How to Determine If Your Practice is Thriving or Failing

Running a successful dental practice goes beyond providing excellent care—it requires careful monitoring of key performance indicators (KPIs) to gauge financial health, patient satisfaction, and overall growth. Without data-driven insights, you may not recognize inefficiencies or missed opportunities until it’s too late.

Below are the most critical metrics to track to determine whether your practice is thriving or failing.

1. New Patient Acquisition

Why It Matters:

New patients are the lifeblood of any dental practice. A steady flow of new patients indicates healthy demand and business growth.

KPI to Track:

• Number of new patients per month

• Referral sources (word-of-mouth, digital marketing, insurance networks)

Benchmarks:

• Thriving: 25+ new patients per month

• Struggling: Less than 10 new patients per month

2. Patient Retention Rate

Why It Matters:

A high retention rate means patients are returning for regular visits, boosting long-term revenue and patient trust.

KPI to Track:

• Percentage of active patients returning for routine visits

• Recall effectiveness (how many patients schedule their next visit before leaving the office)

Benchmarks:

• Thriving: 80%+ retention rate

• Struggling: Below 50% retention rate

3. Case Acceptance Rate

Why It Matters:

If patients aren’t accepting treatment plans, it impacts both patient health and practice profitability.

KPI to Track:

• Percentage of patients accepting recommended treatments

Benchmarks:

• Thriving: 75%+ acceptance rate

• Struggling: Below 50% acceptance rate

4. Production vs. Collection Ratio

Why It Matters:

Your production may be high, but if collections are low, your practice may struggle with cash flow.

KPI to Track:

• Total billed treatment vs. total payments collected

Benchmarks:

• Thriving: 98%+ collection rate

• Struggling: Below 90% collection rate

5. Average Revenue Per Patient

Why It Matters:

This metric helps measure the overall value of each patient and whether your practice is maximizing revenue opportunities.

KPI to Track:

• Total revenue divided by number of active patients

Benchmarks:

• Thriving: Increasing over time

• Struggling: Declining year over year

6. No-Show and Cancellation Rates

Why It Matters:

Frequent no-shows and last-minute cancellations lead to lost revenue and inefficiencies.

KPI to Track:

• Percentage of missed or canceled appointments

Benchmarks:

• Thriving: Less than 5% no-show rate

• Struggling: More than 15% no-show rate

7. Online Reviews and Reputation Management

Why It Matters:

A strong online reputation attracts new patients and builds credibility.

KPI to Track:

• Average star rating on Google, Yelp, and other platforms

• Number of new reviews per month

Benchmarks:

• Thriving: 4.5+ star rating with consistent new reviews

• Struggling: Below 4.0 stars with few new reviews

8. Overhead and Expense Management

Why It Matters:

Even high-revenue practices can fail if overhead costs are too high.

KPI to Track:

• Percentage of revenue spent on overhead (staff, rent, supplies, marketing)

Benchmarks:

• Thriving: Overhead below 60% of revenue

• Struggling: Overhead above 70% of revenue

9. Employee Productivity and Satisfaction

Why It Matters:

An engaged and productive team leads to better patient experiences and increased efficiency.

KPI to Track:

• Production per employee

• Staff turnover rate

Benchmarks:

• Thriving: Low turnover and high productivity per team member

• Struggling: High turnover and low productivity

10. Referral Rate

Why It Matters:

Happy patients refer friends and family, leading to organic growth.

KPI to Track:

• Percentage of new patients coming from referrals

Benchmarks:

• Thriving: 30%+ of new patients from referrals

• Struggling: Below 10%

Conclusion: Data-Driven Success

Tracking these essential KPIs helps you understand the health of your practice and take proactive steps to improve. If you’re struggling in one or more of these areas, don’t panic—identify where changes are needed and implement strategies to get back on track.

By consistently monitoring performance metrics, you’ll ensure your practice thrives, providing high-quality care while maintaining financial success.