Perspectives on dental membership plans

In response to shifts in the marketplace and changes in consumer behavior, membership plans have enjoyed a resurgence among dental practices. We interviewed Adrian Huang, DMD, and Brian Wilk, DMD, to learn the challenges they’ve faced in growing their practices, what resources have helped them, and how membership plans fit into their business strategies. They also shared advice for new practice owners.

Adrian Huang, DMD

1. What have been some of the biggest pain points you’ve experienced as a practice owner?

Some of the biggest pain points include attraction and retention of new patients, staff consistency and continuity, sticking to our budget, and controlling cash flow in the office.

2. What resources have been helpful in addressing these pain points?

Better patient-contact software and social media have helped attract and retain more patients. We’ve also benefited from communications training to improve interactions between patients and staff. Using reporting software to keep close tabs on key performance indicators has made it easier to stick to a budget and identify weak spots within accounting and patient care. From the very beginning, we’ve implemented membership plans for patients to establish loyalty and continuity of care.

3. Why did a membership plan become a part of your strategy and how has it helped your practice?

Membership plans have helped us gain new patients by allowing them to have a lower cost barrier to enter the practice. A membership plan also establishes loyalty by allowing patients to continue preventive care appointments without feeling like they have to be charged each time for routine exams and prophylaxis appointments.

Moreover, patients can complete treatment plans with a discounted rate, so they’re more apt to accept treatment knowing that they have this added benefit. They appreciate the fact that they can apply a reduced fee structure, or Kleer Advantage program, to all aspects of dentistry, including cosmetic treatment and orthodontics, which are not typically covered by traditional insurance. If patients have emergencies, they are also more inclined to come in earlier to get treatment because they are members.

4. What is one piece of advice you would share with a dentist who just became a practice owner?

Put yourself in the shoes of patients and prospective patients. Try to understand their wants and needs from a financial, clinical, dental, and psychological perspective. Look for ways to meet those needs. Give them what they want in a convenient and efficient way, and your practice will thrive in any environment.

Adrian HuanG, DMD, is a graduate of the University of Kentucky College of Dentistry in Lexington, Kentucky. He has owned and operated general dentistry practices in two different states. Dr. Huang has contributed articles to Dental Economics and taught as an assistant professor at Roseman University of Health Sciences.

Brian Wilk, DMD

1. What have been some of the biggest pain points you’ve experienced as a practice owner?

Having started a practice from scratch 26 years ago, I’ve experienced many pain points. In the early years, the pain points were cash flow and attracting new patients. In recent years, they have been staffing and managing overhead.

One pain point that has always been present is attracting more fee-for-service patients. In the past few years, many offices have started offering patient discount plans, offering discounts of 15% to 30% off regular treatment fees, to attract fee-for-service patients. These plans have also included two prophies and exams plus needed radiographs for a reduced, fixed cost.

For us, the idea of an “in-house” dental plan sounded great, but we initially found it was an administrative nightmare. Patients came in one month after their year of coverage was up and expected their visits to be covered. In the end, it was us versus the patients—and patients always won. Inevitably, these situations led to an even greater discount. For example, we might appease a patient by giving them 15 months’ worth of treatment instead of 12 for the same reduced cost.

The time we spent administering our own plan was exhaustive, and we had trouble collecting the full annual fee every 12 months. Patients would complain when they didn’t get their second prophy included, even if it was 15 months later.

2. What resources have been helpful in addressing these pain points?

Dental suppliers have stepped up. They’ve helped manage inventory, which has improved our cash flow. There are companies that can help outsource human resources, although the downside is their fees are high. For marketing, digitally specialized and SEO companies have helped attract new patients. Lastly, we’ve partnered with Kleer to develop a membership plan that works.

3. Why did a membership plan become a part of your strategy and how has it helped your practice?

Membership plans are a great benefit to our practice. First of all, we offer a 25% fee discount (which is still less than the discount required by most PPO plans), and there is no paperwork. Therefore, membership plans help us build a base of patients who typically pay higher fees than almost all PPOs. It’s a no-brainer to build this segment of your patient base rather than the PPO side.

As I mentioned, we came to partner with Kleer for help administering our membership plan. For a small fee per month, Kleer manages the payments and deposits them into our account for our in-house dental plan. Patients are billed monthly—not annually. For patients who come in 15 months after the first prophy, that means we’ve collected 15 months’ worth of fees, not 12, and we’re able to serve them without problems.

Monthly collection of fees has other benefits. On traditional discount plans, patients might join for a year but then choose not to renew for six more months … and then renew for another year, thus decreasing your monthly revenue. Our membership plan includes monthly automatic debits/credits, which ensures 100% collection—and best of all, zero complaints.

Lastly, to get discounts on treatment, patients are required to pay at time of service. This really helps us keep our receivables down and save money on billing and collection costs.

4. What is one piece of advice you would share with a dentist who just became a practice owner?

Stay focused on quality and treat your patients like gold. It’s a long road, so don’t rush it. I’ve seen dentists try to go overboard with treatment, only to scare patients away.

I have a tremendous number of patients who have been visiting my office for more than 20 years and are very loyal. These kinds of patients come to trust and respect you so much that they never question your recommendations. Plus, these patients are a great referral source for your practice. I’ve found great patients generally refer other great patients. Accordingly, difficult patients refer other difficult patients.

Brian WilK, DMD, is a graduate of the University of Pennsylvania School of Dental Medicine. He founded Highpoint Dental Medicine in 1992, where he has since been in private practice. Dr. Wilk has authored numerous articles on immediate temporization and the use of technology in dental practices.

Adrian Huang, DMD, and Brian Wilk, DMD, were recently recognized as two of Kleer’s 2018 Most Influential Dentists in America, a ranking of 156 dentists based on their social profiles, industry involvement, and patient ratings. To learn more about the dentists and selection process for Kleer’s first annual Influencer Program, visit kleer.com/influencers.