Diwakar Kinra, DDS MS Business Plan
Dr. Diwakar Kinra
Personal I, Diwakar Kinra, would like to start a practice specializing in endodontics and endodontic surgery. I will be graduating in June 2004. My educational training involves a Bachelors degree from Kalamazoo College and a doctorate of dental surgery from the University of Michigan. After three years in private practice, I returned to pursue my masters in endodontic from the University of Detroit-Mercy. My specialty allows me to perform surgical and non-surgical root canal procedures not handled in a general dental office.
Goal My goal is to start a practice in endodontics at the Gateway Centre in Flint, Michigan. I have chosen this location for several reasons. This location is centrally located between the Flint, Fenton and Grand Blanc communities. Easily accessible via I-75 and US-23, the office would be easy and convenient for patients from the surrounding areas to locate. Within a 25 mile radius there are over 450 general dentists and only 1 full time and 2 part time practicing endodontists. This favorable ratio allows for my own practice to accommodate the need in the area.
Area of Service The local area has seen an increase in the population over the past ten years. Grand Blanc and Fenton have seen a 15% and 27% increases respectively. Also, the average household income is $69,866 and $82,840 respectively. In 2001 there was an increase in the housing market by 52% from the previous year in Genesee County.
Description of Office Starting as of August 2004, I will be leasing an 1800 sq. ft. space in the Gateway Centre. The several buildings in this complex house general, medical and dental facilities. This will be the home of Gateway Endodontics for a minimum of 7 years. Within my practice I will provide non-surgical and surgical root canal treatment for referred patients not handled in a general dental office. I have included a fee schedule for the procedures performed in the office. These fees are averages taken from the Michigan Dental Association fee schedule for the area.
Financial Support Supplemental income will be from working 1 day a week as an endodontist in a large general dental office. My wife, who is also a dentist, will be working as an associate with Stephen Jacobson, DDS where she has been employed for over 2 years. This office is located in West Bloomfield, approximately 1 mile from our residence.
Marketing The success of any endodontist office is a healthy referral pattern. Most patients that will be sent to my office will come from other dentists. Therefore, an aggressive marketing plan that is implemented prior to opening my office is crucial. Schedule D illustrates the marketing ideas and approximate cost/time associated with the plan. The first idea to be implemented will be a mail-out package to approximate 400 dentists. This package will include a single page introduction to my new office and referral forms and a business card. These letters will be sent out on a schedule based on their distance from the office, approximately 50 at a time, which will be followed up with a personal visit to the office by my staff and I. As time progresses, another follow up with the dentist will occur with a lunch/dinner meeting. Each time, trying to increase the personal attention given to the referring dentists. Exposure to the community is vital when first entering the market. This is another reason why I chose the area, since I worked in Genesee County for three years as a general dentist. At that time I was involved in the local dental society, as a trustee. This gave me a chance to interact with many other general dentists. I plan on continuing to be involved at the local level through this inlet and to continue to meet others through study clubs, social events and continuing education, which I will provide through my local supply company. These marketing goals will be implemented before I practice so I will be busy with weeks of opening the doors.
Continual Growth Even when the practice does become busy, a continued marketing plan will always be in effect so dentists realize how they are a crucial part of my business. I have included an income statement (Schedule E) for the first year of Gateway Endodontics. The statement indicates that I will need a loan from approximately $200,000 to start and maintain a successful practice. This statement also breaks down cost and has an approximation of gross production and net profit. This statement assumes on opening day there will be one chair side assistant and one frost desk/billing manager. The office will be equipped with two operatories and plumbed for two more. A majority of the initial build-out will be financed by the landlord. As time progresses, new staff and equipment will be added on as deemed necessary.
Philosophy The hours of operation will be as follows: Monday, Tuesday, and Thursday: 9 a.m. - 5 p.m. Wednesday: 9 a.m. - 1 p.m. Friday: Additional income from supplemental job. Once the practice’s referral base increases Friday will be added on from 9 a.m. – 1 p.m. and the supplemental income will be phased out.
In conclusion, Gateway Endodontics will be a state of the art facility with the latest technology in digital radiography, practice software, microscopes and high quality instrumentation to provide the patients with superb treatment. This patient satisfaction will help build up referrals from satisfied dentist and patients. I will make myself available to referring dentist as a part of their treatment team and an extension of their own practice. Our motto will be an extension of excellence.
Appendix
Schedule A
Curriculum Vitae
Schedule B
Equipment/Supplies
Schedule C
Fee Schedule
Schedule D
Marketing Plan
Schedule E
Profit/Loss Statement
Diwakar Kinra 5409 Gateway Center Ste. F Flint, MI 48507 810-235-0100 dkinra@gmail.com
Education
Masters of Science-Endodontics University of Detroit-Mercy July 2004 Doctor of Dental Surgery University of Michigan 1999 Bachelor of Science Kalamazoo College 1995 Majors: Health Sciences/Economics and Business Administration
Work
Private Practice Flint, MI (2004-Presnt) D. Kinra DDS, MS (Practice limited to Endodontics) Birch Run, MI (1999-2002) Donald Hobson, DDS (General Dentistry) Royal Oak, MI (2001-2002) Mark VanderKaay, DDS (General Dentistry) Adjunct Professor University of Detroit-Mercy Department of Endodontics Department of Peroiodontics Providing lectures to Graduate Endodontic and Periodontic residents in the area of practice management. Speaker Tulsa Dental Providing lectures to graduate and undergraduate students on practice management. Providing international lectures to General Dentist, undergraduate and graduate students on rotary instrumentation and obturation (Clean, Shape and Pack) and other areas of importance in Endodontics. Clinical Instructor University of Michigan
Lead groups of dental students to provide comprehensive and emergency dental care to children and adults, who are part of the migrant farming community in Traverse City, Michigan. Dental Externship Indian Health Services Provided emergency and comprehensive dental care for the Navajo and Hopi Indian community. Dental Externship Traverse City Migrant Program (June 1998) Provided emergency and comprehensive dental care for migrant farmers in a walk-in dental clinic. Also provided comprehensive dental care for children in a summer school setting. Owner Net Frontiers (January 1996-2006) Company that specializes in the production of home pages on the world wide web, geared towards educational institutions in the health professions. Student Intern University of Michigan (June 1997-June 1998) Responsible for preparation of Surgeries in the Graduate Periodontal Department Photography Editor Kalamazoo College Index (September 1993-June1995) Responsible for 5 staff members to incorporate all photos in a 12 page weekly newspaper. Volunteer in Veteran Hospital Veteran Administration Hospital, Ann Arbor (January-March 1993) Dental Assistant in the Dentistry department of the hospital. Actively participated in all aspects of dental care. Dental Internship University of Michigan (January-March 1993) Dental Assistant for Graduate Periodontics and Oral and Maxillofacial Surgery. Research
Research Assistant University of Michigan (April-July 1997) Clinical research on Sjogern’s Syndrome, investigating the use of an oral lozenge, and interferon alpha in patients.
Research Assistant University of Michigan (April-September 1996) Clinical research on Tempromandibular Dysfunction, discriminant analysis was used to evaluate 3-D jaw movements and EMG activity during chewing, collected in subject with/without TMD. Research Assistant University of Michigan (January-April 1994) Undergraduate thesis on the role of a cell adhesion molecule in cell differentiation, using HL-60 cells as a model cell line. Research Assistant University of Michigan (January-April 1993) Research in bone regeneration and how different cell types effect the attachment and growth of bone cells. Research Assistant Michigan State University (March-June 1992) Social sciences research focusing on infant mortality and breast cancer. Also researched the financial aspect of the medical field by interviewing executive administrators of local hospitals. Teaching
Tutor University of Michigan (January-April 1998) Instructed lecture/laboratory seminars for Gross Anatomy. Teaching Assistant Kalamazoo College (March-June 1995) Instructed seminar in Intermediate Microeconomics. Kalamazoo College (June-September 1993) Instructed Organic Chemistry IIA laboratory. Kalamazoo College (September-December 1992) Instructed seminar in Principles of Microeconomics.
Publication
Gerstner GE, Kinra D. Chewing Differences in Temporomandibular Disorder versus Control Subjects. Journal of Neuroscience Methods December 1999
Professional/ Public Services American Dental Association Michigan Dental Association Committee Leader (New Dentist Society-Genesee Society) Board of Directors Genesee District Dental Society Delegate- Michigan Dental Association (Genesee County)
Academy of General Dentistry Senior Award Michigan Dental Association committee on the Young Professional American Student Dental Association (class representative) Participant, National Issues Forum: Remedies for Racial Inequality University of Michigan School of Dentistry orientation facilitator Cultural Diversity facilitator Jonathon Taft Society Student admissions committee/ Curriculum committee Mouthguard clinic Dean’s List 8 semesters Awarded Kalamazoo College Honors Scholarship Coordinator of Kalamazoo Valley Habitat for Humanity (Kalamazoo College)
Schedule B
Equipment/Supplies Office Supplies
$5000
Nitrous Oxide system
$5000
Dental Equipment Operatory chair (2) Cabinetry Dentist/Asst. chair (2) Lighting (2) Instruments X-Ray Handpieces (3) Electric Motor (2) System B/ Obtura Vaccum System Compressor Sterilization Software & Hardware w/ digital x-ray Microscope MTC Carts
$13000 $25000 $2500 $5000 $2000 $7000 $1500 $2000 $2000 $3000 $3000 $18000 $25000 $10000 $10000
Misc.
$5000 Total
$144,000
Schedule C
Fee Schedule Procedure
Charge (2004)
2009
Limited Exam (consultation) Radiographic Film Therapeutic Pulpotomy Gross Pulpal Debridement
$75 $20 $120 $195
$ $ $ $
Root Canal Therapy Anterior Bicuspid Posterior
$595 $695 $825
$795 $895 $910
Root Canal Therapy Retreatment Anterior Bicuspid Posterior
$795 $895 $975
Apical Surgery Anterior Bicuspid Posterior
$850 $950 $1050
Retrograde Filling (per root)
$150
Schedule D
Marketing Goal Business Cards Referral Forms Directory Listing
$100 $200 $300
Mail out Package Introduction Letter Business Cards Referral Form
$500
Door to Door Introductions* Business Cards Referral Form * Set up time to return to bring lunch for office Lunch/Dinner Meetings
$2500
Exposure to Community Local school/college lecturer Local dental society speaker Other Marketing Tools Gift Baskets Pens Mugs
Total
$1400
$5000
Schedule E Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
25 750
30 750
35 750
40 750
45 750
50 750
55 750
60 750
65 750
70 750
75 750
80 750
630
Total Revenue
18750
22500
26250
30000
33750
37500
41250
45000
48750
52500
56250
60000
472500
Expenses Rent Electricity Telephone Loan(200k@7%/7yrs) Dental Supplies Heat/Water Employee Wages Malpractice Ins Liability Ins Workmans Comp. Health Ins Subscriptions Dues/Fees Accountant Legal Fees Automobile Marketing Software Support Leasehold Impvts Office Supplies C.E. Total Expenses
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 1000 100 100 500 25 17794
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 1000 100 100 500 25 17794
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 1000 100 100 500 25 17794
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 1000 100 100 500 25 17794
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 1000 100 100 500 25 17794
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 1000 100 100 500 25 17794
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 500 100 100 500 25 17294
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 500 100 100 500 25 17294
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 500 100 100 500 25 17294
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 500 100 100 500 25 17294
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 500 100 100 500 25 17294
3600 125 625 3018.5 2000 100 5000 150 150 25 500 25 150 100 100 400 500 100 100 500 25 17294
43200 1500 7500 36222 24000 1200 60000 1800 1800 300 6000 300 1800 1200 1200 4800 9000 1200 1200 6000 300 210522
Revenue Number of Pts Avg Income per Pt
Net Income
261978
Profit Expenses Collection Rate
55.4% 44.6% 97%
20.5% 0.7% 3.6% 17.2% 11.4% 0.6% 28.5% 0.7% 0.9% 0.1% 2.9% 0.1% 0.9% 0.6% 0.6% 2.3% 4.3% 0.6% 0.6% 2.9% 0.1% 100.0%