NHS contracts 'critical' to long-term survival

The secret of success for dental practice owners is investing in people and standing out from the crowd, according to Dr Ashkan Pitchforth of South Cliff Dental Group.

Pitchforth took to the stage alongside Neil Carmichael, executive chair of the Association of Dental Groups, at yesterday’s Dentist Times Owners Club event in St Albans to talk about his unique business approach.

And he told delegates that as well as building strong businesses, embracing NHS patients would be key to longevity in the sector.

In a hard-hitting, and at times controversial, discussion, Pitchforth described dentists as ‘arrogant’, adding: “Dentists think they are business wonders, and dentists and Gods. But we have to realise we may just be dentists and if we want to run a business we have to engage the people that can do that for us. We have to have CEOs and CFOs and we need to invest in the right people, not just systems.

“Day to day all I do is connect the dots and it gels. Good leaders do that. We need to be more creative. Like Steve Jobs at Apple. He didn’t invent the smartphone and he didn’t invent the stylus, but he replaced the stylus with a finger and blew Blackberry out of the water.

“I built my business from the top down. Three years ago I didn’t have the organisational structure I do now, but I put in place a finance team and their ethos filters down to the next level, to practice managers and so on. I try to engage the people who sit in my team and get them to engage those below them, so good practice filters down.

Dentists think they are business wonders, and dentists and Gods. But we have to realise we may just be dentists and if we want to run a business we have to engage the people that can do that for us 

“Mastery and autonomy in a team is also really important. My team come up with ideas and I encourage them to think outside the box.”

A charismatic and self-proclaimed ‘flamboyant’ leader, Pitchforth

added: “How I am is how I go into practices. You have got to be energetic, not look like you’ve just been slapped. You have got to have that inspiration which draws the team in, rather than moping around. If you do not have that approach, do not work for me.”

South Cliff Dental Group launched in 2015 with just one practice. It grew to 24 practices, but following mergers the group now stands at 20.

“I do things very differently and that’s what makes us stand out from the market – not many groups have 30% growth level EBITDA,” he said.

“For me it’s not about playing a numbers game in terms of practices, but we have a revenue of £27m and £9m EBITDA. We want to get to £10m EBITDA and once we have that solid foundation we might look to expand.”

We should always fly the flag for the NHS because, at the moment it is the best place to be. The ICBs are utterly clueless and we have exploited that by winning contracts and increasing our UDA rates left, right and centre

And the group’s staunch focus on NHS contracts is another key selling point, and the reason for much of its success.

“We make NHS dentistry work,” he said. “It is our bread and butter and we are proud of it.

“We should always fly the flag for the NHS because, at the moment it is the best place to be. The ICBs are utterly clueless and we have exploited that by winning contracts and increasing our UDA rates left, right and centre.

“I would never be a fully-private practice. The NHS draws patients in. We spend zero on marketing because the NHS does that. We then upsell the private services.

“Moving forward this approach is vital as I think the NHS will continue as it is and if you are just riding the cosmetic fashion storm work is going to dry up.

“Our approach is delivering family dentistry and there will always bbe a demand for that.”

But the group’s success has, at times, meant tough decisions.

“Three years ago we had a £4m clawback from the NHS so we got rid of the evil in the organisation. Out of our 24 practices we sacked all the clinicians except for 10. We got rid of all the locums and those on low UDA rates. And, from there we built up our dental therapists, then we drew in the dentists and became more selective rather than acting desperate. We put ourselves on a pedestal and people wanted to work for us.

“As a result we have overcome the recruitment issue most practices have.”

The next Dentist Times Owners Club event will be held at The Belfry in Sutton Coldfield on 17 September.

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