PAGD Keystone Explorer Spring 2020

12 www.pagd.org Q dentistry issues Q dentistry issues Many times, I am asked questions regarding staffing and staff compensation issues. When we were in dental school, nobody ever told us that we would have to be a human resource professional, but that is exactly where many of us find ourselves. Decisions about hiring and firing, as well as salaries, insurance, retirement planning, and bonuses must be made. Each of these issues are complicated and specialized in their own right, so I will do my best to simplify and address each of these issues as succinctly as is possible in the space that I have. Let’s discuss each of these important subjects starting with salaries. Total staffing costs are normally in the 24% range of gross (total) income. It is important to note that this number fits into a range and is by no means an absolute figure. The growth of managed care plans in the market today has caused these percentages to slowly shift higher. The cause for this is that payment for procedures has decreased, but due to the increased need to provide these services and being forced to see an ever increasing base of patients to make ends meet, we have had to hire more staff thus pushing that range upward toward the 30% level. Even if we don’t accept plans, many times certain employees are worth extra pay due to their expertise, or patient skills, and will cause the ranges to skew to the upside as we reward these staff members. Improved office management with increased scheduling skills can improve efficiency which can decrease these percentages. Well-run offices many times operate their offices at a 20% staff compensation level. The important take away here is that staffing compensation is in a range and not an absolute number. However, this is singularly the largest area of the dental budget and should be scrutinized the most. Overstaffing has choked many practices that I have seen. Remember to include staff benefits whenever you calculate staff compensation as it is part of the total compensation package. Speaking of benefits, these costs for these programs can vary widely. Many times, the decision to offer certain benefits is dependent upon those benefits offered by Staff Compen$ation By John Portwood, DDS, MAGD