You know that feeling of “breaking-free” from something that’s held you captive? Compare that experience to being set free from the “clutches” of dental insurance. It could be a reality when you get clarity on the question – what is a dental membership plan?
You’re already aware that the insurance industry has a strong investment in dentistry. The more dependent you are on providers the more bound you can feel – especially where revenue cycles are concerned.
Sources quoted in this Dental Economics article reveal the essence of the challenge you and your colleagues could be facing these days.
”According to the National Association of Dental Plans (NADP), about two-thirds of the US population receives dental coverage through commercial insurance. So it’s understandable why many doctors might feel trapped or pressured into accepting it, even with all the issues. A 2017 NADP report revealed about 77% of Americans had dental benefits in 2016, but a research study by the Health Policy Institute concluded that “a significant amount of adult beneficiaries—more than one out of three—do not use any of their dental benefits within the year.”
The burden of fee negotiations, PPO relationships, and more is time consuming. Plus there’s the impact on your patient relationships as their loyalty is at risk due to routine provider network changes.
An in-house membership plan provides a freeing opportunity for your dental practice.
What is a dental membership plan?
If you frequent Costco, Sam’s Club, or routinely purchase products via Amazon Prime you’re acquainted with the concept.
In much the same way, your patients can pay a monthly or annual fee to you as their dental provider. The fee entitles them to special benefits and discounts exclusive to your dental practice.
Group of People Membership Blog
A dental membership plan enables you to:
- Focus on and deliver a high standard of patient care
- Eliminate the “middle-man” (insurance providers, etc) from your service delivery
- Avoid insurance claim delays and denials
And a core benefit of a dental membership plan can involve your revenue cycle starting with your practice’s cash flow.
- More predictable and recurring revenue
- Less waiting on payments from insurance companies
Now that you have more clarity about the basics of an in-house plan it’s a good time to consider implementing one.
How a dental membership plan could increase revenue and release you from the control of insurance providers
Less dependence on dental insurance plans
Dentistry has been under the thumb of the insurance model for years. Costs are routinely inflated, patient care is compromised, and dental practice management becomes more complicated.
Reducing or eliminating insurance dependence allows you the freedom to provide the care your patients need, an increase in service and quality of care options, and a revenue cycle boost via improved cash flow.
The insurance model is a basic “win” for the insurance companies. A dental membership plan model allows your patients and your practice to win.
Recurring revenue increases
Up and down cash flow cycles create the common “feast-or-famine” challenges associated with the business of dentistry. As you’re aware, schedule and production surges are countered by slower periods.
A dental membership plan provides:
- More income predictability
- Consistent patient fees that generate recurring revenue based on participation volume
- Practice stability and less management stress
