PPOs. Just saying it feels like stepping on a Lego barefoot. They promise to bring in patients but at the expense of your sanity, profit margins, and ability to grow. The good news? You don’t have to be a hostage to PPOs forever. There’s a better, more profitable way to run your dental practice, and it starts with learning how to cut our PPOs like a boss.
Let’s break it down: why PPOs are the most expensive patients to maintain, how to replace them with more profitable alternatives, and what tools—like BoomCloud™—can make the process painless. Oh, and don’t miss the case study about a practice that kicked PPOs to the curb and scaled their membership plan to 933 active members. Spoiler alert: they’re thriving.
PPO Write-Offs: The Silent Killer of Your Profit Margin
Let’s get one thing straight: PPO write-offs are not a discount; they’re a black hole eating your profits. Think of them as an indefinite marketing expense.
- Every PPO patient comes with a price tag: You’re “writing off” a big chunk of your revenue just to have the honor of seeing them.
- Costs never stop: Unlike a one-time ad, this “marketing expense” sticks around as long as the patient does.
Insurance admin costs pile on top of the write-offs, turning PPO patients into the most expensive kind of patient you can have.
Cutting PPOs = More Revenue Per Patient = More Profit
Here’s the math:
- Drop PPOs.
- Stop bleeding revenue through write-offs.
- See the same number of patients—or fewer—and make more money.
It’s the fastest way to improve your revenue per patient and increase profitability without adding more hours to your week or burning out your team.
Replace PPOs with a Marketing Function That Works
Cutting PPOs is only half the battle. To truly succeed, you need to replace that pipeline with a steady flow of patients who actually value your care (and pay you what you’re worth).
- Invest in Digital Marketing: Use SEO, PPC, and social media ads to attract patients.
- Track Your Patient Acquisition Costs: Know what you’re spending to bring in new patients and make sure it’s less than what PPOs are costing you.
Launch a Patient Membership Plan: Your Secret Weapon
Once you cut PPOs, you need a strategy to retain and convert patients, especially the uninsured ones. Enter patient membership plans, the Netflix of dentistry:
- Recurring Revenue: With a membership plan, you get predictable income every month.
- No Insurance Hassle: Patients love the simplicity of a membership plan, and you love not dealing with claim denials.
- Patient Loyalty: Members stick around longer and spend more than PPO patients.
Case Study: A Practice That Scaled to 933 Membership Patients
One savvy dental practice used BoomCloud™ to scale their membership plan after cutting out PPOs. Here’s how they did it:
- Starting Point: They launched their plan with just 80 members.
- Scaling Up: With smart marketing and patient conversion strategies, they hit 933 active members paying $45 per month.
- MRR (Monthly Recurring Revenue): $41,985
- ARR (Annual Recurring Revenue): $503,820
The Ripple Effect
- Increased Patient Spend: Membership patients spent 3-5X more on services like whitening and implants.
- Better Reviews and Referrals: Happy members left glowing reviews, bringing in more patients organically.
Enhance Your Patient Experience for Referrals and Reviews
Want patients to rave about your practice? Focus on the experience:
- Make It Personal: Greet patients by name and make them feel like VIPs.
- Use Tech: Tools like BoomCloud™ help streamline billing and communication, making life easier for everyone.
- Ask for Reviews: Don’t be shy about asking happy patients to leave a review—it’s free marketing gold.
How BoomCloud™ Helps Practices Cut PPOs and Thrive
BoomCloud™ isn’t just software; it’s the Swiss Army knife for dental practices. Here’s why:
- Membership Management: Automates billing, tracking, and renewals for your plan.
- Patient Conversion Tools: Makes it easy to sign up uninsured patients and convert PPO patients to members.
- Actionable Metrics: Tracks MRR, ARR, and patient spend so you can see exactly how you’re growing.
Dr. Rockstar’s practice (our case study) swears by BoomCloud. After cutting PPOs, they used the platform to scale their membership plan and create recurring revenue that made the loss of insurance contracts a total non-issue.
Final Thoughts: Cut the Cord, Reclaim Your Practice
Cutting PPOs isn’t just about improving your bottom line—it’s about taking control of your practice and delivering better care to patients who value what you do. With strategies like launching a membership plan, enhancing patient experience, and leveraging tools like BoomCloud™, you can ditch the insurance middleman and thrive.
So, what are you waiting for? Start cutting those PPOs today, and get ready to build a more profitable, stress-free practice that you actually love running.
