When dental patients don’t know if their insurance covers certain treatments, or are forced to wait until the following year to pay for a treatment when their benefits reset, it can make life very frustrating for dentists and their practices as a whole.
Barriers like these should present dental practices with an opportunity to reconsider how their patients access care, and pay for it, and offering in-house membership programs with the help of dental office bookkeeping, is one possible solution.
How do in-house membership programs work?
The model is actually a very straightforward one, and involves patients paying monthly or annual fees directly to your practice, for specific, preventive services and treatments at discounted rates. This direct agreement cuts out the middle man and eliminates any need for submitting claims, and delays in reimbursements.
While program structures vary from practice to practice, members are typically charged between $300 and $400 on an annual basis.
What do patients gain?
There are many obstacles patients with traditional insurance encounter when seeking dental treatment, including waiting periods, annual maximums that never seem to increase, and requirements for pre-authorization, not to mention continual uncertainty over what’s covered, and what isn’t.
With a membership plan, preventive care is included in their membership, and no extra payments are necessary each visit. Because the fee for treatment is set by the practice, patients know what they’ll be expected to pay, with no unpleasant surprises and no network status confusion.
What do practice’s gain?
Pricing for preventive treatments is set based upon the costs of your practice, instead of what is dictated by third parties, and the recurring revenue created by the membership program, is entirely independent of the rate of reimbursement from insurers.
What most dental practices find when they implement the membership program, is that the rate of acceptance for treatments vastly improves. Because patients find upfront costs more easier to comprehend, they’re more likely to go ahead with a treatment that has been recommended.
They also find that there are gains from an administrative perspective, with less time being spent by teams checking benefits, submitting claims and managing pre-authorizations among other things; freeing up their time for patient care.
In terms of the bigger picture, this model also puts practices ahead of their competitors, by offering patients an effective alternative to traditional insurance.
Some limitations to be aware of
It’s worth remembering that routine and predictable care is best suited to an in-house membership program; patients needing speciality or extensive treatment, might find that the discounts offered aren’t sufficient enough.
Also, because in-house membership programs are specific to each individual practice, those patients who relocate to another state or area, lose their membership benefits.
Legal considerations
Before implementing an in-house membership program at your practice, it’s very important that you check the regulations for your state, as these may have strict rules pertaining to direct patient contracts.
What makes a successful membership program?
What the base membership program includes, must be made clear to patients, and you’ll need to give thought to whether you opt for monthly or annual payments: monthly are more complicated but do create a consistent flow of cash, while payments made annually offer immediate capital, but may not be ideal for patients who prefer to make smaller payments.
Cancelation policies must be clear and unambiguous, as must discount structures, and you may want to consider offering a family membership option.
How to implement the program
Firstly, all team members must be fully trained on every detail of the program and how it is to be presented to patients.
Marketing must be targeted, and your patient base should be reviewed regularly to check for anyone with a minimal plan, or no insurance coverage at all.
It’s also important that your practice implements efficient ways of processing payments, applying discounts and tracking memberships using technology, as well as monitoring performance.
Professional bookkeeping for dentists can help practices measure the success of in-house membership programs through number-tracking and analysis. While these programs aren’t a one-size-fits-all solution for every dental practice, they can significantly reduce insurance dependency when implemented thoughtfully.