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Creating an Innovative Business Model for the Performance of Commercial Dental Clinics

Evgeniy V. Kostyrin, Grigoriy G. Bagdasaryan

Abstract


Providing dental care to the population is associated with the active introduction of new technologies, personnel management methods, and business processes. In this sense, dentistry is at the forefront of the development of medicine and other economic sectors. However, the active practical implementation of advanced technologies for the provision of dental services requires personnel to have increased motivation and highly qualified labor, to develop new protocols for patient management, and to use more advanced equipment and materials, while administrative and management personnel should introduce progressive methods of labor motivation and economic and mathematical models of material and moral stimulation. This research aims to create an innovative business model for the development of a commercial dental clinic (CDC) that provides paid dental services. Economic and mathematical modeling and nonlinear programming are aimed at maximizing dentists’ wages, together with financial incentives for the work of administrative and managerial personnel and deductions for the development of a typical commercial dental clinic in Moscow based on the actual volume of dental services and the costs of their provision. With the volume of paid dental services growing by one and a half times, the innovative business model makes it possible to increase clinic income by a factor of 1.66 and dentists’ salaries by a factor of 2.24, raise deductions for labor incentives for administrative and managerial personnel by a factor of 1.66, and increase total profit by a factor of 1.75. During the research, it was possible to ensure early repayment of a loan of 5 million rubles for clinic development in 21 months. Additional research is needed because of the possible variability of the dental market and lending conditions.

 

Doi: 10.28991/HIJ-2024-05-01-05

Full Text: PDF


Keywords


Innovative Business Model; Dentistry; Commercial Dental Industry; Economic And Mathematical Model; Labor Incentives; Wages; Dentist; Dental Services; Management Model; Innovation Model.

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DOI: 10.28991/HIJ-2024-05-01-05

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