Insights · Medical & Dental

Before you spend year-end profit on a new chair, read this

Q4 is when practices make equipment decisions. The technology that keeps the schedule running rarely makes the list — until the year it fails during patient hours.

By Andrew · NextGen Strategy PartnersOctober 5, 20265 min read

Every fall, independent practices run the same exercise: look at the year's numbers, talk to the accountant, and decide what to buy before December 31. New operatory equipment. A scanner. Maybe the chair that's been on the wish list for two years. It's a good habit, and technology almost never makes the list.

That's understandable — a new scanner produces revenue and a server does not. But the equipment decision and the technology decision aren't separate. The scanner runs on a workstation. The workstation talks to the practice management system. All of it depends on a network and a backup nobody thinks about until the morning they stop working, with a full schedule in the waiting room.

The four things worth a year-end look

The real question isn't what the equipment costs. It's what a full day of cancelled appointments costs — and that number is usually larger than anything on the wish list.

Run the math your accountant will recognize

Work out your practice's revenue for a single day. That's your downtime cost, per day, before counting rescheduling, staff hours, and the patients who don't come back. Compare it to the cost of replacing the two oldest workstations. For most practices in our area the comparison ends the debate — one unplanned day offline costs more than the hardware would have.

The tax angle, briefly

Technology purchases generally qualify for the same year-end treatment as other equipment, and your accountant can tell you how Section 179 or bonus depreciation applies to your situation. That's a conversation worth having before December, not after. We're not tax advisors — but we've watched practices spend the full allowance on clinical equipment and discover in February that the computer running it was the constraint all along.

The practical takeaway

Before you finalize the year-end list, ask your IT provider for two things in writing: the age of every workstation and network device, and the date of your last verified backup restore. Our free practice IT assessment produces both — and the findings are yours whether or not we ever work together.

Buy the chair if the chair is what the practice needs. Just make sure the systems the whole schedule depends on aren't the thing you defer for one more year — because the year they fail, they choose the timing, not you.

Andrew, founder of NextGen Strategy Partners

Andrew — Founder, NextGen Strategy Partners

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