The Automatic Patient Podcast

Unlocking Dental Profitability: Mastering Costs, Membership Plans, and Insurance Strategies

Episode Summary

Introduction to Financial Insights in Dentistry:Jordon Comstock and Dr. Dan Nelson discuss the challenges and opportunities in managing practice finances, including calculating true costs and identifying areas for improvement.

Episode Notes

Bullet Point Summary:

Introduction to Financial Insights in Dentistry:
Jordon Comstock and Dr. Dan Nelson discuss the challenges and opportunities in managing practice finances, including calculating true costs and identifying areas for improvement.

The Importance of Cost-Per-Procedure Analysis:

• Stories about initial discoveries of low profitability in procedures like crowns.
• The shock of realizing practices may lose money on specific insurance reimbursements.
• Encouragement for granular tracking of profitability per procedure.

Insurance Pitfalls and Overhead Challenges:

• Insurance contracts often lead to significant underpayments, as highlighted by shocking examples like $3 profit on procedures or $39 losses on fillings.
• The necessity of understanding percentile pricing and staying in the 80th-90th percentile for optimal revenue.

Addressing PPO-Driven Losses:

• How practices can renegotiate insurance contracts or use CE programs to navigate reimbursement loopholes.
• Insights into Delta Dental and its impact on pricing strategy.

The Power of Membership Plans:

• Benefits of creating patient benefit plans to offset insurance losses.
• Examples of practices successfully implementing BoomCloud's membership platform for consistent cash flow and patient retention.
• Membership plans as a stepping stone for transitioning out of PPO dependency.

Strategies for Insurance-Free Practices:

• Gradual reduction of insurance contracts by identifying and eliminating the least profitable plans.
• Building financial stability through recurring revenue from membership plans.

Leveraging Tools and Team Expertise:

• Emphasizing the value of tools like BoomCloud and consultants to streamline practice operations.
• Why adding financial analysis to overhead is a must for sustained growth.

Empowering Practice Owners:

• Advice for practice owners to avoid fear-based decision-making and embrace fee adjustments.
• Encouragement to hire experts, coaches, or facilitators to manage the complexities of modern dentistry.

Closing Thoughts on Financial Success:

• Importance of understanding overhead, cost-per-procedure, and ideal patient profiles for long-term success.
• Both BoomCloud and Elevation Association emphasize ongoing education and resources for dental practices.

Listeners will walk away with actionable steps to tackle their financial challenges and optimize profitability in their dental practices!