A Tale of Two Membership Plans

Why do some dental managers love membership plans while others hate them? It all boils down to how the plan is structured. There are two main types of dental membership plans:

 

• • Third-party membership plans: These plans are offered by a third-party company that connects patients with dental offices. The dental office pays a fee to be part of the network and agrees to accept a discounted fee schedule for patients who come through the plan.

• • In-house membership plans: These plans are offered directly by the dental office. The dental office sets the fee schedule for the plan and keeps all the revenue less a small transaction fee.

Why third-party membership plans can be a bad deal for dental offices

Third-party membership plans can be a bad deal for dental offices for a few reasons:

 

• • The dental office has no control over the fee schedule. The third-party company sets the fees that the dentist must accept, which can be significantly lower than the dentist’s usual fees. This can make it difficult for the dentist to make a profit on the plan.

• • The third-party company takes a cut of the fees. The dental office must pay a fee to the third-party company for each patient who signs up for the plan. This further reduces the dentist’s profit margin.

• • The patient may already be in the dental office. In some cases, patients who are already interested in the dental office’s services may sign up for the third-party membership plan instead of going directly to the dentist. This means that the dental office is paying the third-party company for a referral that they wouldn’t have needed.

Why in-house membership plans can be a good deal for dental offices

In-house membership plans can be a good deal for dental offices for a few reasons:

 

• • The dental office has control over the fee schedule. The dental office can set the fees for the plan in a way that ensures that they are profitable.

• • The dental office keeps all the revenue. There is no third-party company to take a cut of the fees.

• • The plan can attract new patients. The dental office can use the membership plan to attract new patients who are looking for affordable dental care.

Here are some additional tips for creating a successful in-house membership plan:

 

• • Offer a variety of plan options. This will allow you to cater to the needs of a wider range of patients.

• • Price the plans competitively. The plans should be affordable for patients, but they should also be profitable for the dental office.

• • Promote the plans to your patients. Let your patients know about the benefits of membership plans and how they can sign up.

By following these tips, you can create a membership plan that is beneficial for both your dental office and your patients. If you are interest in a white label dental membership plan for your office, click here for a free demo.