How To Grow Your NHS Dental Practice
So here's the big question how do you grow your NHS Dental Practice? Unless you are in the fortunate position of being offered more UDA's effectively there is no growth in NHS dentistry.
I recently attended an event in Portugal where one of the speakers was talking about the new contract and how it could affect your NHS Dental Practice, the upshot of it is that there is very little information coming out of the Department of Health but one thing that we do know is that the OFT have questioned why NHS Dental Practice contracts have no effective end date.
So based on this one fact we are pretty sure that when the new contract comes into play (whenever that is) they will be for a fixed term. This could have serious consequences for those with an NHS Dental Practice now and those looking to buy one.
The biggest issue is the banks willingness to lend. At the moment the banks look very favourably on anyone wanting to borrow money to buy an NHS practice based on the current contract e.g. it lasts forever. If the new contracts are fixed to say three or five years, that puts a completely different perspective on the view of a bank who is looking to loan money to purchase an NHS Dental Practice or even fund expansion.
So if you are going to visit your local bank manager for extra funding and you now have a contract which is only guaranteed for a set number of years how do you convince him or her to lend you money to grow your NHS dental practice? The answer is it is going to be a lot more difficult then it is now.
But lets look at the concept of just carrying on with your NHS Dental Practice. How many businesses do you know that don't want to or can't grow? If you can't grow your business you are not just standing still you are actually going backwards. Whilst the UK inflation rate is now at a reasonable 1.8%, over the past four years the average has been running closer to 4%.
So if your business had had the same income during that period you have seen an overall reduction in revenues and profits of between 12% and 16%, which will not please you or your bank manager.
Certainty of income is a massive plus for having an NHS contract but it still won't grow your NHS Dental Practice. Most businesses would look enviously at a business such as an NHS practice simply because at the beginning of the financial year you can say exactly how much you are going to earn by the end of the financial year. I really don't know of any other business that can do that so it is a massive plus.
However whilst you know that if you achieve your UDA's you will earn exactly what you thought you were going to earn, it is still static and with inflation falling.
The event I was at in the Algarve was attended by most of the large corporate groups and all had concerns about the future of income from the NHS and were embarking on plans and looking for ways to grow your NHS Dental Practice for all the reasons I have outlined above.
I will tell you more about how to grow your NHS dental practice in the next publication.
If you would like to know more about how you can grow your NHS dental practice or private practice, call me on 01767 626 398 email me at email@example.com or visit the website www.dentalmarketingexpert.co.uk