SWOT Analysis for Your Practice

You never want the SWAT (Special Weapons And Tactics) team knocking down your practice door but you should review your practice SWOT (Strength, Weakness, Opportunity, Threat) matrix every few years to ensure you are guiding the practice in the right direction.

While a true SWOT analysis is specific to your practice, here is a partial SWOT analysis on the current dental industry so you can consider how it may affect your practice.

STRENGTH

The US population is expected to grow by 6.8% from 2020 to 2030 and the population of Americans over 65 is expected to grow by 31% as the Baby Boomers (1946-1964) all reach retirement age. This generation has amassed great wealth along with an unprecedented desire to live long and healthy lives. These older patients tend to need and want more restorative dental care.

Advice - Ensure that your practice is focused on this population base in the short term but diversify across generations to ensure long term success.

WEAKNESS

With nearly 75% of American having dental insurance, the power of the insurance companies is tremendous. That power gives them the ability to cut your UCR rate by 20% to 50% depending upon your geographical region if you want to be in network. Beyond the lower rates, studies have shown that those with dental insurance visit the dentist more frequently but the average production value is lower than the uninsured.

Advice - Review your in-network insurance contracts on an annual basis to ensure that they still provide profitability as well as work towards creating a strong practice that fills your chairs via patient referrals and not insurance contracts.

OPPORTUNITY

Technology is always pushing forward and the dental industry is no exception. From the Conebeam to the Mills to AI treatment tools, technology is here to improve your patient outcomes and satisfaction.

Advice - If you want to set your practice apart & get out of those bad in-network contracts, continue investing in your skills and upgrades to the equipment to provide the best patient experience.

THREAT

You went into medicine to help people live healthier lives but the double edge sword of preventative care is a threat. New advances in preventative care are helping to give patients great outcomes before the need for implants or gum treatments but those preventative solutions do not provide a significant revenue stream to the practice. As time progresses and you have more health patients, you will have less profitable dentistry to do.

Advice - Continue to uphold your oath as a health care professional but grow your patient base by extending your marketing reach and differentiating your practice.

If you are interested in discuss a SWOT analysis for your practice, please schedule a consultation with JNG Advisors today .