Wrong investments in technology can cost your dental practice dearly in time, money, and debt. The damage is usually irreversible, as equipment cannot be resold easily. If you do manage to resell, it will be at a fraction of the original purchase price. Buying new equipment is similar to buying a new car, which depreciates 25% in value the minute you drive it off the dealership parking lot.

Sadly, we find dental offices wasting enormous amount of money in this area. Dentists either pay too much for equipment or buy instruments that subsequently gather dust in the office.

Purchase decisions are made impulsively, because another doctor down the street invested in it, or because other doctors recommended it on a blog. Dentists believe that a new technology will excite patients and bring in droves of new patients, only to be disappointed by the response. Or, they purchase the machine and find that the return on investment is not quite as high as stated by the manufacturer. The learning curve for using new equipment also tends to be steep and rarely as simple as presented by the manufacturer.

Questions to Ask Before Any Technology Purchase

The following 12 questions are helpful in making a sound decision:

1. Is this piece of equipment suitable for your office and your skill set?

2. What is the learning curve? How much time is required to become proficient at using this particular instrument? Are you certain your office will use this instrument extensively?

3. What if you don't purchase this instrument? Will the office lose patients or lose opportunities? Will the office appear outdated? What are the ramifications?

4. Will this generate increased production for the office? Are you simply replacing income from one set of procedures with income from another set of procedures?

5. Are the time savings claimed by the manufacturer real? Will that time be used to do another procedure? Does your scheduling system allow for additional patients to be seen? Do you have adequate patient flow to realize the benefits?

6. What is the true and full cost of owning this piece of equipment, including all repair and maintenance costs?

7. What is your estimate for Return-On-Investment (ROI) for this instrument? Be conservative. (Manufacturers always overstate the ROI figures with a slew of optimistic assumptions.)

8. Can you truly afford the new piece of equipment? Are you in position to pay outright for the equipment? Leasing or financing equipment should be a last resort, as the interest rate only increases your debt and your total cost.

9. What is the payback period for this investment? How many months or years before you recoup the full cost of the equipment? Are you close to retirement?

10. Is the manufacturer going to be in business for the next 10 years? If they go out of business, will you still be able to use this instrument/machine?

11. What is the level of support provided by the manufacturer?

12. Do you really need to purchase this new, or can you purchase it used? Will the used machine be supported by a warranty? What is the potential cost saving - used versus old?

Upgrade and invest in technologies, but carefully evaluate your options before you take the leap. With sound technology decisions, you are on your way to a more profitable practice.