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Fred Heppner, business management advisor,
speaker and author, has been serving the dental industry since 1983.
He has enhanced dental and medical offices across the country
in the areas of patient retention, staff productivity, scheduling efficiencies,
hygiene production, case presentation skills, facility utilization,
marketing efficiencies, and payment. Along with
Dr. Larry Emmott (http://www.drlarry
emmott.com), and Bill Elliott, Fred recently presented a
special continuing education course, sponsored by the
Arizona Dental Association.
“Plan 2000,” a proactive business plan for dentists,
was developed by Fred for
this course. Heppner resides
in Scottsdale, AZ, with his
wife Susan, and daughters
Mary and Gena. His business management firm, Proactive Practice Management,
specializes in professional, objective practice guidance
for dental professionals nationwide. Contact Fred by phone (602) 404-3910,
fax
(602) 404-0886, or e-mail fredhepp@sprynet.com.
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It is no surprise that the world is abuzz about the
“Y2K” potential problem. Everywhere we turn, another article
has been published or another story is aired about how the “millennium
bug” may cause havoc around the world. With the help of the media,
we have become painfully aware that most computer code was written to
save space, and the date field in many programs omitted the century
portion. For example, the year “1999” was coded as “99.”
Consequently, when January 1, 2000 arrives, many computers, if not updated
or replaced, will roll over to Year “00,” which may be treated
as year 1900.
And it is not just computers that may have problems.
Many devices and systems in non-computer applications have embedded
computer chips that may be affected. These chips are now found in electronic
equipment such as TV’s, VCR’s, telephones, thermostats, power
plants, medical devices etc., around the world. Some experts say that
of the 26 billion embedded chips in use today, .5 - 5% of these chips
will not handle the year 2000 date change.
So, what’s going to happen two minutes after the
59th minute of the 23rd hour, on December 31, 1999? No, not universal
Armageddon! But a reasonable question for you to ask is, “Will
the computers and embedded chips in my dental office handle 2000 as
a date field?”
According to Senator Robert Bennett, R-Utah, who chairs
a senate committee on Y2K, the healthcare industry is ill prepared.
60,000 dentists do not know that a potential problem exists! Senator
Bennett says to expect “a bump in the road, but it will not be
crippling and it will not last for an undue period of time.”
Truth is, no one really knows for sure. Anyone could be affected for
an undue period of time, and therefore proper risk management must be
orchestrated. How can dentists prepare their businesses to minimize
the potential risk of an event of unknown proportions?
The following is Plan 2000, a program I developed for
dentists interested in a practical approach to risk management against
the potential problems “the millennium bug” may cause. It
includes a chronological plan for the office and letters that can be
sent to insurance companies and vendors.
Plan 2000
April - May 1999: Planning & Assessment
• Office meeting: present plan to staff.
Be a source of reliable, non-hysterical information.
• Review each person’s role; discuss possible contingencies.
• Inventory all hardware and applications. Assess business risk
of all “mission critical” systems.
• Run diagnostic on all computer systems - test each “box”
in the office.
June 1999: Infrastructure
• Fix office computers. One-step solution: http://www.dentalsolutions.com.
• Inventory & test anything that relies on a date to run: lights,
thermostats, radiography equipment, facsimile, telephones, security
systems, DME-defribulators, EKGs, IV Pumps, intra-oral camera, electronic
dental equipment, video monitors, copier, printer, HVAC systems.
• Create & keep records!
• Start 7-month full system back-up (separate tapes). Archive:
keep in a safe place away from office.
• Building tenants & structure: sprinkler systems, elevators, climate
control. Test security system; contact company & inform them of a test,
roll the date forward, set off the alarm and then try to turn it off.
July - Sept 1999: Outside Interfaces
• Suppliers, investment firms, malpractice & disability insurance,
pharmacies.
• Mail questionnaire to vendors; call critical vendors and schedule
face-to-face meeting. Emphasize readiness of their suppliers as well.
Electronic links to banks, e-claim vendors, payroll processors, labs,
dental product suppliers, parcel delivery services, referring dentists.
• Insurance companies: send letter to 20% of carriers who provide
80% of your revenue.
• Who else? Local police and fire, ambulance service, ER, accountant,
lawyer, financial advisor, business management advisor.
• Respond to inquiries
December 27 - 31, 1999
• Print management reports; print account balances—detailed
ledgers.
• Final tape back-up: store all in safe place away from the office!
Plan 2000 Recap
• Stock two months of dental supplies.
• Confirm that your lab has supplies; buy gold (dental) for your
use.
• Perform maintenance on equipment 4Q99.
• Make hard copies of all records.
• 7-Month back-ups: save & archive
• Convert 4Q patient payments to cash—about one - two months
worth of expenses.
Personal Year-end
• Print bank records, investment records, retirement accounts,
loans
• Run your own credit report
The Day—January 1st, 2000!
Saturday morning: visit the office, turn on computers, equipment.
Contingency Plans
• Local State Division of Emergency & Military Affairs: http://www.state.xx.us
(xx = your state abreviation).
• Find ways to operate the business in worst case scenarios.
• American Red Cross: six basics - http://www.redcross.org/disaster/safety/y2k.html
• Water: 2 quarts + 1 gallon per person per day; 3 day supply.
• Food: 3 day supply; non-perishable.
• First Aid supplies: 1 for home; 1 for each car.
• Clothing & bedding: 2-3 day supply.
• Tools: flashlight/batteries, radio, fire extinguisher, wrench.
Letters
I recommend you use the following letters to contact insurance companies
and vendors. Edit them to suit your particular style, and print on your
stationery.
Insurance Company Letter:
Dear ABC Insurance,
We are writing to inquire about your state of readiness
to deal with the impending year date change on January 1, 2000. As part
of our own preparations, we need to know if your company and information
technology will be Y2K compliant by that date. Specifically, we must
formulate our strategy in the event that you, as one of our payors,
are unable to process insurance claims and pay them in a timely manner.
Please respond to the following in an unambiguous manner:
Will ABC Insurance be able to process and pay all
claims sent to you after January 1, 2000 with the same speed and accuracy
and in the same manner as prior to that date?
We look forward to your timely response to this question,
and appreciate your candor in this matter.
Sincerely,
Dr. Prepared
Vendor Letter:
Dear ABC Vendor,
I am writing you to determine to what extent your business
will be Year 2000 compliant. It is our hope that all businesses will
continue “as usual” during the first days of the new millennium.
However, because of the potential for some disruption, it is important
for us to assess which businesses will be able to carry on “as
usual” and which will run into some problems. Please check the
appropriate box below and return as soon as possible:
(i ) We are currently 100%
Year 2000 Compliant
(i ) We expect to
be 100% Year 2000 Compliant by December 31, 1999
(i ) We will not be 100% Year 2000 Compliant
by December 31,1999
Thank you for your prompt response.
Sincerely,
Dr. Prepared
In closing, be practical. A majority of the problems caused by this
event may last at the most two or three days. If you execute this plan,
you’ll have prepared your business in a sensible way and exercised
good risk management. Ironically, the insurance we have to protect our
home from natural hazards and ourselves from physical disability are
with companies that will falter if they aren’t “Y2K”
ready. Don’t wait. Start today and prepare your dental practice
for the year 2000.
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