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    3 reasons dental membership plans will save your practice

    As insurance takes a bigger and bigger part of your income, it's time to look for a different solution.

     

    Compared to uninsured patients, Dental Membership Plan members are a veritable gold mine. Consider that some 38 million uninsured patients visit the dentist each year. And studies show that the uninsured want dental plans and will pay for them if they’re transparent and affordable. Once on board, Dental Membership Plan patients are two to three times more likely to visit the dentist each year and generate 50-75 percent more revenue when compared to insured patients and uninsured patients not on a Membership Plan.1 The numbers don’t lie. Dental Membership Plans can have an immediate impact on the profitability of your practice.

    Related article: Why organized dentistry needs to change in order to survive

    2. Building the long-term value of a practice

    Aside from the immediate revenue and profit that Dental Membership Plans deliver every day, week and month of a practice’s operation, the long-term impact of an effective Dental Membership Plan is nothing short of astonishing. The long-term endgame of any practice should be to maximize a return on equity when a practice is sold or a dentist retires.

    In the broader business world, it’s a known fact that subscription-based businesses can enjoy a premium 2.5 times higher than non-subscription businesses when acquirers or investors come calling. The rationale is obvious. Recurring revenue businesses benefit from a base of established, previously-cultivated customers. This customer base requires no greater investment in marketing or advertising. They are already captive to the practice, an in-place asset. Their presence vastly de-risks an acquisition, allowing acquirers to pay more in return for a sure thing: those subscription patients who are already onboard and engaged.

    Consequently, subscription-based dentistry ranks as the number one way you can increase long-term value for your business. The key is to launch your Dental Membership Plan today and have the entire practice commit to building it over the long-term so when you sell or retire you have that recurring revenue already locked in — creating an attractive asset for potential acquirers.

    3. Improved operational efficiencies

    Aside from the present value of building recurring revenue and the long-term value of a subscription-based practice, the third financial benefit of a Dental Membership Plan is the operational efficiency delivered to your practice. The best Dental Membership Plans reduce the administrative burden of your staff and instead allow them to focus on the most important element of your practice — delivering quality care to your patients.

    Every survey and every focus group show that above all else, patients value the quality care they receive when choosing to stay loyal to your practice. So logically, the more your staff engages with patients, the happier your patient base and the greater loyalty they will show in staying compliant with good oral health protocols — a profitable business plan, indeed!

    Related article: 4 ways to make your office more green — and more profitable

    But if their time is consumed chasing claims, handling denials, keeping the schedule full, conducting patient follow-ups and juggling a myriad of other administrative details that keep them away from interfacing with patients, your staff can’t deliver that degree of care.

    Dave Monahan
    Dave Monahan, CEO of Kleer, has a passion for creating technology-enabled businesses that improve people’s lives. Monahan’s advocation ...

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