{"id":11552,"date":"2024-02-05T06:10:14","date_gmt":"2024-02-05T12:10:14","guid":{"rendered":"https:\/\/www.cainwatters.com\/digitalblogs\/?p=11552"},"modified":"2024-02-02T16:11:42","modified_gmt":"2024-02-02T22:11:42","slug":"dental-practice-fee-for-service","status":"publish","type":"post","link":"https:\/\/www.cainwatters.com\/digitalblogs\/dental-practice-fee-for-service\/","title":{"rendered":"Is Now the Time to Move Your Dental Practice to Fee-For-Service?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"11552\" class=\"elementor elementor-11552\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_ae_slider elementor-section elementor-top-section elementor-element elementor-element-35d3e5da elementor-section-boxed elementor-section-height-default elementor-section-height-default ae-bg-gallery-type-default\" data-id=\"35d3e5da\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_ae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5a5235ab ae-bg-gallery-type-default\" data-id=\"5a5235ab\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-32cfabb7 elementor-widget elementor-widget-heading\" data-id=\"32cfabb7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Best practices for making a seamless switch <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_ae_slider elementor-section elementor-top-section elementor-element elementor-element-865a05 blue-box elementor-section-boxed elementor-section-height-default elementor-section-height-default ae-bg-gallery-type-default\" data-id=\"865a05\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"has_ae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-28c16754 ae-bg-gallery-type-default\" data-id=\"28c16754\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4314de41 elementor-widget elementor-widget-text-editor\" data-id=\"4314de41\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Key takeaways<\/strong><\/p><ul><li>Insurance reimbursement rates have not kept up with\u00a0 higher practice expenses. Many private dental practices are adopting a fee-for-service model.<\/li><li>Changing to a fee-for-service model requires a shift in thinking.<\/li><li>Practice owners should consider ramping up marketing efforts\u00a0 and offering in-house membership plans to manage the sticker shock some patients may feel.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_ae_slider elementor-section elementor-top-section elementor-element elementor-element-22ee35b5 elementor-section-boxed elementor-section-height-default elementor-section-height-default ae-bg-gallery-type-default\" data-id=\"22ee35b5\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_ae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c274d ae-bg-gallery-type-default\" data-id=\"c274d\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-57a76e98 elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"57a76e98\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>In the ever-evolving dental healthcare landscape, practice owners are constantly exploring ways to enhance their practice management models. One approach gaining traction in the last several years is the shift from insurance-based reimbursement (PPO model) to a fee-for-service model.\u00a0<\/p><p><a href=\"https:\/\/www.cainwatters.com\/tim-greaves\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #33cccc;\">Tim Greaves<\/span><\/a>, CPA and Partner, says the case for going fee-for-service keeps getting stronger as insurance reimbursements continue to lag behind inflation.<\/p><p>\u201cInsurance reimbursement rates have not kept up with the higher expenses of running a practice, and I don\u2019t see that changing anytime soon,\u201d says Tim. \u201cThat\u2019s why, for many private dental practices, adopting a fee-for-service model makes sense.\u201d<\/p><p>According to Tim, it comes down to working smarter, not harder.<\/p><p>As a preferred provider, the onus is on the dentist to see more patients per day to reach profit goals. Not only does this make it difficult to deliver the highest standard of care to every patient, but it can also cause stress among the staff and burnout for the doctor.<\/p><p>Fee-for-service practices, conversely, aren\u2019t beholden to writing off a portion of their fees to meet the cost requirement that the insurance company requires. Dentists are free to set their fees at levels that make the most sense for their patients and the profitability of their practice.<\/p><p>\u201cEven if the practice loses a few patients, we\u2019re seeing that doctors are seeing fewer patients a day, providing more personalized care, and making as much or more in profits,\u201d says Tim.<\/p><p>Changing to a fee-for-service model requires a shift in thinking, as the prospect of losing patients might initially be unsettling for many dentists.<\/p><p>\u201cAre you going to lose some patients? Yes,\u201d says Tim. \u201cWill you have more time to deliver quality care at higher profit margins? If implemented strategically, yes.\u201d<\/p><p>To make a successful transition to fee-for-service, Tim recommends practice owners adopt a methodical and measured approach, starting with taking a deep dive into your numbers.<\/p><h5><strong>Evaluate Your Practice<\/strong><\/h5><p>When considering whether fee-for-service is suitable for a practice, the first thing to do is to look at the schedule. Is it full? Is it so full that the practice is booked out for two or three months?<\/p><p>\u201cIf you\u2019re a preferred provider and booked out more than a month, you\u2019re losing patients,\u201d says Tim. \u201cThe question then becomes, why would you be working so hard and writing off so much when you can see fewer patients and earn the same money?\u201d<\/p><p>The next step is to run reports on gross production vs adjusted production to get a clear idea of how much the practice is writing off, both by individual insurance companies and in total.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_ae_slider elementor-section elementor-top-section elementor-element elementor-element-4606606f elementor-section-boxed elementor-section-height-default elementor-section-height-default ae-bg-gallery-type-default\" data-id=\"4606606f\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"has_ae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-48d699f3 blue-box ae-bg-gallery-type-default\" data-id=\"48d699f3\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4adafd4c elementor-widget elementor-widget-text-editor\" data-id=\"4adafd4c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>\u201cIf a practice is doing $500,000 with insurance but is writing off $200,000, the baseline target is $300,000,\u201d says Tim. \u201cThis helps clarify how many patients a practice can lose while maintaining the same profit numbers.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_ae_slider elementor-section elementor-top-section elementor-element elementor-element-5fcf9755 elementor-section-boxed elementor-section-height-default elementor-section-height-default ae-bg-gallery-type-default\" data-id=\"5fcf9755\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_ae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3fa14bf7 ae-bg-gallery-type-default\" data-id=\"3fa14bf7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-531e2590 elementor-widget elementor-widget-text-editor\" data-id=\"531e2590\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Finally, conducting a detailed market analysis of your competition can help you <a href=\"https:\/\/www.cainwatters.com\/hdydpc-contact\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #33cccc;\">evaluate where your practice stands<\/span><\/a> among your peers.\u00a0<\/p><p>\u201cThere\u2019s no reason why an endodontist in a town with very little competition should cut their fees by 30-40% by being a preferred provider,\u201d says Tim. \u201cOn the other hand, practices in over-saturated markets might have trouble keeping patients when there are 10 other practices within a two-mile radius.\u201d<\/p><p>To offset this, Tim says practice owners should consider ramping up marketing efforts during the transition and offering in-house membership plans to manage the sticker shock some patients may feel.<\/p><h5><strong>Take a Measured Approach<\/strong><\/h5><p>Regardless of your competitive landscape, Tim suggests rolling out the fee-for-service model over at least a year.<\/p><p>\u201cThis gives you time to get your staff trained, systems in place, and patients educated on the upcoming switch,\u201d says Tim. \u201cEducating staff is a top priority before talking to patients.\u201d<\/p><p>Ensuring that your staff is well trained to communicate changes to patients and address potential concerns is vital, says Tim. Staff should be equipped to answer any questions regarding fees and payment options.<\/p><p>He also suggests taking a measured approach to dropping providers, in stages over a year.<\/p><p>\u201cIn my experience, it\u2019s best to phase out some of the smaller insurance companies first,\u201d says Tim. \u201cOnce a dentist is comfortable that patients are returning, then go for the bigger ones.\u201d<\/p><p>Tim adds that working with a PPO insurance consultant to evaluate your current insurance agreements and plan the roll-out strategy can pay big dividends.<\/p><h5><strong>Patient Communication is Key<\/strong><\/h5><p>Clear communication with patients about why you\u2019re switching to a fee-for-service model is crucial. Emphasize the benefits, such as enhanced quality of care, personalized treatment plans, and more time dedicated to each patient. Tim also recommends the doctor take the lead on patient communication.<\/p><p>\u201cIt\u2019s critical that the dentist personally talks to each patient prior to sharing any written communication,\u201d says Tim. \u201cSending a letter to tell patients that their dentist has switched to fee-for-service is a recipe for disaster.\u201d<\/p><p>Patients should also be educated on the letters they will receive from insurance companies once the transition takes effect.<\/p><p>\u201cSome of these letters can be pretty ominous in terms of the language, making the dentist out to be the bad guy,\u201d says Tim. \u201cThat\u2019s why each patient must be properly prepared and educated on what to expect.\u201d<\/p><h5><strong>Don\u2019t Try to Go It Alone<\/strong><\/h5><p>This is perhaps the most important aspect of making a successful switch, according to Tim. Even if you are 100% sure that your practice is ripe and ready to make the switch, it\u2019s crucial to have a team of trusted experts who help lead you through the process.<\/p><p>\u201cThere are a lot of factors that play into making the switch to fee-for-service successful,\u201d says Tim. \u201cTalk to your CPA. Consult with a PPO insurance consultant. Reach out to a colleague who has already made the switch. The last thing you want to do is dive in unprepared.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"has_ae_slider elementor-section elementor-top-section elementor-element elementor-element-5590268 elementor-section-boxed elementor-section-height-default elementor-section-height-default ae-bg-gallery-type-default\" data-id=\"5590268\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"has_ae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1978120f blue-box ae-bg-gallery-type-default\" data-id=\"1978120f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3bb7066c elementor-widget elementor-widget-text-editor\" data-id=\"3bb7066c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>If you\u2019re ready to test the fee-for-service waters, we\u2019re happy to help steer you in the right direction. For a real-world example of a dentist who made the break from insurance, check out this <strong><a href=\"https:\/\/www.cainwatters.com\/digitalblogs\/wealth-podcast-ep-141\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #33cccc;\">episode<\/span><\/a><\/strong> of our popular <a href=\"https:\/\/www.cainwatters.com\/wealthpodcast\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #33cccc;\"><strong>Accumulating Wealth podcast<\/strong><\/span><\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t<div class=\"has_ae_slider elementor-element elementor-element-574fdac e-flex e-con-boxed ae-bg-gallery-type-default e-con e-parent\" data-id=\"574fdac\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c38dff6 elementor-widget elementor-widget-text-editor\" data-id=\"c38dff6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\tAs always, CWA is here to help you reach all your practice and personal financial goals. <a href=\"https:\/\/www.cainwatters.com\/contact\/\" target=\"_blank\" rel=\"noopener\"><span style=\"text-decoration: underline; color: #33cccc;\">Contact our team<\/a> for a free consultation today.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Best practices for making a seamless switch Key takeaways Insurance reimbursement rates have not kept up with\u00a0 higher practice expenses. Many private dental practices are adopting a fee-for-service model. Changing to a fee-for-service model requires a shift in thinking. Practice owners should consider ramping up marketing efforts\u00a0 and offering in-house membership plans to manage the [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":11558,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[16,41,20],"tags":[],"ppma_author":[48],"class_list":["post-11552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-news-feature","category-featured","category-practice-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is Now the Time to Move Your Dental Practice to Fee-For-Service?<\/title>\n<meta name=\"description\" content=\"More dental practices are going fee-for-service as insurance reimbursements lag behind inflation. 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