As part of a collaboration with business analytics provider, Gaidge, after each calendar quarter and full calendar year the AAO receives and shares with members key metrics compiled from a subset of Gaidge client practices. The purpose of the collaboration is to aid members with assessment of practice health, short-term and long-term goal-setting and other key practice processes.*

Gaidge describes 2022 as a “give-back” year. Last year’s report on 2021 Gaidge client practice metrics showed many double-digit percentage increases, including areas of growth exceeding 20-30% over 2020 metrics. Practices may have been experiencing pent-up demand and the impact of the “Zoom effect” as adults observed the look of their teeth during virtual meetings after the COVID-19 pandemic began.

2022 Report Shows the Challenge of Extending High 2021 Success Rates
While Gaidge practice metrics show almost universal decreases vs. 2021, the decreases are nearly all single-digit percentages with many below 5%. Metrics of note for the full year 2022 include:

● Patient starts decreased from 2021 by -1.9% in single-doctor practices and by -6.6% in multi-doctor practices.
● Net production from 2021 by -.1% in single-doctor practices and -4.3% in multi-doctor practices from 2021;
● New patient exams decreased by -1.7% in single-doctor practices and -6.4% in multi-doctor practices, as compared with 2021;
● Net collection continued to grow as a result of strong 2021 starts, up 5.8% in single-doctor practices and 1.3% in multi-doctor practices over 2021;
● Aligner starts decreased by -6.0% in single-doctor practices and -11.2% in multi-doctor practices from 2021.

View Gaidge’s Full-Year 2022 Metric Report

Q4 Trends Show Consistency with Full-Year 2022 Metrics
Overall, during the 4th quarter of 2022 most metrics were consistent with the full-year Gaidge client practice data, including:

● Patient starts in Q4 2022 decreased by -2.4% in single-doctor practices and by -4.4% in multi-doctor practices from Q4 2021;
● Net production decreased -1.2% in single-doctor practices and -3.6% in multi-doctor practices from Q4 2021;
● New patient exams decreased by -3.7% in single-doctor practices and -3.7% in multi-doctor practices, as compared with Q4 2021;
● Net collection, a positive metric during 2022, began to slow in Q4. Collections increased 2.4.% in single-doctor practices over Q4 2021 but were nearly flat in multi-doctor practices, where collections decreased by -0.3% vs. Q4 2021;
● Q4 aligner starts decreased by -8.9% in single-doctor practices and -12.9% in multi-doctor practices from Q4 2021.

View Gaidge’s Q4 Practice Metrics Report

Positioning Your Practice for Success in 2023: Explore Conversion Growth
Gaidge notes that, “After a record 2021 and a give-back 2022, 2023 appears likely to return to normal growth rates of low single digits.” 

Economic uncertainties such as the depth of a widely forecast recession may impact practice success. Keeping up with collections is key. Gaidge observes that inflation did not appear to have an impact on patients paying during 2022.

In addition, conversion rates have continued to decline after reaching very high levels in the early stages of the COVID-19 pandemic. Conversion returned to more historical levels during Q4 2022 at 65.7% in single-doctor practices and 67.0% in multi-doctor practices. Gaidge advises developing a strong understanding of your patient funnel and establishing solid processes and systems to ensure a high percentage of your interested patients begin treatment.

The following lectures from the AAO On-Demand CE Catalog may be helpful for assessing processes for turning prospective patients into treatment starts, and overall preparation for practice success in 2023:

“7 Steps to Revolutionize Your New Patient Conversions”
Presenter: Ms. Beth Leach
Recorded: December 2022 AAO webinar
Cost: FREE to AAO members

“How Orthodontic Practice Owners Can Prepare for a Potential Recession“
Presenters: Mr. Chris Bentson, Mr. Doug Copple and Ms. Shannon Patterson
Recorded: September 2022 AAO webinar
Cost: FREE to AAO members

For more on state-of-the-art approaches to conversion and other key aspects of practice management, plan to attend the 2023 Annual Session. Lectures in the Annual Session Business Success attendee path will include:

“Connecting with the Untapped Millennial Market: Simple Strategies to Boost Conversion and Lifetime Value in Your Practice”
Presenter: Ms. Audrey Neff

“The Right Line-Up for Pre- & Post-Exam Sales Success”
Presenter: Ms. Kayla Hoorelbeke

*The subset of Gaidge client practices included in reports prepared for the AAO includes:
● More than 300 single-doctor practices under $1 million in quarterly productivity; and
● More than 200 multiple-doctor practices with up to 10 locations.