In the rapidly evolving world of dental practice management, dentists are increasingly dissatisfied with Preferred Provider Organization (PPO) plans. This dissatisfaction is exacerbated by high inflation and rising operational costs. Gary Takacs from the Thriving Dentist Show stopped by the BoomCloud Headquarters and delves into this issue, providing a comprehensive guide on how dentists can successfully drop PPO plans and regain control over their financial health.
The primary concern in the current economic landscape is the financial strain placed on dentists by PPO plans. These plans set the fees that dentists can charge, which often fail to keep pace with the rising costs of supplies, wages, and other expenses. As a result, dentists face reduced compensation, making it challenging to maintain a profitable practice.
Main Problem
Dentists are experiencing a double hit: increasing costs and decreasing income from PPO plans. This scenario is unsustainable, prompting many within the dental community to consider dropping PPO plans altogether. By doing so, dentists can take back control over their practice’s financial health and improve their overall satisfaction.
Six Steps to Drop PPO Plans
Gary Takacs outlines six critical steps for dentists looking to transition away from PPO plans. These steps provide a clear roadmap for making this significant change effectively and sustainably.
- Know Your Data
The first step in dropping PPO plans is understanding the data related to these plans. Dentists need to:
– Identify the number of PPO plans they are on.
– Determine the number of active patients on each plan.
– Understand the resignation notice requirements for each PPO plan.
By having a clear picture of these factors, dentists can make informed decisions and develop a strategic plan for transitioning away from PPO plans.
- Develop a Comprehensive Digital Marketing Plan
Once dentists decide to drop PPO plans, they need to replace the lost patient flow with effective digital marketing strategies. A comprehensive digital marketing plan should include:
– Search engine optimization (SEO) to improve the practice’s online visibility.
– Social media marketing to engage with current and potential patients.
– Online advertising to attract new patients.
– Content marketing, such as blogs and videos, to establish the practice as a trusted authority in the dental field.
By leveraging these digital marketing strategies, dentists can attract new patients and maintain a steady flow of new business.
- Create an In-Office Membership Plan
To cater to patients without insurance, dentists should consider creating an in-office membership plan. This plan can offer:
– Discounts on services.
– Preventive care packages.
– Flexible payment options.
An in-office membership plan not only attracts uninsured patients but also helps retain them by providing value and affordability.
- Get Your Team 100% Supportive
A successful transition away from PPO plans requires the full support of the entire dental team. Dentists should:
– Train their team on the new approach and its benefits.
– Ensure everyone understands their role in the transition.
– Foster a positive and supportive environment.
When the dental team is fully on board, the transition is smoother, and patients receive consistent and positive messages about the changes.
- Elevate the Relationship-Driven Aspect of Your Practice
Building strong, relationship-driven patient care is crucial for retaining patients during the transition away from PPO plans. Dentists should focus on:
– Providing personalized care.
– Developing strong patient-dentist relationships.
– Enhancing the patient experience through exceptional service.
Patients who feel valued and cared for are more likely to stay with the practice, even if their insurance coverage changes.
- Add Services Not Covered by Insurance
Finally, dentists should consider adding high-value services that are typically not covered by insurance, such as:
– Dental implants.
– Adult orthodontics.
– Cosmetic dentistry.
Offering these services can attract patients who are willing to pay out-of-pocket for specialized treatments, thus increasing practice revenue.
Additional Insights
Gary Takacs provides practical advice and a step-by-step blueprint for dentists looking to drop PPO plans. He emphasizes the importance of planning, team support, and strategic marketing in making this transition successful. Gary shares success stories from practices that have successfully transitioned away from PPO plans, highlighting the financial and professional benefits. These stories serve as inspiration for dentists who are considering making similar changes. Dentists are encouraged to take control of their practices by reducing their dependence on insurance. This can lead to greater personal, professional, and financial satisfaction. The video concludes with a call to action for dentists to join the Reducing Insurance Dependence Academy (RIDA) for additional support and resources during this transition.
A Call to Action
If you are a dentist looking to regain control over your practice’s financial health and reduce your dependence on PPO plans, consider joining the Reducing Insurance Dependence Academy (RIDA). With the support and resources provided by RIDA, you can make a successful transition and achieve greater satisfaction in your professional and personal life.
By following the six steps outlined by Gary Takacs, you can strategically drop PPO plans and build a more financially stable and patient-focused practice. Start your journey today and take the first step towards a more rewarding dental practice.
Understanding Recurring Revenue
Recurring revenue refers to the portion of a company’s revenue that is expected to continue in the future. This type of revenue is predictable, stable, and can significantly enhance a business’s financial health. For dental practices, membership plans offer an excellent opportunity to create a reliable stream of recurring revenue.
Case Study: Membership Plan Success
Let’s consider a dental practice that has successfully implemented a membership plan. This practice boasts 1,207 active members, each paying $40 per month. The membership plan includes:
– Regular dental check-ups.
– Discounts on treatments and procedures.
– Preventive care packages.
Calculating Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) is a key metric that measures the predictable revenue a business expects to earn every month from its subscription-based services. For this dental practice, the MRR can be calculated as follows:
MRR = 1,207 *$40/mo
Total MRR = $48,280/mo
This practice earns $48,280 every month through its membership plan.
Calculating Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) is another important metric that projects the revenue expected from subscriptions over a year. It can be calculated by multiplying the MRR by 12:
ARR $48,280 * 12 months
ARR} = $579,360/yr
Therefore, the annual recurring revenue for this practice from its membership plan is $579,360.
Benefits of Recurring Revenue from Membership Plans
Financial Stability and Predictability
Recurring revenue provides a steady and predictable income stream, which is crucial for budgeting and financial planning. With a consistent flow of revenue, dental practices can manage their cash flow more effectively, invest in new technologies, and improve patient care services.
Enhanced Patient Loyalty
Membership plans encourage patients to stay with the practice long-term. By offering regular check-ups and discounts on treatments, patients feel valued and are more likely to remain loyal to the practice. This loyalty translates into a stable patient base and reduced patient attrition.
Improved Patient Health Outcomes
Patients enrolled in membership plans are more likely to seek regular preventive care, leading to better health outcomes. Regular check-ups and preventive care can catch dental issues early, reducing the need for more extensive and expensive treatments later on.
Competitive Advantage
Implementing a membership plan can set a dental practice apart from competitors. Offering a membership plan shows a commitment to patient care and affordability, attracting new patients who are looking for cost-effective and comprehensive dental care solutions.
Practical Considerations for Implementing Membership Plans
Structuring the Plan
When designing a membership plan, it’s important to include services that offer real value to patients. Common inclusions are regular check-ups, cleanings, X-rays, and discounts on additional services. Practices should ensure that the plan is priced competitively while covering costs and generating profit.
Marketing the Plan
Effective marketing is essential to attract patients to the membership plan. This can be achieved through various channels such as social media, the practice’s website, email campaigns, and in-office promotions. Highlighting the benefits and cost savings of the plan can persuade patients to enroll.
Managing the Plan
Implementing a membership plan requires efficient management to ensure smooth operation. This includes tracking memberships, processing payments, and providing excellent customer service. Many practices use specialized software to manage these aspects effectively.
Free Resources:
Here are some resources to help you practice better understand how to set up, launch and scale a patient membership plan.
- Ebook: How to Create a Membership Program
- Ebook: The Million Dollar Membership Plan
- Webinar:
- BoomCloud Demo: www.boomcloudapps.com
Conclusion
The case study of the dental practice with 1,207 active members paying $40 per month illustrates the significant financial benefits of membership plans. With an MRR of $48,280 and an ARR of $579,360, this practice enjoys a stable and predictable revenue stream. Beyond the financial advantages, membership plans foster patient loyalty, improve health outcomes, and provide a competitive edge.
For dental practices looking to enhance their financial stability and patient satisfaction, implementing a membership plan is a strategic move. By understanding the principles of recurring revenue and effectively managing a membership plan, practices can achieve sustainable growth and success.
In summary, Gary Takacs provides a detailed roadmap for dentists to drop PPO plans successfully. By understanding their data, developing a comprehensive digital marketing plan, creating an in-office membership plan, getting their team’s full support, elevating relationship-driven care, and adding high-value services, dentists can navigate this transition effectively. This approach not only enhances financial stability but also fosters a more satisfying and patient-centered practice environment.
What to do NextIf you are a dental practice owner looking to implement a membership plan, consider the steps outlined in this article. Analyze your patient base, design a value-driven plan, and market it effectively. With a well-structured membership plan, you can enjoy the benefits of recurring revenue and build a loyal, satisfied patient base. Start your journey today and transform your practice’s financial health and patient care experience. BoomCloud is a software platform that helps practice set up, launch and scale a patient membership plan for your practice. Book a demo with the BoomCloud Platform to see if it is a fit for your practice!
