Hey there, dental rockstars! Let’s talk about How to Increase Dental Practice Revenue. More specifically, let’s talk about how to rake in more dough while making your patients happier, healthier, and fiercely loyal to your practice. It’s time to level up, ditch some bad habits (PPOs, looking at you), and create a practice that thrives without breaking a sweat.
In this high-energy, action-packed article, we’re diving deep into benchmarks, strategies, and a case study that’ll blow your socks off. Buckle up, it’s about to get wild—and wildly profitable.
Benchmarks: How to Increase Dental Practice Revenue
Before we start tinkering under the hood of your revenue engine, let’s take a quick look at the numbers you should be aiming for.
- Average Revenue Per Patient (ARPP): The benchmark here is around $650–$750/year. If you’re not hitting this, don’t panic. We’ll fix it.
- Case Acceptance Rate: PPO patients typically accept treatment at a meager 30%, while membership patients jump to 40% or higher.
- New Patient Count: 20–30 new patients per month per provider is a sweet spot.
- Profit Margins: Aim for 30–40% after expenses. If you’re seeing less, we need to talk strategy.
Now that you know the benchmarks, let’s break them down and figure out how to crush them.
Step 1: Increase Average Revenue Per Patient (ARPP)
Your ARPP is the golden goose. The higher it goes, the more profitable your practice becomes.
Negotiate PPO Contracts
If you’re swimming in PPO write-offs, it’s time to grab a life preserver—and that preserver is Ben Tuinei from Veritas Dental Resources. This guy is a ninja at renegotiating PPO contracts to reduce write-offs and boost ARPP. Seriously, check out our podcast episode, Navigating Dental Insurance, for the juicy details.
Say Goodbye to PPOs
Want to skip the red tape altogether? Start cutting ties with PPOs and replace them with membership patients. Membership patients spend 4.3X more than PPO patients, averaging $2,150 per year compared to the $500 PPO patients bring in. It’s not just about the money—it’s about less hassle and happier patients.
Step 2: Start a Patient Membership Plan
Let’s talk about the MVP of revenue-boosting strategies: the patient membership plan.
Here’s why membership plans are a game-changer:
- More Revenue: Membership patients spend way more because they’re already invested in your practice.
- Recurring Revenue: Monthly payments keep your cash flow stable and predictable.
- Increased Case Acceptance: Patients in a membership program are 33% more likely to accept treatment plans.
The BoomCloud™ Effect
If you want to scale your membership program like a pro, you need BoomCloud™. This platform makes it ridiculously easy to create, manage, and scale your membership program. Automate billing, track patient metrics, and watch your revenue soar without breaking a sweat.
Step 3: Attract the Right New Patients
It’s not just about filling your schedule with new patients—it’s about attracting the right patients.
Know Your ICP
Your Ideal Customer Profile (ICP) isn’t just anyone with teeth. You want patients who are:
- Uninsured and looking for affordable care.
- Willing to pay out-of-pocket for high-quality treatment.
- Loyal and ready to say “yes” to treatment plans.
Digital Marketing That Works
Invest in SEO, PPC, and social media ads that target your ICP. Highlight your membership plan as a key differentiator, and watch the leads roll in.
Case Study: Scaling to 2,200 Active Membership Patients
Let’s talk about a real-world practice that went all-in with BoomCloud™ and reaped the rewards.
- Starting Point: 150 membership patients paying $30/month.
- The Plan: Invest in marketing to attract more membership patients, renegotiate PPO contracts, and optimize case acceptance.
- The Result:
- Active Members: 2,200 patients paying $45/month.
- MRR (Monthly Recurring Revenue): $99,000/month.
- ARR (Annual Recurring Revenue): $1,188,000/year.
- Patient Spend: Membership patients spent an average of $2,400/year on additional treatments.
This practice didn’t just hit the benchmarks—they obliterated them.
Step 4: Optimize Your Operations
Once you’re bringing in more patients and revenue, it’s time to streamline operations to maximize profitability.
Enhance Patient Experience
Delighted patients leave glowing reviews and refer their friends. Focus on:
- Comfortable office vibes.
- Transparent pricing.
- Quick, efficient service.
Automate Where You Can
Use tools like BoomCloud™ to automate billing, patient outreach, and membership tracking. The less manual work, the better.
Step 5: Expand Your Services
To boost revenue, you don’t need to reinvent the wheel. Just add a few high-demand services:
- Teeth Whitening: A cosmetic crowd-pleaser.
- Invisalign: Straight teeth, straight profits.
- Sleep Apnea Treatments: Lucrative and life-changing for patients.
The Takeaway
If you want to know how to increase dental practice revenue, it’s all about working smarter, not harder. Ditch those PPOs, start a membership plan, attract your ideal patients, and invest in the right tools to manage it all.
With a killer strategy and tools like BoomCloud™, you’re not just hitting the benchmarks—you’re setting them for everyone else.
Ready to make it happen? Let’s go crush those goals!
