HOUSEHOLD ECONOMICS A BUSINESS MODEL FOR MODERN DENTAL PRACTICES
Paul Samuelson, the first American to receive the 1970 Nobel Prize in Economics, defined Economics as: “The study of how people and society end up choosing, with or without the use of money, to employ scarce productive resources that could have alternative uses to produce various commodities over time and distributing them for consumption, now or in the future, among various persons or groups in society. It analyses the costs and benefits of improving patterns of resource allocation.”
Macroeconomics is concerned with the regional, national or international economy, while Microeconomics is concerned with the economy of the household or the smaller units that make up a society, such as healthcare economics.
Applying Samuelson definition to healthcare, a dental practice is a Household consist of a Estate that holds a variety of efficient Physical resources ( physical facilities, dental units, equipment, supplies) that are operated by a Group of qualified individuals ( clinicians, dental hygienists, Front and back office staff ) whose interests are interrelated and goals are aimed to produce Services or products ( dental services of prevention, dental treatments in different specialties) needed by society in general ( Community, Society and patients) or the relevant professionals ( General practitioners, dental specialists, hygienists, assistants, technicians ).
The Quality of these resources of Estate, physical, Individuals, and services, is the decisive factor in the success or failure of dental practice.
Prof Abou-Rass has developed a listing of positive and negative Key performance indicators to be used as guidelines used for dental practice establishing, organizing, operating, and assessing. Here are examples of the negative key performance indicators