Many practice owners are conditioned to think that they need insurance companies to thrive financially. Or they simply remain in-network with insurance companies because it’s what they’ve always done, and change like dropping PPOs may sound drastic. But we are here to tell you that it may be time to drop your PPOs and remain successful without losing patients.
- Understand that insurance companies only care about their business
First and foremost, insurance companies are in the business of making money. They don’t care about providers. And they certainly don’t care about patients’ best interests. These truths are evident in their low allowable amounts and limited coverage. Unfortunately, many patients let their insurance dictate their treatment. This may be a tough pill to swallow, pun intended, but the sooner you come to this realization, the better. Then, you can start getting your patients to see the truth too.
- Focus on relationships, not dollars
It’s normal to think of dropping PPOs as a quick way to lose money. And that may be true for some practices that focus more on dollars than relationships. But the truth is, if you’ve built strong relationships with patients, they will return to you, with or without their insurance. Of course, there will be a select few that have to make their decision based solely on money, and that is ok. But we have seen time and time again that practices retain most of their patients after dropping PPOs.
- Offer a payment plan
Before you cut loose from insurance companies, consider implementing a payment or membership plan or both. Membership plans provide basic preventive care and discounts on restorative or cosmetic treatments. There are many types available, and it only costs your patients a small monthly payment to be guaranteed these benefits. In some cases, patients find a membership plan to be more financially reasonable than their insurance.
Additionally, consider offering a third-party financing option that allows patients with good credit to charge their treatments and make low monthly payments, sometimes qualifying as interest-free. CareCredit and Lending Club are the most popular financing companies and are trusted by many dentists nationwide.
The fact is that accepting insurance actually causes your practice to lose money. If you’re tired of getting fed up with low fees and seeing your patients deal with the headache of a sub par insurance plan, we urge you to consider dropping PPOs. You can take it in small steps and begin by dropping a select few that few patients use and that pays the least. If you’d like to find out more about this transition or to ask any questions, please contact Bryant Consultants at (877) 768-4799.
