Be prepared for the return of UDA targets
Featured Products Promotional FeaturesPosted by: Dental Design 7th August 2021
The COVID-19 pandemic has created a seismic shift in the dental landscape, not least for those dentists with NHS contracts to fulfil. With practices forced to close between April and June 2020, and adopt new restrictions once open, UDA targets were made impossible. In light of this, NHS England introduced a system by which practices have been able to deliver reduced activity levels for the remainder of the contract year, and thereby avoid financial penalties.
Change in targets
From 1 January 2021, dental practices were asked to deliver 45% of their contracts. The threshold then increased to 60% from 1 April, which is set to last until 1 October 2021 when it is expected pre-COVID targets will return.
It is also important to note that NHS England introduced slightly different targets for orthodontic practices, which increased to 80% of their total contract targets from 1 April 2021.
The cliff-edge drops in funding remain at 36% for dentistry and 56% for orthodontics.
Calculating your UDA activity
The example below[i] from the NHS Business Authorities document illustrates how UDA activity is calculated if the provider achieves 60% or above between 1 April and 30 September 2021 (deemed to be equivalent to 100% for 2021/22) and has met all associated conditions.
A 16.75% adjustment to reflect variable costs not incurred due to the reduced patient care activity will be applied in place of the usual clawback.
Example:
‘Practice A’ is a non-UDC with a contract to deliver 13,000 UDAs annually at £25/UDA. From April they are carrying out on average 62% of usual contractual activity, reducing their monthly UDA delivery target from 1,083 to 650.
If met, this will equate to 2,473 of undelivered UDAs that, when multiplied by the 16.75% adjustment to reflect variable costs not incurred, gives a total of 414 UDAs. Multiplying the 414 UDAs by £25 gives £10,335.60, that will be applied at year-end reconciliation.
If you need extra clarity on the financial side of your NHS contract, queries can be directed to your Local Area Teams (LATs).
Two months to get back on track
Come October, you’ll want your practice to be fighting fit to meet your pre-COVID targets. Here are some things to consider ahead of time to help you get prepared.
Establish standard surgery hours
Throughout the pandemic, you are likely to have adjusted your practice opening hours to comply with increased fallow times and staff availability. By October, you will need to commit to remaining open through normal contracted surgery hours. This might require returning your staff rota to its pre-COVID state as you bring team members back from furlough and all staff resume their standard hours.
Bulking up the clinical staff
In addition to reducing hours, you may have chosen not to recruit associates or reduced dental therapy provision while UDA targets were lower. Now is the time to review your UDA target and make sure you have the full clinical provision to meet it. Associates will often need to give three months’ notice at their current locations and dental therapists may have to rearrange days elsewhere to fit into the proposed surgery time. Recruiting now will ensure you are able to hit the ground running when the full targets need to be met.
Incentivise staff
The transition to a new normal, including a more regular working pattern, will likely extend the stress felt by the team over the past 18 months. Perhaps look at rewarding your team in the short to medium term with incentives such as a cash bonus or free lunch. Offer perks, alongside ensuring they have the right tools for the job, to help keep the team motivated. Be aware that pay rises will negatively affect valuation so considering alternatives can often be the best option.
Review processes and procedures
The advent of COVID-19 introduced a raft of guidance and SOPs targeted at ensuring the safety of patients and practitioners alike. With an expected increase in the number of patients and frequency of treatments it is important to review practice procedures to ensure they remain fit for purpose.
Patient flow and practice layout should be reassessed considering the increased number of patients and staff. Think about maintaining single entry and exit points for patients, and 2-metre distancing where possible, ideally marked on floors. For staff, ensure regular COVID testing, and consider establishing a process for reviewing staff health and wellbeing.
Get set to meet the challenge ahead
By planning ahead, principals can ensure their businesses are in a strong position to take on the challenge of returning to pre-COVID UDA targets. Rest assured that additional support is always available from Dental Elite, who can provide expert advice and guidance with regard to navigating the transition of introducing more patients and staff into your dental practice, along with recruitment services Give the professional team a call to find out how they can help you today.
For more information contact Dental Elite. Visit www.dentalelite.co.uk, email info@dentalelite.co.uk or call 01788 545 900
Author: Luke Moore is one of the Founders and Directors of Dental Elite and has overseen well in excess of 750 practice sales and valuations. With over 11 years working in the dental industry, Luke has extensive knowledge in both dental practice transfers and recruitment and understands the complexities of NHS and private practices.
[i] NHS Business Services Authority. Guidance to support dental contract management arrangements for April 2021 to 30 September 2021. Available at https://www.nhsbsa.nhs.uk/sites/default/files/2021-03/2122%20CM%20guidance%20FINAL%20v1.1.pdf [Last accessed 26.5.2021].
