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. This subset 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.
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.
Q1 2022 Shows Growth in Collections and Receivables
Collections and receivables are the most positive part of Gaidge’s first quarter-2022 practice metrics data:
● Single-doctor net collection grew by 6.5% over Q1 2021 while in multi-doctor practices, collections increased by 1.6%.
● Single-doctor receivables grew by 19.9% while multi-doctor practice receivables increased by 25.7%.
With the U.S. unemployment rate down to 3.6%, it is likely that many patient families are capable of paying fees owed. Gaidge encourages practice owners to continue strong efforts to collect on receivables in order bolster practice financial health.
Q1 2022 Treatment Metrics Fall Short of Outstanding Metrics for Q1 2021 Inflationary pressures, financial market uncertainty, and the war in Ukraine are among factors cited by Gaidge as impacting the U.S. market, including consumer choices to begin orthodontic treatment or initiate treatment for children. In addition, Gaidge notes that clients’ very successful Q1 2021 makes it unsurprising that Q1 2022 would fall short in comparison:
● Net production in single-doctor practices decreased slightly during Q1 2022 by -0.4%, in comparison with Q1 2021. Multi-doctor practices’ net production saw a decline of -7.2% against Q1 2021. (Gaidge reported the same metrics for Q1 2021 grew by 21.7% and 27.9%, respectively, over Q1 2020.)
● Single-doctor practices’ total patient exams declined by -2.2% in Q1 2022 against Q1 2021, while in multi-doctor practices, exams were down -8.4%. (Gaidge reported the same metrics for Q1 2021 grew by 16.0% and 32.2%, respectively, over Q1 2020.)
● Single-doctor practices’ total patient starts declined by -2.1% in Q1 2022 against Q1 2021, while in multi-doctor practices, exams were down -9.2%. (Gaidge reported the same metrics for Q1 2021 grew by 17.0% and 33.4%, respectively, over Q1 2020.)
Within the start category, it is notable that aligner starts for Q1 2022 were down by -6.5% in single-doctor practices and by -17.2% in multi-doctor practices. (Gaidge reported the same metrics for Q1 2021 grew by 44.6% and 50.0%, respectively, over Q1 2020.)
View Additional Q1 2022 Metrics from Gaidge
* Interested in deepening your business knowledge to increase the health of your practice? Consider enrolling in the Wharton-AAO Mastering the Business of Orthodontics program. This eight-week course features faculty from the University of Pennsylvania Wharton School of Business, paired with orthodontic practice management experts. Two Fall 2022 cohorts are enrolling now.