Transitioning or starting a fee-for-service dental practice is a bold move, but it can lead to greater financial freedom, improved patient care, and a healthier bottom line. Ditching insurance networks means more control over your pricing and fewer constraints on treatment options.
But how do you make the shift? This guide will walk you through the steps to establish a thriving fee-for-service practice, with a focus on creating predictable revenue using BoomCloud™ membership plans.
What Is a Fee-for-Service Dental Practice?
A fee-for-service dental practice operates without reliance on insurance networks. Patients pay directly for services, often out-of-pocket or through an in-house membership plan. This model prioritizes personalized care and fosters stronger patient-practice relationships.
Steps to Start a Fee-for-Service Dental Practice
1. Analyze Your Patient Base
Understand your current patient demographics and how they’ll respond to a fee-for-service model.
Key Considerations:
- Are many of your patients uninsured?
- Do they value personalized, high-quality care?
- Are they dissatisfied with PPO limitations?
Pro Tip: Launch an Ideal Customer Profile (ICP) campaign to identify the best-fit patients for your new model.
2. Create a Patient Membership Program
A membership program is the cornerstone of a successful fee-for-service practice. It provides predictable revenue and makes care affordable for uninsured patients.
How BoomCloud™ Helps:
- Automated Billing: Handles monthly or annual payments seamlessly.
- Customizable Plans: Tailor plans for families, individuals, or retirees.
- Analytics Dashboard: Track recurring revenue (MRR), active members, and more.
Case Study:
Wood River Dental grew their membership program to over 700 active patients using BoomCloud™, generating $300,000/year in predictable revenue. Membership patients also spent 4x more than PPO patients.
3. Communicate the Benefits to Patients
Transitioning to fee-for-service can create uncertainty for existing patients. Communication is key.
What to Tell Patients:
- Freedom of Choice: They can choose treatments without insurance limitations.
- Membership Plans: Affordable options are available for preventive and routine care.
- Transparent Pricing: Costs are clear, with no surprise insurance denials.
Tip: Use mailers, email campaigns, and in-office materials to educate patients.
4. Set Competitive Pricing
Fee-for-service doesn’t mean exorbitant prices—it means fair pricing for high-quality care.
Pricing Strategy Tips:
- Research local competition to set market-aligned fees.
- Offer tiered pricing for different membership levels.
- Highlight value, such as advanced technology or longer appointments.
5. Market Your New Model
Key Marketing Tactics:
- SEO Optimization: Use keywords like “no insurance dentist near me.”
- Social Media Ads: Highlight membership plans and transparent pricing.
- Community Outreach: Partner with local businesses to promote your practice.
6. Train Your Team
Your team plays a crucial role in the success of a fee-for-service model.
Training Focus Areas:
- How to explain membership plans effectively.
- Strategies for communicating the value of personalized care.
- Techniques for addressing patient concerns about insurance.
Why a Membership Plan is Essential for Success
Membership plans provide a safety net for patients who may be hesitant to leave the comfort of insurance.
Benefits of Membership Plans:
- Predictable Revenue: Monthly payments ensure financial stability.
- Loyal Patients: Membership creates a sense of belonging and commitment.
- Higher Patient Spend: Members are more likely to invest in treatments.
FAQs
How do I transition my practice to fee-for-service?
Start by analyzing your patient base, creating a membership program, and communicating the benefits to your patients. Tools like BoomCloud™ simplify the process.
Is a fee-for-service model riskier than PPOs?
While it may seem risky initially, fee-for-service practices gain greater control over pricing, reduce insurance hassles, and often attract more loyal patients.
How does BoomCloud™ help with the transition?
BoomCloud™ offers automated tools to manage membership programs, track analytics, and ensure seamless billing, making the transition smoother.
Final Thoughts: Build a Fee-for-Service Practice with Confidence
Starting a fee-for-service dental practice allows you to break free from PPO limitations and focus on delivering high-quality, personalized care. By implementing a robust membership program with BoomCloud™, you can attract loyal patients, ensure predictable revenue, and set your practice up for long-term success.
Ready to Take the Leap?
Schedule a free demo with BoomCloud™ today to learn how to launch a patient membership program and thrive in a fee-for-service model.
