Exposing Hidden Fees: Dr. Allmand on Fixing Merchant Processing for Dentists

In a candid conversation on the Tooth and Coin podcast, Dr. Zak Allmand shares his journey from dental school to becoming a successful businessman and dentist. He dives deep into the nuances of dental practice ownership and the innovative approaches he adopted to navigate financial and operational challenges, particularly focusing on credit card processing fees and efficient practice management.

Introduction to Dr. Allmand’s Journey

Dr. Allmand began his journey in the field of dentistry by enrolling in dental school in 2001, coinciding with the events of September 11. Post-graduation, he joined the Air Force, which provided him the opportunity to practice dentistry under unique and challenging circumstances, such as performing root canals in tents in Afghanistan. This experience laid the groundwork for his resilient and innovative mindset.

Overcoming Challenges in Practice Ownership

After leaving the Air Force, Dr. Allmand and his wife moved to Indiana to start a family and purchase a dental practice. In partnership with a friend, they acquired a well-established fee-for-service practice. However, they were confronted with the high overhead costs typical of a traditional practice model. Dr. Allmand and his partner took a strategic approach to lower these costs and increase profitability, transforming their practice into a thriving $2.8 million business with an overhead of just 36 to 39 percent.

Innovative Approaches to Reducing Overhead

One of the key components of reducing overhead in Dr. Allmand’s practice was the adoption of in-office milling and same-day dentistry. These technologies not only helped cut down lab fees and other associated costs but also increased patient satisfaction and referrals due to the convenience they offered.

Dr. Allmand also emphasizes the importance of bringing in technology like the iTero scanner to increase workflow efficiency and reduce errors in processes like Invisalign impressions, which can otherwise contribute to overhead if not managed correctly.

Navigating Practice Management with a Partner

Dr. Allmand attributes much of his success in operating a dental practice with a partner to clear communication and equal distribution of profit sharing. The non-hierarchical structure he maintains, with both partners operating equally and diversifying their skills, proves to enhance both practice functionality and staff cohesion.

Exploring Payment Solutions with Apex

Transitioning his expertise in financial management to payment solutions, Dr. Allmand founded Apex Payment Solutions. The company now services over 4,000 dental offices nationwide, aiming to deliver transparency and better options for managing the often murky waters of credit card processing fees. His mission is to empower colleagues with knowledge, regardless of whether they choose Apex’s services, establishing trust within the industry.

Insights on Long-term Business Strategy

When asked about the components of sustained success, Dr. Allmand advises continuously reevaluating and negotiating costs - be it for supplies, staffing, or rental costs - and ensuring flexibility to adapt to operational needs without long-term binding contracts. This strategic vigilance has kept his practice adaptable and resilient in the constantly evolving field of dentistry.

The conversation with Dr. Zak Allmand is a compelling look into the complexities of running a dental practice and a payment solution company simultaneously. His story is one of adapting to change, implementing innovative solutions, and prioritizing transparency and trust in business operations. His approach offers invaluable insights for dental professionals aiming to improve their financial and operational strategies in today’s challenging economy.

Don't forget to tune in next week for the second part of this series.

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Reach Out to Dr. Zak Allmand

1. Learn more about Apex Payment Solution's Services: apexpaymentsolutions.com
2. Email Zak:  zak@apexpaymentsolutions.com
3. Schedule a time with Apex: Contact Form

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