Reinvent Your Dental Practice with a Million Dollar Membership Plan
Many dental practice owners seek ways to boost their income and broaden their business opportunities. One effective method is establishing a dental membership program. Such a program allows patients to pay an annual or monthly fee for discounted services, access to exclusive offers, and additional benefits. This strategy can help attract new patients, retain existing ones, and lessen your reliance on dental insurance.
Membership plans typically provide patients with discounts on routine treatments like cleanings and x-rays, as well as more expensive procedures such as crowns and root canals. Members often enjoy free or discounted consultations, exams, and other services.
Comparison to Amazon Prime
Amazon Prime exemplifies a successful membership program, offering members benefits like free two-day shipping and exclusive discounts. Prime members spend four times more than nonmembers, a pattern mirrored in dentistry, where dental members spend about three times more than nonmembers.
Creating a Membership Plan
To successfully create a dental membership program, begin by conducting a thorough analysis of the local demographics. This includes examining factors such as median income and other socioeconomic indicators relevant to your area. Understanding these aspects will enable you to tailor a plan that not only meets but exceeds the needs and expectations of your patients, ensuring it is both affordable and comprehensive. This approach will help you design a program that is genuinely beneficial and attractive to your target audience.
Example of a Successful Membership Plan
One practice offers perio, preventive care, and unlimited whitening plans, using direct mail marketing and referrals to 55+ communities. They generate $84,363 per month in recurring revenue.
Types of Dental Membership Plans
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Hygiene Maintenance Plans: Offer discounted preventive care services like routine checkups, teeth cleanings, and x-rays. Charge between $35 to $50 per month, depending on your location.
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Unlimited Whitening Memberships: Provide unlimited whitening services for a fixed monthly fee, ranging from $15 to $40 per month.
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Emergency Care Plans: Offer discounted emergency services and cover costs for office visits and specific treatments.
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Discount-Only Membership Plans: Provide members with discounts on all dental services.
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Perio Maintenance Plans: These plans cover periodontal maintenance services like scaling, root planing, and oral hygiene instructions, charging $50 to $100 per month per patient.
After understanding your local market, design a plan that aligns with your practice's goals and pricing. Set terms and conditions, and decide on the number of treatments included, discounts offered, and any restrictions or requirements. Create a pricing structure that matches the local market and median income, ensuring easy sign-up from your practice's website.
Increasing Same Store Growth and Average Revenue per Patient
Implementing a dental membership program can also enhance same-store growth and increase average revenue per patient. Here’s how:
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Enhance Patient Experience: Improve the overall patient experience by offering personalized care plans, flexible scheduling, and superior customer service. Satisfied patients are more likely to return and refer others.
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Expand Service Offerings: Introduce new services such as cosmetic dentistry, orthodontics, or specialized treatments. By broadening the range of services, you can meet more of your patients’ needs, increasing their spend per visit.
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Loyalty Programs and Incentives: Develop loyalty programs that reward patients for repeat visits and referrals. Offer incentives such as discounts on additional services or free treatments after a certain number of visits.
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Patient Education: Educate your patients about the benefits of comprehensive dental care. Use educational materials, workshops, and consultations to inform them about available treatments and preventative care options.
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Regular Communication: Maintain regular communication with your patients through newsletters, emails, and social media. Share updates about new services, special offers, and health tips to keep them engaged and informed.
A Success Story in Membership Programs
City Creek Dental has demonstrated remarkable success by signing up over 3,500 active membership patients, each paying $55 per month. This strategic move has significantly transformed the practice, generating substantial Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR).
Financial Impact
With 3,500 members each contributing $55 monthly, City Creek Dental's MRR is:
3,500×55 = $192,500/mo
This translates to an impressive ARR of: $2,310,000/yr in predictable recurring revenue! Impressive!
This consistent revenue stream has provided financial stability and allowed the practice to invest in new technologies, hire additional staff, and enhance patient care services.
Marketing Strategies
City Creek Dental utilized a multi-faceted marketing approach to attract and educate patients about their membership plan.
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Facebook Geo-Targeting: By using Facebook's geo-targeting features, City Creek Dental effectively reached potential patients within their local area. Targeted ads highlighted the benefits of the membership plan, emphasizing affordability and comprehensive care.
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Small Business Marketing for Employee Benefits: Collaborating with local small businesses, City Creek Dental promoted the membership plan as an employee benefit. This initiative not only provided value to local businesses but also expanded the practice's patient base.
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Hulu Ads: The practice invested in Hulu advertisements to reach a broader audience. These ads educated viewers about the membership plan, explaining how it offers a cost-effective alternative to traditional dental insurance and provides extensive benefits.
Transformation of the Practice
The implementation of the membership program has brought numerous positive changes to City Creek Dental:
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Financial Stability: The consistent MRR and ARR have ensured a steady cash flow, reducing the financial uncertainty often associated with dental practices.
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Improved Patient Loyalty: The membership program has fostered a strong sense of loyalty among patients, who appreciate the predictable costs and additional benefits.
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Enhanced Service Offerings: The increased revenue has enabled the practice to invest in advanced dental technologies and expand their range of services, further attracting new patients and retaining existing ones.
Negative Impacts of Not Implementing a Membership Plan
Dental practices that do not adopt a membership plan face several disadvantages:
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Competitive Disadvantage: Without a membership program, practices struggle to compete with those offering affordable, comprehensive care plans. Patients are more likely to choose practices that provide predictable costs and added value.
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Losses from PPO Write-Offs and Administrative Costs: Practices relying solely on PPO plans often suffer significant financial losses. On average, such practices lose $36,000 per month due to PPO write-offs and associated administrative costs. This can severely impact their profitability and ability to invest in growth and improvement. BoomCloud has a PPO loss calculator that can show you exactly how much revenue you are leaving on the table.
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Patient Attrition: Without the loyalty fostered by membership plans, practices may experience higher patient turnover. Patients seeking better value and consistent care may switch to competitors offering membership programs.
City Creek Dental's success with their membership program underscores the substantial benefits of adopting such a model. The practice has achieved financial stability, increased patient loyalty, and enhanced service offerings. In contrast, practices that fail to implement membership plans risk significant financial losses and competitive disadvantage. Embracing a membership program can be a transformative strategy for any dental practice, providing predictable revenue and fostering long-term patient relationships.
Resources for Creating and Growing a Membership Plan
Scaling a Membership Plan
Market your plan to attract and retain members using digital strategies such as email, social media, and paid advertising. Start by contacting existing uninsured patients through text, email, and mail, educating them about the benefits of joining.
Attract new patients by running targeted ads on Facebook, Instagram, and Google Ads. Ensure your ads are highly targeted and highlight the benefits of your membership plan. Partner with local businesses and health organizations to promote your membership plan, offering discounts to area businesses referring employees or customers.
By following these steps, you'll create a membership plan that attracts and retains members, helping grow your practice. Keep track of your members, offer incentives and discounts, and continually evaluate your plan's performance to ensure it provides value to both you and your patients.
How Practices are Building Membership Plans:
Membership Software - BoomCloud
Membership plans are an effective way to reduce dependence on PPOs by providing patients with an affordable alternative to traditional insurance. These plans typically offer benefits like discounted services and preventive care for a monthly or annual fee, fostering patient loyalty and increasing practice revenue. BoomCloud helps practices create, manage, and grow their membership programs with customizable plans, automated billing, and patient support, enabling practices to retain more revenue and offer better patient care.
Veritas Dental Resources is your go-to partner for liberating your dental practice from the constraints of PPOs! With their expert services in PPO fee negotiation, contract optimization, and credentialing, they empower your practice to boost earnings. Imagine negotiating better fees, tapping into umbrella networks for juicier pay schedules, and launching dental membership plans without the headache of direct insurance company dealings. Let them handle the nitty-gritty so you can focus on delivering stellar dentistry with financial peace of mind.
The Thriving Dentist Coaching program, led by Gary Takacs, offers specialized guidance on reducing dependence on PPO contracts. Through tailored strategies, dentists learn how to negotiate better terms, optimize their fee schedules, and transition away from PPOs. This coaching helps practices increase profitability and financial stability while maintaining high standards of patient care.
Marketing Solutions - Gargle
Gargle is revolutionizing how to attract non-PPO patients using the latest in digital marketing wizardry. Imagine laser-focused ads, smart SEO strategies, and vibrant social media campaigns that draw in patients looking for top-notch care who are happy to pay out-of-pocket. This innovative approach significantly reduces reliance on insurance-dependent clients, paving the way for a more diversified and affluent patient base. By amplifying their online presence and leveraging data-driven techniques, Gargle is changing the game, turning practices into magnets for a richer and more varied clientele.