Statistics as a tool in practice management

As managers, dentists must be concerned with the daily control of their practices. Traditional management reports and graphs are not capable of indicating when specific action or intervention has become necessary. They fail to recognize that all processes--including the administrative functions of a dental office--exhibit variability. Only a control technique that can differentiate unacceptable from tolerable variation will offer any help with day-to-day managing. A simple application of statistics and probabilities is required to provide a workable solution. With results from an actual dental office, this article describes the steps for creating and using a statistical "control chart" to monitor a key practice variable--production revenue per hour.