Setting the Right Fees for Your New Dental Practice

As a new dentist opening your own practice, one of the biggest decisions you’ll face is how to set your fee schedule. Getting this right can make or break your business model and your profitability. Many dentists take the easy route of simply joining PPO plans and adopting the PPO fee schedules. However, this can be a costly mistake.

The Pitfalls of Blindly Joining PPO Plans

Dental PPOs aim to keep costs low for their members. This means their fee schedules are often set well below the usual, customary and reasonable rates for your area. If you default to a PPO fee schedule without analysis:

– You may be undervaluing your services from day one

– Your revenue potential is artificially capped

– You lose the ability to control your own pricing

While PPO participation can provide a steady stream of patients, you need to carefully weigh the perceived benefits against the constraints set on your fee structure and practice.

Do Your Research First

Before signing any PPO contracts or setting fees, invest time into researching appropriate fee levels for your location and services using reliable, independent sources like:

–  Fair Health.   https://www.feeestimator.org  

–  American Dental Association    https://ada.org 

This research will give you a solid benchmark for setting your own fee schedule at market rates that accurately reflect your costs, expertise, and desired profit margins.

Other Considerations

Beyond just researching averages, other factors to consider when setting fees include:

– The positioning and brand image you want to portray

– Your practice’s overhead costs and revenue goals

– Potential membership plan or in-house dental savings plans

Getting your fee schedule right from the start allows you to maximize revenue, avoid undervaluing your services, and maintain control over your pricing strategy.

By taking a proactive, research-driven approach, you can set yourself up for long-term success instead of letting PPOs dictate the terms. Invest the time upfront to implement a fee schedule optimized for your unique practice’s needs.