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MailAugust 2021--The mission of Peak Dental Services® is to help dental practices run smoothly and efficiently by supporting dentist leaders so these dentists can focus on providing the highest patient standard of care, developing an optimal practice culture, and achieving work life balance. At the recent Dykema DSO conference (July 2021), Patient Prism’s CEO, Amol Nirgudkar, interviewed two Peak Dental Services executives—its CEO, A.J. Peak, and its COO, Amber Collins. During this conversation, they talked about what drives this dental service organization’s growth success and the financial success of its currently 45 affiliated dental practices.
Peak Dental Services was founded in 2008 by dentist Dr. Douglas Peak and his son A.J. Peak, a Kellogg School of Management MBA and former McKinsey and Company consultant. Peak Dental Services provides business support services to dental clinics and leadership training to dentists. The company offers marketing services, call-center support, recruitment services, insurance, and accounts receivables management, insurance credentialing, payroll, IT support, and accounts payables and bookkeeping. But performing these business functions for the practices in the Peak Dental Services organization is not all they do.
The Peak Process consists of 18 benchmarked and accountable behaviors
Peak Dental Services has a practice success monitoring process called “The Peak Process.” Each practice is scored on 18 things Peak has determined are essential for consistent dental practice growth across all of its affiliate dental practices, “and it’s this process that drives growth and productive change,” observes Nirgudkar.
This came about, says Collins, because “we would go into one office, realize one or two things weren't working, and then go to the next office and find those two things were working but three other things weren’t. And it's really just as basic as answering the phones. We identified the 18 things that are the most important to do well, and our regional managers hold people accountable.”
Peak has established red, yellow, and green benchmarks on these 18 aspects of practice and manages the affiliates individually to move red to yellow and yellow to green. Holding every office accountable on a regular basis develops operational discipline.
All of the things on the list are designed to provide patients with the best experience possible. The teams in each office understand that “we’re not here without our patients,” says Collins. “Going back to the example of answering the phones, if you're not answering the phones, you're not providing the best patient experience. Motivating our teams is about getting them to understand why we're doing things. They also understand that if you're not keeping on top of these things, your job is a lot harder.
Like other DSOs, Peak works across multiple data platforms
At the Dykema DSO Conference 2021, a lot of conversation among attendees was about the need for data normalization and a central platform for aggregating and analyzing data. Peak, like other dental service organizations, is facing this challenge. Recently Peak’s affiliate offices moved to one practice management system which is helping with data centralization, but data flow from their entire technology stack isn’t yet automated.
“Currently, we have different department data that flow it into our scorecard around patient experience, employee engagement, and productivity,” says A.J. Peak. “All three things are really important in the business, and then there’s our financial metrics. So today, we're semi-automated and semi-manual, but at least once a week, we're getting a snapshot of the holistic set of metrics that no one system today provides.”
Peak metrics are used to not only monitor behavioral and financial success but also do budget forecasts. Forecasting starts with patient visits per hour and patient visits per provider and factors in vacation days, to set objectives for the forthcoming quarters at each dental location. Forecasts have been running within three to four percent of the actual numbers.
Peak aims to be the employer of choice
Forecasting plays into recruiting as well. “We need a lot of hygienists for growth, and our schedules are currently booked out. So, recruiting is one of the top three things we’re working on,” says A.J. Peak. “With the current shortage of hygienists, I would say the winners in this are hygienists. I think this might be a three to a five-year issue. And it's like any war for talent in any industry. Nursing has gone through it, et cetera. We need to do what's necessary to be the employer of choice. Whether that is giving them the tools and flexible schedule they desire or competitive compensation and benefits.”
Peak says they are engaging and leading their dentists in taking ownership over creating an environment where hygienists like to work.
Peak focuses on dollars per visit and net promoter scores
“In terms of production per hour, DSOs do better,” says Nirgudkar. It’s not just a function of case acceptance but also scheduled to do more comprehensive care…more needed procedures during a single appointment slot that optimizes the dentist’s time.
“One of the things we've migrated to is dollars per visit,” says A.J. Peak. Dentists don’t always believe that thinking in terms of dollars per visit versus patients per hour or dollars per hour will drive more production. Peak reports each provider’s data with a ranking score, so each provider can see how they compare to other Peak providers.
A net promoter score is obtained from each patient at each patient visit, using Podium software. Patients are asked to score the likelihood they will refer someone else to that office.
“We’re fanatical about measuring net promoter scores,” says A.J. Peak. “We’re able to show them data that drives behavioral change.” Providers believe the value of the change when they see a dentist who is doing $800 an hour has a higher net promoter score than a dentist who is doing $300 an hour and has a lower net promoter score.”
Patient Prism takes Peak’s call center to 90% conversion
Another success driver for Peak Dental Services has been Patient Prism. Peak recommends Patient Prism to its affiliates. When a new affiliate joins the organization, Peak sets up pilot Patient Prism usage with the call center.
“Everybody says yes to a pilot,” says A.J. Peak. “They might be scheduling 70% without it but within two weeks they see 90% conversion with the call center, so they agree to use the call center.”
“When you started your call center, using Patient Prism, we worked with you to eventually onboard almost all your offices,” says Nirgudkar. “And together we incrementally improved the system. Your call center is the best in the country today, in terms of your scheduled rate.”
Peak acquisitions are predictably successful
The call center is just one aspect of how Peak Dental Services drives predictable growth. “A lot of folks are interested in joining you because you are so confident in the way you execute the acquisition and improve the practice,” says Nirgudkar. “Your path is lucrative. Independent practitioners or a small group practice just don’t have the systems and expertise to optimize both the top and bottom lines.”
“Ultimately, they want to do better financially,” says A.J. Peak. “We do a ton of due diligence. We have a predictive model of how successful a location will be with us. We do almost a 25-page due diligence assessing all the levers we think we could use to improve the practice…We put a ton of energy into making sure that when we buy something, we know with a high degree of confidence we're going to do well in growing it--and not just marginally, but significantly in a perfect world.”
Training is another success driver
Peak has eight core training programs that are ongoing almost weekly, either in person or virtually. When Peak onboards a new practice, “we're trying to get them through all of those trainings, especially our four biggest trainings (that all tie back to patient experience, a team running well, and running the front office well) within the first 90 days,” says Collins. We push training hard because we know even if you implement 70-75% of what you are learning, you're going to have a productivity boost. We know that the patient is going to have a better experience.”
Additional Dykema & DSO Patient Prism Blogs:
- DykemaDSO 2021 Conference - Amol Nirgudkar interviews Mark Costes of Dental Success Network on dental practice growth >
- Peak Dental's metrics and scaling strategy - 2019 Dykema DSO interview with AJ Peak>
- How to create a DSO that dentists want to join >
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