Knockout! Debunking 5 Common Myths About Dental Membership Plans
Dental membership plans are among the easiest, most effective revenue-generating strategies and still the most underrated. Too often, misconceptions and outdated fears prevent practices from tapping into this powerful tool for growth, patient loyalty, and predictable revenue.
It's time to step into the ring! We recently hosted a webinar, “The Membership Myth Takedown,” where we set the record straight, tackling real questions from dental professionals about the most common (and some wildly off-base) misconceptions surrounding membership plans. Leading the charge were Kleer and Membersy CEO, Dave Monahan, Spodak Dental Group founder, Dr. Craig Spodak, and Kleer and Membersy Director of Customer Success, Devin Joyce.
Let's recap the myths they busted:
Myth #1: Membership plans can't benefit my practice.
This is a big one, particularly for fee-for-service practices or those in affluent areas. Dr. Spodak shared his initial surprise that even wealthy patients, accustomed to insurance "coverage," felt hesitant about dental care without a similar structured plan. "I knew we had to approach our patients with something that would allow them to know they could have regular dental care for a fixed, low monthly cost," he explained.
Dave backed this with compelling data. Kleer and Membersy's research consistently shows uninsured patients avoid the dentist primarily due to lack of coverage and fear of high, unpredictable costs. A membership plan directly addresses this. The results?
- Increased Engagement: Patients on a plan visit about twice as often, accept twice the amount of care, and drive twice the production compared to non-member cash patients.
- Reduced No-Shows: No-show rates plummet from an average of 15% for uninsured patients to just 5% for members.
- Patient Reactivation: 5-10% of dormant patients return when marketed a membership plan.
- New Patient Retention: Over 90% of new patients who join a plan return, compared to only about 40% of cash-pay new patients. Dr. Spodak also highlighted a crucial, often overlooked benefit: "When you're locked in with a membership plan, you're not shopping for a dentist." This fosters loyalty and reduces patient attrition.
Myth #2: Membership plans break the rules – are they even legal?
Concerns about legality and interference from insurance companies are common but largely unfounded. Dave clarified that while 35 states have regulations (DMPO/DPO rules, with 25 requiring licenses like California’s Knox-Keene Health Care Service Plan Act), membership plans are absolutely legal when structured correctly.
"That's a complete myth," Dave stated regarding insurance companies preventing plans. Most insurance agreements don't even contain clauses that would conflict, and for those that do (typically older agreements stipulating you can't offer a fee lower than their reimbursement), well-designed membership plans by default don't undercut these rates. The key is compliance, which a knowledgeable partner can manage.
Myth #3: Any solution can do the job well.
Dr. Spodak emphasized the importance of a "seamless user interface for the patient" and robust backend capabilities. "I dreamt of something that could do it all for me, report back how many cleanings, track delinquency...With the original plan I was on, we had to do all this manually."
Dave expanded on this, outlining critical features that differentiate effective solutions:
- Professional Patient Experience: Easy enrollment, a dedicated portal, and clear communication.
- Automation: Handling recurring payments, renewals, and patient communications.
- PMS Integration: Features like auto-enrollment, automated benefit tracking (e.g., used cleanings), and auto-posting of payments significantly reduce administrative burden.
- Performance Tracking & ROI: Integrated systems can show the actual financial impact by comparing member patient value to non-member and insured patients.
- Expert Support: Guidance on plan design, implementation, team training, and ongoing support.
"The idea you can do this with a spreadsheet or hack it in your PMS is a misconception if you truly want to understand its value and impact," Dave concluded.
Myth #4: Membership plans are difficult to manage.
Building on the previous point, the administrative burden is a major fear. Dr. Spodak, running a large 55-member team, attested, "Kurt, who handles our memberships, loves the product... If it were difficult, I'd be called in." He recalled the early days of manual tracking: "It was so cumbersome and so difficult, and still worth it. Now it just got easier." Dave pointed out that modern platforms automate tasks like agreement signing, auto-renewal notifications (and opt-outs, as federally required), payment failure follow-ups, and lifecycle communications. This frees up the front office. Dr. Spodak powerfully added, "If your team is not happy, if it's cumbersome... you won't be able to implement it. Use your team for patient interaction."
Myth #5: Managing an in-house plan is just as effective.
Many practices attempt DIY plans but often see them underperform. Dave identified key reasons:
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Poor Design: Plans not aligned with office demographics or doctor treatment philosophies.
- Lack of Owner/Executive Buy-in: Without leadership championing the plan, it falters.
- Lack of Office Team Buy-in: If the team finds it cumbersome or doesn't understand its value.
- Hesitancy to "Sell": Teams may feel uncomfortable, but as Dr. Spodak passionately argued, it's not selling; it's "an obligation to serve our patients and figure out what's getting in the way of them getting healthy."
Dr. Spodak also shared his own "bumpy road," initially hiding his plan due to a "scarcity mindset." Once he made it front-facing, "that's when our practice really got traction."
The knockout punch: Accessibility and transparency
Beyond busting these myths, the webinar underscored a fundamental truth: dental membership plans make quality care accessible and affordable. Dave highlighted that patients want dental care because they associate it with better overall health, quality of life, and even longevity. Their main barriers? Perceived cost and lack of coverage, with patients often overestimating dental costs by 2-4 times.
"For people to know they can have dental care... at a fixed monthly amount. That's an amazing proposition," Dr. Spodak summarized.
The consensus was clear: a well-designed, professionally managed membership plan isn't just a revenue generator; it's a patient-centric approach that builds trust, loyalty, and a healthier practice.
Interested in learning how a membership plan could transform your practice? Explore the possibilities with Kleer and Membersy.
Get started, today.
Our experts will show you how our advanced, cloud-based membership plan platform—coupled with resources, tools and support from the experts at Kleer, can bring your practice phenomenal results.
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