Why I Switched from DIY to a 3rd-Party Dental Membership Plan Partner
I have always been a dentist eager to try new things and continually seek ways to enhance my clinical and business practices. This approach has helped me stay energized and stave off burnout.
About 10 years ago, I started researching in-house membership plans. I loved the idea of offering patients an alternative to traditional dental insurance, especially those who had just retired or lost their coverage. At the time, 90% of my patients were in-network with PPOs (preferred provider organizations). Only 10% did not have insurance benefits and were considered cash-paying patients.
If a patient didn't have or had just lost their benefits, they would often ask about the alternatives or whether they should buy their own private insurance. The mindset was that they “needed” insurance similar to medical insurance to receive treatment. Dental professionals are well aware that dental and medical insurance are very different animals. But some patients have created this mental barrier regarding dental insurance and moving forward with their recommended treatment.
I was tired of this and knew a membership plan was the start of a new way. A program that offered participating members a yearly fee that included their check-ups, x-rays, two cleanings, and two exams per year, along with a 15% discount on any other treatment, was where I wanted to start.
How dental membership plans improve patient retention and replace inconsistent discounts
The first question I had to ask myself was, didn’t giving those cash patients a discount feel counterintuitive, wouldn’t it hurt the practice’s bottom line?
In the short term, yes. However, I saw a path toward a fully out-of-network practice in the long term. How was this possible? Because once patients became patients, they stayed due to the relationships I had established with them. Today, I’m proud to say we’re 100% insurance-independent, and it all started with the success of our in-house membership plan.
The other major reality was that we were already offering cash patients informal discounts, such as 15% off here or 20% off there, to keep them “happy” and encourage them to move forward with treatment and stay loyal to our practice. Cash patients are like NBA free agents; they can leave anytime and sign with another team.
Often, these discounts varied for each patient and procedure and were inconsistent, creating an accounting challenge. Formalizing those savings through a structured membership plan created clarity. It gave patients a greater incentive to stay with our practice and continue their treatment. In addition to the membership plan, patients can also apply for third-party financing.
More clarity for the staff
We also wanted to eliminate awkward discount conversations, even with staff, ex-employees, and their families. Once we dialed in the fees, verbiage, and policies, patients appreciated the simplicity, transparency, and affordability. And for my staff and me, there is now no more stress over which patient gets a discount or discussion over the fee. We have the plan’s policy set in place.
The DIY phase
Back to my story. I was aware of only a few practices doing something like this, so I started from scratch. I contacted the Massachusetts Board of Dentistry to learn about the legalities of such an endeavor. I also discussed the rules and regulations with all contracted insurance companies.
I hired a designer for print brochures, placed them in every operatory and the waiting room, and trained staff to promote the plan. I started very slowly. I kept reminding the staff to make patients aware of the plan. Eventually, we established a digital presence, posted the plan on our website, created email campaigns, and developed social media posts. It took a lot of time and energy to get off the ground. Over time, our membership plan became an integral part of our daily conversation. It was rewarding but time-consuming.
This didn’t happen overnight. When introducing something new, like a membership plan, it takes ongoing effort. Start with one “champion” on your team as the go-to expert. Make sure everyone answering phones uses consistent, clear language. Ideally, your whole team should understand the plan, explain it confidently, and communicate its value to help patients stay loyal and move forward with treatment. Keeping it simple makes all of this easier.
Why I made the switch to a third-party
We loved the predictable revenue, improved case acceptance, and the ability to serve patients without the headaches of insurance. We built and managed everything in-house, such as tracking sign-ups, expirations, and handling renewals.
I learned a lot doing all of this, but if I were to do it from the start in this day and age, I wouldn't hesitate to hire a third party to get it started and implemented. In the past, like many dentists, I figured, “Why pay someone else to do something I can do myself?”
I am happy I did it, but looking back, building the program myself took a tremendous amount of time and energy. It was a lot of work. Running a successful dental practice is already a full-time job. Managing a membership plan can be a logistical challenge.
Time is precious for dentists, so now, when I add new things to my practice, I prefer to have a third-party specialist in a particular field do it for me. Especially when it comes to technology or software, I leave it in the hands of experts who understand that this is their business and that they continually improve and add new updates and features. As our membership base grew, managing the plan manually became more time-consuming.
Managing 25 members is one thing; 500 or 1,000 is another. With a third party, we could automate renewals, send email and text reminders, provide real-time dashboard updates, follow up on expired cards, and facilitate seamless payment processing. We could also have a robust reactivation program with professional infrastructure powering it on the back end.
When considering starting or improving an existing plan, consider partnering with a third-party provider. It’s not about giving up control; it’s about making a smart business move with a solid return on investment and time. Sometimes, the most efficient move isn’t doing it yourself; it’s finding the right partner to do it better.
About the Author Eric Block DMD, CAGS, FICOI, FICD, FAADS, FIADFE
Dr. Eric Block is a full-time practicing dentist in Acton, Massachusetts, and a serial entrepreneur, advisor, key opinion leader, and investor passionate about helping dentists become more efficient, productive, and less stressed. He is the Co-founder of the International Academy of Dental Life Coaches or IADLC.com. He is a Wellness Ambassador to the ADA and the Former Chairman of the Massachusetts Dental Society's Health and Wellness Committee. He hosts the Stress-Free Dentist podcast show and Facebook group. He is the author of a series of non-fiction and children’s books, which can be found on Amazon.
Check out www.TheStressFreeDentist.com for upcoming events.
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