Reducing Dependence on Dental Insurance
Think of a world within your dental practice where you don’t have to rely on insurance, including PPOs. Becoming totally self-reliant.
What does that world look like to you? How different is it from the world you’re currently in?
Spoiler alert—this CAN really happen!
Dropping PPOs may sound intimidating, but it is possible for dental practices to go solo without PPOs and still be successful.
A lot of us believe when we’re starting a dental practice that there needs to be a “third party” to assist in building it. How does this really make sense? Third parties will never care as much about your practice as you do. Insurance companies can greatly control the foundation of a practice and its cash flow. Any members of your team, dentists, consultants, and vendors in the dental industry can see this.
Not all insurance is bad, but I strongly believe that the dental industry needs to become less reliant on insurance companies to build their patient bases. When you pull the plug on a third party, and it’s up to you and your staff to grow your practice, things will start to change.
Quality will be better valued, and you’ll actually look at your marketing strategies to learn what works and what doesn’t. You’ll understand how to work your “machine” from the inside out.
Tips to Drop PPOs
Bill Rossi from Advanced Practices spends his time educating dentists on how to drop PPOs the correct way. Many dentists think they can just “turn off” the PPO “light switch” and all will be good. Some practices have done this and survived, but it’s a very risky move.
Here are some strategies for working through the process of dropping PPOs correctly.
You Have More Power Than You Think
You are not helpless, and you do not have to sign up for every PPO that exists.
Patients do not come to you based solely on the PPO you’re signed with. You have the power to build relationships and influence people, and this freedom will give you a better chance toward becoming self-reliant.
Finding a Balance
Mr. Rossi mentions finding the right balance of PPO participation.
When a dentist has complete control over their fees, it’s essential to have balance so that they are not too high or low. This is where I believe in-house membership programs can be helpful to a practice that is looking to become more fee-for-service oriented.
Trimming Back on PPOs
It can be dangerous to cut all PPOs all at once. Instead, consider trimming back a little at a time and market your new membership program to your internal and potential patient base.
After you’ve done this successfully, proceed with cutting more PPOs as you feel comfortable and established with your in-house membership.
Building a Membership Program to Become Self-Reliant
An in-house membership program can be one of your best tools to reduce your dependence on PPOs and to build self-reliance. When you offer a membership program, your patients pay the practice a set monthly or yearly fee to access certain benefits and discounts that you offer.
When you have a base of patients enrolled in your membership program, they become more loyal and easier to manage through dental membership software, instead of dealing with insurance companies rejecting and delaying claims.
Another benefit of creating a membership program is having predictable recurring revenue.
According to John Warrilow in the book “Automatic Customer,” this tactic will allow your practice to become valued at a higher price point due to being more predictable. When you have a steady and predictable cash flow, it makes your practices more enjoyable to manage.
Renegotiating PPO Fees
Renegotiating your existing PPO fees is another great tip.
Ben Tuinei of Veritas Dental Resources says, “A practice can gain back hundreds of thousands of dollars a year if it just takes the time to negotiate the PPO fees.”
Negotiating fees is an art, but it is a strategy practices must consider to help them become more self-reliant. If you follow these simple tips, your office will naturally become more profitable and easier to manage.
Check out our e-book for more tips on a dental membership plan and how it can work for your practice. Visit BoomCloud if you have any questions related to quitting PPOs and becoming self-reliant.
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