Fee for Service vs Capitation: The Million-Dollar Truth Dentists Can’t Afford to Ignore

June 21, 2025
Topics: Dental
Written by: Lisa Rasmussen

How Smart Practice Owners Are Ditching PPOs and Adding $500K+ in Recurring Revenue

Join our exclusive course and discover the proven strategies that practices use to add $10,000+ in monthly recurring revenue with patient membership plans. Dr. Evans took this course and now has over 800 members and $37,000/mo of predictable recurring revenue. Watch this webinar before we take it down in 24 hours.

This course normally sells for $297.

But right now, I’m giving you access for just $47.

That’s cheaper than a hygiene cleaning.

And it could be the most profitable $47 you ever spend.

Get the Course Here → The Six-Figure Membership Plan Course

What You Will Learn:

- How to Build a Membership Plan That Pays You Monthly (Even While You Sleep!)

- Why PPOs Are Stealing Your Revenue—And How to Take Control of Your Profits

- The 3-Step System to Scale Recurring Revenue
(Even If You’ve Never Sold a Membership Plan Before!)

- The #1 Mistake Dentists Make When Dropping PPOs (And How to Avoid It!)

LIVE Case Study: How One Dentist Went from PPO-Dependent to $500K+/Year in Recurring Revenue With a Membership Program!

In dentistry today, PPOs are not your friend, they hurt your cash flow, demolish your profit margins, jeopardize your patient relationships & use A.I. to deny claims!!

If I had an employee or partner that messed up my business like that, I would FIRE them ASAP! 

$47. No fluff. Just results.

You in?

“You’re Not Running a Charity, You’re Running a Business!”

If you’re still clinging to fee for service vs capitation debates like it’s 1995, we need to talk. No fluff. No filters.

Because here’s the thing…

Dental insurance companies have built entire empires on the capitation model, while leaving providers stuck with low reimbursements, red tape, and burnout. Meanwhile, fee-for-service looks like a “freedom pass”… until patients flinch at every crown quote.

So what’s the real move? What’s the secret sauce that modern practices are using to grow faster, scale smarter, and treat more patients without selling their soul to insurance contracts?

Say it with me: MEMBERSHIP.

That’s right. With a BoomCloud™-powered membership program, dentists are tapping into subscription-based, loyalty-building, revenue-boosting magic that insurance can’t touch. And spoiler alert: it’s crushing both fee for service and capitation in all the best ways.


Story: Meet the Practice That Told Insurance to Kick Rocks

Dr. Carla Vega was stuck in the middle of the fee for service vs capitation tug-of-war. Her overhead was rising. Patients kept ghosting after seeing their bills. Capitation contracts looked appealing—predictable income, less billing hassle—but when she ran the numbers?

She was getting paid less than $35/patient per month and still carrying full liability.

Then one day, while rage-Googling “how to dump Delta Dental,” she found BoomCloud™.

Fast-forward 12 months:

  • She built a $29/month membership plan with 800+ members

  • Monthly Recurring Revenue (MRR): $23,200

  • Annual Recurring Revenue (ARR): $278,400

  • Patients started spending 2.7x more than her non-members

  • Loyalty went through the roof (96% retention )

Capitation? Fee-for-service? Bye, Felicia.


Fee for Service vs Capitation: The Ultimate Dental Cage Match

Let’s break it down…

Model Fee-for-Service Capitation
Revenue High per treatment, but inconsistent Predictable, but low per patient
Paperwork Tons Less, but still audits galore
Control Full Zero—you’re at the mercy of insurers
Loyalty Depends on price sensitivity Usually low—patients don’t “value” care
Burnout Level Moderate to high EXTREME (low pay + liability = )

And now…

Model Membership Plans (BoomCloud™)
Revenue Predictable, growing monthly cash flow
MRR & ARR Buildable and scalable
Control YOU design the plan, set the fees
Value Perception High—patients commit, then use more care
Growth Direct-to-patient, no middleman required

Membership Isn’t Just a Payment Model. It’s a GROWTH ENGINE.

Let’s connect the dots.

BoomCloud™ allows you to design your own dental subscription—no insurers, no rules, no capitation math. Just value, loyalty, and a cash flow you can scale.

Why does this beat fee for service vs capitation?

Because it takes the best of both models (revenue from FFS + predictability of cap) and removes the worst (insurance drama, low reimbursement, price resistance).

Plus, here’s what data from BoomCloud™ users shows:

Membership patients spend 2x to 4x more annually.
Case acceptance jumps by 70%+ once patients commit to a plan.
Churn drops below 8% when plans are well-designed.
MRR grows an average of 11% MoM for active marketing practices.


Ditch the Debate and Download the Playbook That Works

Tired of living in fee-for-service purgatory? Ready to flip the capitation script?

BoomCloud™ has you covered.

Download the Million-Dollar Membership Plan eBook
https://boomcloud.myclickfunnels.com/million-dollar-book

Take The Six-Figure Patient Membership Course
https://www.boomcloudapp.com/six-figure-membership-course

Schedule a BoomCloud™ Demo
https://boomcloudapps.com/demo-schedule/

Create Your Free BoomCloud™ Account
https://www.boomcloudapp.com/main-online-demo-and-sign-up-page


Cool AF Features of BoomCloud™ That Make It a No-Brainer

Real-Time Revenue Tracking (watch your MRR grow!)
HIPAA-Compliant Billing System
Custom Plans for Every Type of Patient (Perio? Cosmetic? Pediatric? Yes.)
Fully Mobile Signup, Auto Renewals
Built-in Marketing Tools to Attract New Members
Automated Failed Payment Recovery


BoomCloud™ Case Study: “We Doubled Our Profit Margin”

Practice: 5-operatory dental clinic in Salt Lake City
Goal: Replace insurance revenue with membership MRR
Result:

  • 450 members in 10 months

  • $16,500 in MRR

  • 2.3x increase in hygiene visits

  • 43% increase in whitening & Invisalign treatments

“The craziest part? We actually enjoy billing now. No more insurance calls.” – Dr. Brent L.


FAQs

Is a membership plan legal in my state?
Yes! BoomCloud™ complies with state laws and helps you stay fully compliant.

Can I use it alongside fee-for-service?
100%. Most practices use it to replace or supplement insurance AND FFS.

How much can I realistically earn?
BoomCloud™ practices report earning between $10k–$50k in MRR depending on size and marketing.

What’s the average cost per member?
Anywhere from $20–$45/month is common—tailor it to your local market!

What if a patient cancels?
BoomCloud™’s dunning system helps recover payments and reduce churn.

Do patients love it?
They LOVE it—because it’s simple, affordable, and gives them VIP access to care.


Conclusion: Fee for Service vs Capitation is Old News… and the Future is Membership

We’re living in a subscription economy. From Netflix to Dollar Shave Club to Peloton—patients are primed for monthly plans. Why should dentistry be different?

You could keep wrestling with fee-for-service vs capitation until burnout bites…
Or you could build your very own dental membership empire with BoomCloud™.

Here’s the truth:
The fastest, most scalable way to grow a dental practice today is by maximizing revenue per patient through predictable, loyal, membership-driven relationships.

So, doc… what are you waiting for?


Inbound Link Suggestions

  • Link to your own pricing/membership comparison page

  • Your practice blog: “Why We Offer a Dental Membership Plan”

  • FAQ page about treatment fees or insurance alternatives

Outbound Link Suggestions

My Top Podcasts

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Get the book that’s helping over 65,000  practices ditch insurance, boost cash flow, and create financial freedom with a patient membership program.

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vision-membership-plan-ebook Creating a patient membership plan is the smartest strategy to implement in your practice. You will increase patient satisfaction & loyalty, Increase predictable recurring revenue & increase sales!

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Say goodbye to PPOs and hello to a thriving, independent dental practice. Don’t miss out – your journey to financial freedom starts here!

Subscribe to Our Podcasts!

Jordon Comstock

Author Bio

Jordon Comstock is the Founder & CEO of BoomCloud™, a software that allows practice, clinic & spa owners to build, manage and scale a membership program. This helps practice & clinic owners to create recurring revenue & improve loyalty via membership programs. Jordon is passionate about Music, Hawaii, Healthcare businesses like: dentistry, optometry, med spas and massage spas. Schedule a demo of BoomCloud™ and learn how membership programs can improve your business. Here are more dental books to improve your practice

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