3 minute read
How FDS revolutionised dental practice with risk management and flexibility
DR JOHN CARRIGY, Principal
Every business venture begins with a great idea, often something unique and untried, a solution that the market craves. The timing is perfect; the air is filled with energy and enthusiasm. There’s a sense of achievement in being the entrepreneur who has come up with such an insightful proposal. The belief is that success must be assured –both financial and in the reputation of the business. It is very exciting; however, this is only the beginning of the journey.
The challenge is turning one of these great ideas into something tangible while minimising risk and maintaining flexibility. The last thing you want to do is get excited about an idea that may end up bankrupting you or risking your personal relationships and family life.
At Foundation Dental Services (FDS), we took the “road less travelled.” Our fundamental guiding principle was to centralise dental practice support structures for efficiency, such as administration, stores, sterilisation, and training. In turn, this optimised mobility and flexibility in the delivery of specialist clinical services, taking minor surgical procedures, dental implants, oral medicine, and gum care to a broader support base.
Addressing Risk
So, how would risk be addressed? Setting up a dental surgery is often a million-dollar undertaking, let alone setting up multiple clinics to allow the model required for optimal mobility and flexibility. How could this be done with limited investment?
Answer: We reduced fiscal risk by finding spare capacity in businesses with an element of synergy. Plenty of general and specialist dental practices exist with empty chair time either after hours or on weekends. They were more than happy to have some of this spare capacity converted into a bonus source of income with added potential business growth. FDS, in turn, could be very generous with service agreements and staff wages that are well above market. As a result, chair time and staff engagement were only paid for when a patient was 'in the chair’.
In a similar manner, an unused room located in one of the host practices was fitted out as the site for the fledgling central administration support cell. Multiple branches with a broad geographic footprint also significantly reduced business risk.
Expansion And Ownership
FDS has now been in business for over 25 years based on this structure. Time and again, it has allowed us to navigate through the ups and downs of a turbulent market with minimal disruption to the provision of “excellence in patient care”. Pivoting easily to reposition no matter the challenge: GFC, changing referral paths and demands, or even Covid-19.
A Proven Model
So, has the model worked? Twenty-five years later, we have our own well-equipped and manned administration centre, supporting 24 of our clinics spread across five major centres—from the Fraser Coast in the north down through the Sunshine Coast and Brisbane to the south. All are owned 100 per cent by FDS.
It has involved a lot of hard work, but with risk always kept manageable, it has also been fun.
Family life hasn’t suffered—in fact, the opposite has occurred—and it has truly become a family affair, with seven of us now helping grow the concept and expand the service.
In conclusion, a brilliant idea is only the first step. Then comes the hard part—optimising success by minimising risk. Go for it!
