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Our emphasis
is to help our affiliated practitioners improve practice performance. Since
the 1980s, we have demonstrated again and again the ability to do so. We
do it allfrom office design and development to managing employee benefits
and patient insurance. We provide all of these services as part of affiliating
with us.
In the Right Places
OCA has a real estate department that assists affiliated practitioners who
want a new office. We help them find space, obtain a lease or build-out
an office, investing the capital required to get it done. We handle all
aspects of office design, remodeling and construction. We also analyze markets
to find the most attractive demographics, assist with site selection and
obtain construction bids. In short, we can handle the entire project from
start to finish.
Sophisticated Business Systems
We put the business systems in place, train the practitioners in how to
use them, help staff the office and assist affiliated practices with marketing
programs to help increase business, including television advertising and
cross-referral programs. On average, during 2001 we spent approximately
$75,250 on advertising per affiliated orthodontist who advertised their
practice to the public, as compared to an estimated $4,819 in average spending
for a traditional practice in 2000.
Our services include managing employee benefits, payroll, patient insurance,
billing, collections and telecommunication systems. We work with our affiliated
centers to provide staffing, recruiting and training. We provide integrated
accounting, financial reporting, purchasing and accounts payable systems
to improve efficiency in office management. Our sophisticated information
systems not only facilitate more efficient patient scheduling but allow
practitioners to track their progress electronically and in real time.
Purchasing Power
We are the largest single purchaser of orthodontic supplies in the world,
and we get preferred vendor pricing. Through our centralized purchasing
program, OCA affiliated centers can take advantage of volume discounts on
more than 40,000 products from 300 vendorsranging from dental floss
to fax machines. Its all done online via our sophisticated web-based
orthodontic supply store. We dont charge our affiliated practices
a markup or per-item charge for using the system. Every step in the system
is electronicfrom order entry at OCA affiliated centers to processing
at OCAs corporate headquarters to vendor notification, drop-ship delivery
directly from manufacturers and accounts payable processing. As a result,
OCA affiliated practices achieve measurable savingssuch as 70 to 80%
average savings on the most commonly used orthodontic supplies. This increased
purchasing power adds considerable value. On average, supply costs range
from 9 to 12% of practice revenues for a traditional orthodontic practice;
at OCA affiliated centers, supply costs average less than 6% of practice
revenues.
Quality Assurance
A commitment to quality is central to our operating philosophy. Our reputation
depends on it, and patients expect it. Our affiliated practices currently
have more than 500,000 patients in treatment. We monitor the quality of
care through a variety of quality assurance mechanisms, including doctor
peer reviews, phantom phone calls, quality assurance report cards and on-site
visit evaluations. We talk with existing and former patients to conduct
telephone interviews and surveys. Through these processes, we help OCA affiliated
practices meet the highest standards and protect the credibility and reputation
of the OCA name.
Operating Efficiencies
OCA equips affiliated practitioners with the tools they need to operate
more efficiently. OCA provides continuing education opportunities for affiliated
practitioners, and avails its affiliated practitioners of the latest technology
and materials that vendors have to offer. As an example, OCA provides affiliated
orthodontists with information about orthodontic products and techniques
that enable them to increase the interval between patient appointments without
compromising safety and reliability. In 1997, the typical interval was about
30 days. We provide the tools and platform to enable valuable productivity
gains. During 2001, patients were seen by our affiliated orthodontists about
every six weeks on average because of the new materials and techniques available
in the marketplace. The fee is the same, and patients appreciate the advantage
of fewer visits. The end result is a significant productivity gain for OCA
affiliated practices. |