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.
Q2 2022 Shows Sustained Growth in Collections and Receivables
Similar to the first quarter of 2022, collections and receivables were the most positive part of Gaidge’s second quarter-2022 practice data:
● Continuing to feed off very successful 2021 new patient starts, single-doctor net collection grew by 5.1% over Q2 2021 while in multi-doctor practices, collections increased by 3.5%. Record inflation didn’t appear to have an impact on patients’ ability to pay.
● Single-doctor receivables grew by 15.2% while multi-doctor practice receivables increased by 13.5, as compared with Q2 2021%.
With the U.S. unemployment rate continuing to be 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.
Also of note: Practices were able to successfully raise their overall fees during the past quarter (3.7% in single doctor practices and 2.2% in multi-doctor practices) to help offset inflationary pressures. Gaidge expects inflation to be a factor for all of 2022, but ii is predicted to ease as we move through the year.
Q2 Treatment Metrics Fall Short of Outstanding Metrics for Q2 2021
Gaidge clients’ very successful Q2 2021 in comparison with Q2 2020 (as practices re-opened with pandemic protocols in place) proved challenging to match in the 2022 vs. 2021 metrics. There were some positive observations from Gaidge concerning the recently ended quarter, however:
● Single doctor practices started to show growth as Q2 2022 ended in June.
● Other key indicators within the new patient starts funnel (new patient calls, exams and starts) remained below 2021 levels this year, but gradually improved over the course of Q2.
Production-related metrics for Q2 2022 included:
● Net production in single-doctor practices decreased slightly during Q2 2022 by -2.7%, in comparison with Q2 2021. Multi-doctor practices’ net production saw a decline of -5.8% against Q2 2021. (Gaidge reported the same metrics for Q2 2021 grew by 65.7% and 92.5.%, respectively, over Q2 2020.)
● Single-doctor practices’ total patient exams declined by -4.2% in Q2 2022 against Q2 2021, while in multi-doctor practices, exams were down -8.3%. (Gaidge reported the same metrics for Q2 2021 grew by 93.5% and 126.7%, respectively, over Q2 2020.)
● Single-doctor practices’ total patient starts declined by -5.9% in Q2 2022 against Q2 2021, while in multi-doctor practices, exams were down -8.3%. (Gaidge reported the same metrics for Q2 2021 grew by 61.6% and 86.2%, respectively, over Q2 2020.)
Within the starts category, it is notable that aligner starts for Q2 2022 were down by -9.7% in single-doctor practices and by -9.0% in multi-doctor practices. (Gaidge reported the same metrics for Q2 2021 grew by 98.7% and 130.4%, respectively, over Q2 2020.)
View Additional Q2 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 cohorts are enrolling now for August 24 and September 21 start dates, so register to secure your place.