Dropping a PPO might feel like a leap of faith, but it can be the best decision you ever make for your dental practice. PPOs come with low reimbursements, piles of paperwork, and limitations on patient care. By cutting the cord and implementing a membership program, you can take control of your revenue, reduce reliance on insurance, and create a better experience for both your patients and your team.
Here’s everything you need to know about how to drop a PPO, launch a membership program, and attract new patients who value quality care.
Why Drop a PPO?
1. Low Reimbursements
PPOs dictate your fees, often covering only a fraction of your costs. This forces practices to rely on high patient volume to stay profitable.
2. Administrative Burden
Insurance verification, claims submissions, and follow-ups eat into your team’s time and resources.
3. Patient Care Limitations
PPOs restrict treatment options, limiting your ability to provide the best care.
Step 1: Analyze Your PPO Contracts
Before dropping a PPO, assess the financial and operational impact of the decision.
Key Metrics to Consider:
- Reimbursement rates vs. production costs.
- Patient volume tied to the PPO.
- Administrative costs associated with the plan.
Step 2: Launch a Membership Program with BoomCloud™
A membership program is the ultimate solution for practices looking to replace PPO revenue while offering better value to patients.
What is a Membership Program?
A patient membership program is a subscription-based model where patients pay a monthly or annual fee for access to preventive care and discounts on other treatments.
Why Use BoomCloud™?
BoomCloud™ simplifies membership management by automating billing, tracking analytics, and promoting your plan to patients.
Key Benefits of BoomCloud™:
- Predictable monthly income through MRR (Monthly Recurring Revenue).
- Easy plan customization for families, individuals, or seniors.
- Real-time analytics to track program success.
Example Membership Plan:
- $30/month or $300/year.
- Includes 2 cleanings, 1 exam, and 15% off treatments.
Step 3: Communicate the Transition to Patients
When dropping a PPO, clear communication is essential. Patients need to understand why you’re making the change and how it benefits them.
Crafting Your Message:
- Empathy: Acknowledge their concerns.
- Transparency: Explain the limitations of PPOs.
- Solution-Oriented: Highlight your membership plan as a superior alternative.
Example Letter to Patients:
“We’re excited to announce a new way to simplify your dental care. By transitioning away from [PPO Name], we can now offer a direct membership program that provides you with better savings, more personalized care, and no insurance hassles.”
Step 4: Market Your Membership Program
To attract new patients and retain current ones, your marketing strategy must highlight the benefits of your membership plan.
Key Marketing Channels:
1. Email Campaigns
Send personalized emails showcasing the value of your membership plan.
2. Social Media Marketing
Promote membership perks on platforms like Instagram and Facebook.
3. Direct Mail Campaigns
Use MVP Mailhouse to target small businesses and local households.
4. Website Updates
Add a dedicated page for your membership program with sign-up links, FAQs, and testimonials.
Step 5: Focus on Patient Retention
Membership patients are 4x more likely to stay loyal to your practice than PPO patients.
Retention Strategies:
- Offer exclusive discounts for long-term members.
- Provide personalized patient experiences.
- Use tools like BoomCloud™ to send automated reminders about renewals and upcoming benefits.
Case Study: 7 to 7 Dental
The Challenge:
7 to 7 Dental wanted to reduce PPO dependence while maintaining patient volume and revenue.
The Solution:
They launched a membership program with BoomCloud™ and marketed it to uninsured patients and those leaving PPOs.
Results:
- Active Members: 2,500+
- MRR: $85,000
- ARR: $1+ million
- Patient Spend: Membership patients spent 4x more than PPO patients.
FAQs
Will dropping a PPO hurt my patient volume?
Initially, you may lose some patients, but a well-executed membership program can replace lost revenue and attract loyal patients.
How does BoomCloud™ help with membership management?
BoomCloud™ automates billing, tracks analytics, and simplifies plan renewals, making it easy to grow and manage your program.
How can I attract new patients after dropping a PPO?
Leverage email marketing, social media, direct mail, and in-office promotions to highlight the benefits of your membership plan.
Final Thoughts: Take Control of Your Practice
Dropping a PPO might seem daunting, but it’s a powerful step toward financial freedom and better patient care. By launching a membership program with BoomCloud™, you can replace lost revenue, build patient loyalty, and create predictable income.
Ready to Ditch the PPOs?
Schedule a BoomCloud™ demo today and discover how to grow a membership program that puts your practice in control.
