This article was originally published on Group Dentistry Now on November 30, 2021.
Pulling together dental practice data from multiple systems can take months, and after you gather all that data, you still have to compare it to your own data. A dental data analytics platform can dramatically accelerate the due diligence process at every step.
Financial and clinical due diligence can be time-consuming and tedious for any dental organizations growing through mergers and acquisitions (M&A). In fact, the average time before you can start seeing patients after a thorough due diligence process is anywhere from nine to twelve months. Some unique situations can take even longer.
To start, you have to pull together dental practice data from multiple practice management systems — and after you gather all that data, you still need to compare it to your organization’s data and your own definition of success metrics. What if there were a way to speed up your due diligence process, and save time and money?
A dental dashboard speeds up the due diligence process at every step, from helping you gather data to comparing key performance indicators (KPIs) from your organization and the practice to be acquired. Here are four ways a dental dashboard can help you save time during the due diligence process.
1. Streamline the Data Collection Efforts
A dental analytics platform can significantly reduce the amount of time you spend on due diligence by streamlining your data collection and analytics efforts. It can help give you what you need when and where you need it — all just by plugging it into a practice management system — so you can stay organized. A system-agnostic dental dashboard (instead of a tedious spreadsheet) that plugs into any practice management system can help you collect, compare and rank data and metrics as well as create a full picture of the practice — past and present — so you can make informed decisions.
2. Establish a Common Data Language
What is your New Case Acceptance definition? Does it match with the other organizations? A dental dashboard can reduce time spent on due diligence by helping you make sure the practice’s data is “speaking the same language” as your organization’s data. Here, the beauty of a dashboard lies in being able to compare multiple practice management systems and their data, even if those systems vary. An effective dashboard will help “translate” the languages — normalizing and creating a common data definition. Then you can compare data like KPIs and know they mean the same thing to you as they do to the practice.
3. Compare Performance Production Standards to Yours
With a dental dashboard, you’re better able to measure standards across all your organization’s providers and locations, so you can quickly see whether a new practice will fit your standards. An effective dashboard makes this easy by establishing a baseline for your organization’s KPIs that will help you quickly and easily compare outside KPIs to yours. This automated process can save you valuable time during due diligence by connecting directly to a practice’s existing practice management software, allowing you to see how well a provider is performing based on metrics and benchmarks you’ve already set up for your existing locations.
4. Make it Easier on the Doctor
An effective dental dashboard makes the merger or acquisition easier on the doctor — saving you administration and communication time during the due diligence process. In the old days of M&A, doctors would stay late every night, printing off every practice report on ream after ream of paper to give your organization the data you need. With a dashboard to access the office’s existing practice management software, you can pull their data (no printer required!) so the doctor can rest easy knowing you are getting everything you need.
For practices looking to be acquired, proactively adding a dental dashboard to their practice management software makes this process even easier. These practices are attractive to prospective buyers because you can see the data you need, in a shared language, and how it compares to their DSO immediately — saving them time.
Grow Faster with Jarvis Analytics
As you can see, the due diligence process is extensive. Between managing, measuring and comparing metrics, data and essential KPIs, merging with or acquiring a practice can take months. When you streamline and simplify with Jarvis Analytics, an all-in-one solution that includes the essential capabilities expected from an effective dental dashboard, you can greatly save time on the due diligence process.
The Jarvis Analytics platform connects you to practices you are interested in forming a partnership with to reduce the amount of due diligence time and effort from months to just a few days. Jarvis Analytics connects you to different practice management systems to help you quickly gather and interpret data so you can grow your DSO with ease.