What is the return on investment of continuing dental education

Okay, so I’m a dentist, about five years out of school. I’m feeling like I’m getting a little…stagnant, maybe? I’m good at what I do, but I see colleagues taking these fancy continuing ed courses – things like advanced implant placement, cosmetic dentistry certifications, that kind of stuff. I’m wondering if the cost of these courses – and the time away from the practice – is actually worth it in the long run.

Has anyone actually calculated the ROI on things like that? I’m talking tuition fees, travel expenses, lost revenue from being out of the office, versus the increased income you might generate from offering new services, attracting new patients, or being able to charge higher fees.

I’m especially interested in hearing from people who have taken specific courses or programs and can share their experiences. Were you able to recoup your investment quickly? Did it take a few years? Or do you think it was ultimately a wash, or even a loss?

Also, are there certain areas of CE that offer a better ROI than others? I’m in a relatively affluent suburban area, if that makes a difference. Thanks in advance for any insights!

Answer

The return on investment (ROI) of continuing dental education (CE) is a complex and multifaceted issue, varying significantly based on several factors. There isn’t a single, universally applicable ROI figure, as the benefits can be both tangible (increased income) and intangible (enhanced skills, professional satisfaction).

Factors Influencing ROI:

• Type of CE Course:

  • Specialized Training: Courses focusing on specific procedures like implants, orthodontics, endodontics, or cosmetic dentistry often have a higher potential ROI because they enable dentists to offer more profitable services. A dentist adding implant services can significantly increase revenue.
  • Practice Management: Courses in areas like marketing, patient communication, team management, or financial planning can indirectly boost ROI by improving practice efficiency, attracting new patients, and increasing patient retention.
  • Compliance and Regulatory Updates: While mandatory for license renewal, courses on infection control, HIPAA compliance, or ethics can protect the practice from legal issues and maintain its reputation, thus indirectly contributing to ROI.
  • Technology Adoption: Training on new technologies (e.g., CAD/CAM, digital radiography, 3D printing) can enhance workflow, improve accuracy, and attract tech-savvy patients, leading to a competitive advantage and increased revenue.

• Cost of CE:

  • Tuition Fees: CE courses can range from a few hundred dollars for online webinars to several thousand dollars for hands-on workshops or multi-day programs. Higher tuition fees require a greater increase in revenue to justify the investment.
  • Travel and Accommodation: Attending CE courses held in distant locations can add significant costs for travel, accommodation, meals, and other expenses.
  • Opportunity Cost: Time spent attending CE courses is time away from the practice, representing lost potential revenue. This opportunity cost needs to be factored into the ROI calculation.
  • Equipment and Materials: Some CE courses, especially those involving hands-on training, may require the purchase of new equipment or materials to implement the learned skills in the practice.

• Implementation Rate:

  • Application of New Skills: The ROI is directly proportional to how effectively and consistently the dentist implements the newly acquired skills or knowledge in their practice. Simply attending a course doesn’t guarantee a return.
  • Marketing and Promotion: If a dentist invests in specialized training, they need to effectively market these new services to attract patients and generate revenue.
  • Team Training: The dentist needs to train the entire team in the new procedures to optimize efficiency.

• Market Demand:

  • Local Demographics: The ROI depends on the demand for the specific services or procedures offered after completing the CE course. A dentist in an area with a high demand for cosmetic dentistry will likely see a greater return on a cosmetic dentistry CE course compared to a dentist in an area with limited demand.
  • Competition: The level of competition from other dentists offering similar services can impact the ROI.
  • Insurance Coverage: Whether dental insurance covers the new procedures learned affects patient access and willingness to pay.
• Time Horizon:
  • Short-Term vs. Long-Term: Some CE courses may provide an immediate boost in revenue, while others may take longer to generate a return. For instance, a course on basic life support might not directly increase income, but it is necessary for licensure and ensures patient safety, potentially preventing costly lawsuits in the long run.

Calculating ROI (General Approach):

While a precise calculation is difficult, a general formula can be used:

1. Calculate Total Investment: Sum of tuition fees, travel expenses, opportunity cost (lost revenue during CE), and any equipment/material costs.
2. Estimate Increased Revenue: Project the annual increase in revenue attributable to the skills or knowledge gained from the CE course. This involves estimating the number of new patients, the number of procedures performed, and the average revenue per procedure.
3. Calculate Annual Profit: Subtract the expenses associated with the new services or procedures (materials, lab fees, staff time) from the increased revenue to arrive at the annual profit.
4. Calculate ROI: (Annual Profit / Total Investment) x 100 = ROI %

Example:

A dentist spends \$5,000 on an implant course, \$1,000 on travel, and loses \$2,000 in revenue from being out of the office. The total investment is \$8,000. After the course, the dentist places 10 implants per year, generating \$4,000 revenue per implant. Expenses for materials are \$1,000 per implant.

• Increased Revenue: 10 implants x \$4,000 = \$40,000
• Materials Cost: 10 implants x \$1,000 = \$10,000
• Annual Profit: \$40,000 – \$10,000 = \$30,000
• ROI: (\$30,000 / \$8,000) x 100 = 375%

Intangible Benefits:

It is important to note that the ROI of CE is not solely measured in financial terms. Intangible benefits can include:

• Improved Patient Care: Enhanced skills and knowledge can lead to better patient outcomes and satisfaction, strengthening the dentist-patient relationship.
• Increased Confidence: Mastering new procedures can boost a dentist’s confidence and job satisfaction.
• Professional Development: CE helps dentists stay current with the latest advancements in dentistry, maintaining their professional competence.
• Networking Opportunities: CE courses provide opportunities to connect with other dentists and specialists, fostering collaboration and referrals.
• Personal Satisfaction: Many dentists find fulfillment in learning new skills and expanding their knowledge base, leading to increased job satisfaction and a more rewarding career.
• Attracting and Retaining Patients: Being able to offer newer, more in-demand services gives the dentist a competitive advantage, attracting new patients and giving current patients reasons to stay with the practice.
• Recruiting and Retaining Staff: Staff appreciate working with a dentist who is actively staying current with the latest technology.