they’re happy with the firm’s service. Don’t focus solely on cost because a good accountant can save you a small fortune in tax savings over the years.
Dentists who open a new dental office often underutilize the services offered by their accountant. A CPA can help you determine the length of loan that best suits your particular needs. A CPA can also help you decide how much new dental equipment would be wise for you to initially invest in, based on current tax laws and your unique tax situation.
Attorney
Some dentists begin looking for an attorney only when things go badly. When opening a new dental office, though, there are several instances in which using an attorney can be of great value. You can call your local bar association for a list of attorneys who have experience with the specific service that you’re interested in, and ask colleagues about the attorneys they have used for similar matters.
An attorney can:
Negotiate agreements with landlords or sellers, suppliers, and with team members such as your architect and contractor
Analyze any alternative to the A.I.A. bond that a contractor may recommend
Negotiate or review loan documents
Review any other contracts pertaining to your practice
Practice Management Advisor
Hiring a practice management advisor is optional for a dentist opening a new dental office.
Services that may be of benefit to busy dentists include:
Interviewing and hiring new office employees
Completing paperwork for third-party contract services
Training staff
Creating a personnel manual
Developing office policies
Marketing your new practice
The key to any dental marketing strategy is to reach out to your preferred patient niche while maintaining a high degree of professionalism. For a potential patient to take notice, you will need to be creative. A great source of information to help you reach your preferred patient niche and select the most effective medium of advertising is available through a professionally-analyzed demographics report. Many practice management advisors charge a small fortune doing little more than direct mailings or discount coupons in magazines. A creative marketing message offered through the most effective medium available will help set you apart from the “junk mail” dental postcards lying in the recipient’s mailboxes.
A qualified attorney should also be consulted for certain of these services, such as your personnel manual, training programs, and marketing.
Summary
Building a new dental office is a challenging and expensive project, one that requires a tremendous amount of planning, coordination, and supervision. Understanding the vital role of each vendor, and anticipating and controlling the inherent pitfalls associated with new dental office development will help you complete your project on time and on budget.
Contributor Biography
Gordon F. Osterhaus, Jr., D.D.S., opened an office in Glendale, Arizona, starting from scratch, and practiced general dentistry as a sole proprietor for 20 years. He subsequently gained extensive experience in dental equipment sales, which inspired a career in new dental office project management. To date, Gordon has overseen the development of 80 new offices. He is founder and past president of Valley Dental Consulting Services, Inc., founder of GFO Publishing, LLC, and has recently attained Lifetime Member status from the American Dental Association. Gordon’s new book titled How to Open a New Dental Office or Relocate Your Current One: A Journey Through the Dark Side of Dentistry is available online at: www.valleydentalconsulting.com.
Cited Resources/Recommended Readings
Academy of Dental C.P.A.sc/o Schiff and Associates, L.L.C. Allen M. Schiff, C.A.P., C.F.E. 100 West Road, Suite #410 Baltimore MD 21204 Phone: 410.321.7707 Email: [email protected] Website: www.adcpa.org
American Institute of Architects (A.I.A.)1735 New York Ave., NWWashington, DC 20006-5292Phone: 800-AIA-3837 or (202) 626-7300Email: [email protected]Website: www.aia.org
