Implementing a Dental Membership Program in 2023

1. ImplementingaDentalMembershipProgram in2023 A dental membership program is like a subscription service for your patients. It allows patientstopay aset feeforamembership“package”that includesannualcleanings,x-rays, andpreventativeservices.In addition,itoffersdiscountedelectiveorrestorativecare procedures.Wecan thinkaboutit asadiscounted fee-for-serviceplan. Brad James, Manager of Strategic Partnerships at Kleer, spoke with Skytale’s Greg Mahoney about how to implement a dental membership program in 2023 and beyond. You can listen tothe podcastorlearn morebelow.

2. Dental Membership ProgramTrends AccordingtoJames, membershipprogramsingeneralhavebecomemore popular. They workwellforbusinesses that needrecurringcustomersinacompetitive market. Consider Disney addingDisneyPlus—whichincreasedtheirvaluation asapublicly tradedcompany. Other companies like Costco, HelloFresh, Peloton, and Amazon Prime also host popular membershipprograms. Now,dentistry ismovinginthe same direction. A dentalmembershipprogramoffersmore convenienceforpatientsandpredictablecashflowforbusinesses. Dentalcostsare risingrapidly forpatients. In response,dentalmembershipplans arean innovativeway tomakedentalcare moreaffordableforthosewithout insurance.Even patientswithinsurancecanbenefitbecausemembershipplanscancombatsharplyrising

3. co-pays and allow patients to pay directly (at a discount) for procedures that aren’t insured. • Jamessaysthatprogressivepracticesare already targetinglocalemployerswiththeir membershipprogram. Manyemployers maynotofferdentalbenefits,butthis optioncould changethegame. • How Do Dental MembershipPlans Work? • Many of ourDSOclients have usedadentalmembershipplanbecause they can attractnew patients,keepthemcomingback intothe office,andmake theirservicesmore accessible. • They can beleveragedasamarketingtactic,andit’sawin-winforpatients. • In addition,Byrdadattorecentlysharedanotherprimary benefit:theseplanseliminate the need of a “for-profit insurer as a middle-man in the transaction between the patient and theirprovider.” • JamessharesthatKleertracksROIdatafordentalclientswho’ve implemented adental membershipprogram.The resultsare impressive:patientcaseacceptance doublesor triples.Andpracticescan bringin twotothreetimesmorerevenue. Buthow? • First, a membership program gets the patient’s foot in the door. And 75% of case acceptancestemsfromhygiene visits.Second,aprogramhelpsthe dentalteamclearly communicatewithpatients.Aspatientsareinformedoftransparentpricing, it leadsto membershipenrollmentandtrust. • What Does a Dental Membership Program Typically Include? • Here’sanexampleofatypicalmembershipplan: • Tworoutine dentalcleaningswithfluoride peryear

4. All x-raysrequiredfor services included • 15%discountonallother servicesandproducts • Emergencyexamsincludedin membershipfee • Which Dental PracticesBenefitFromaMembership Plan? • Practices with 10% or more patients who are out-of-network or without dental insurance benefitsare bestsuitedforamembershipplanbecause they attractpatientswhoknow they wouldbe payingout-of-pocket.As“members,”those patientsstayinthe practice for bothincludedanddiscountedservices. • Dentalmembershipplans work best forgeneraldentistsratherthanspecialists,pediatric dentists,ororthodontists. That’sbecause generaldentiststypically offerrepeatable services,likehygiene appointmentsandX-rays,thatpatientscan expect toneedyearafter year. • Dental MembershipProgramvs.DiscountPlan • Dentaldiscount plansaremoretraditional, andtypicallyofferalowannualfee that the patientpays.The patient’s appointmentsthroughout the year will bediscounted.But as James points out, it doesn’t really change the patient’s behavior. They still have to pull out theirwallet andpay beforethey leave. • A membershipplan hasahigherprice point, but it includesallpreventativecare—noend- of-appointmentpaymentis needed. Andit’sfully customizable foreachpractice, whereas discountsareusually part ofanetwork. HowtoImplementaSuccessfulDentalMembership PrograminYourPractice

5. If you’rehopingtoimplement adentalmembershipplan inyourpractice,herearesome thingstoconsider: • Servicesoffered • Tobegin, considerwhat servicestoincludeinthe plan.Practiceswhoofferamembership plan oftenwrestle withhowtoprovidebenefitstopatientswhoneedperiomaintenance services every three to four months. This can be addressed in two ways. First, by explaining toperiopatientsthattwoof theirmaintenanceappointmentswouldbeincludedin the membership. The other two would be provided at the discount percentage the membership offersfor“allotherprocedures.” The “discounted”appointmentswould beonthe2ndand 4th appointments, where the “included” appointments would be the 1st and 3rd appointments. • Theotheroption toaddress thisissue isbyaddinga“perio-specific” membershipwithits ownprice. • Discountedrate • Thisrateshould notbetooaggressive as togiveawaymorethannecessary.Itshouldbe just enoughtoincreasecase acceptanceand“stickiness” of thepatient. Thisis typically accomplished with a 15-20% discount. Are there niche services your office provides that youwishtoexcludefromthemembershipplan? Besuretonote thosein any digitalorprint media. • Feestructure • AsDSOconsultants, wepreferbuildingthemembershipfeesbased on thenumberof household memberson theplan. Here’soneway todoit: • First, build the membership fee as approximately 30% of the yearly UCR fees for a newpatientseenin hygiene.

6. Second,if the totalfeesforanewpatienttohavetwohygieneappointmentswith • fluoride and all x-rays over a 12-month period was $825, 30% would be $247 for a single-personmembership. • Finally, formulti-personmemberships,discountingeachmemberbyapproximately • $50isanotable economypatientsrecognize. And, ithelpsthemtosee additional value. • Communications • When you create a membership plan for your organization, be sure to tell people about it. Creating a trifold brochure is a great place to start. Next, add posters in treatment rooms, content on yourwebsite,andevenpostson socialmedia. • Detailstoinclude: • Membershipapplication (whereandhowtoapply) • Benefitsyouprovide • Number ofmembersperhousehold • Beginningandendingperiodsofmembership • Writeit onasinglepagethat’seasy toread.Nolegalese! • Advice for Dental Practices When Implementing a MembershipProgram • James offers a few pieces of advice to dental practices aspiring to launch a membership program:

7. Makesureyourteam is upto speed.They’llneedtobeabletoexplainto patientstheperksoftheprogram,whyyourpracticeisofferingit,theprice structure, and so on. It also helps if you can be open to team members’ input. Buildaprogramthat’smeasurable.Amembership planisn’tjustanice-to- have—itcanbeamajorrevenuedriver.You’llwant totrackthingslike enrollment, renewal, and case acceptance. Some practices have built their brandon amembershipplan,andtrackingKPIscanhelpaprogram succeed. IfyourunaDSOwithmultiplelocations, your programneedstobe scaleable.It’sonethingtoimplementamembershipprogramatone location,andanotherthingto bring ittoall yourlocations.Butthe program shouldbeconsistentacross theboard,ifpossible. Dental Membership Regulations Thereare fewregulations regardingdentalmembershipprograms, typicallymanagedby the state insuranceboards. This wasdue tolobbyingbyinsurance companiestoassure dentistswerenot creatingtheirown insuranceprograms. Hereareafewitemstokeep inmind: First, checkwithyourstate insuranceboardtobesure youdon’t needtoregisteryour membershipprogram. Ifyouneedtoregister, it’s usually aquickprocess.Providethe membershipdetails, marketingmaterials, andlocationofyouroffice(s). The boardmay chargeasmallfeewhenyousubmit yourapplication. Regulations will focus on how the membership plan is administered, the flow of funds, and membershipfees.Toavoidissuesintheseareas,neverrefertothe membershipprogramin writtenorconversationalformas“youroffice’sinsurance program.”The membershipfees collectedare not “premiums.”Thereshouldneverbe a“deductible”forbenefitsof the membership. Mentionofpremiums ordeductibleswillbe redflags foranyinsuranceboard audit. Lastly,if youprefertooutsourcethe creation, administration,andcollectionof membershipfees,thereare options.There are insurance companieswhohave created

8. membership plans for dentists and other healthcare environments. Or, there are also vendorswhoare close tothe dentalindustrywhocan buildthe membershipprogramon your behalf.They willeven trainyour team. ImplementaMembership ProgramwithaDSO Consultant Dentalmembershipprogramscanaddvalue because theycreate stickinesswithyour patients.SkytaleGrouphelpsgroupdentalpracticescreatemorevaluefortheir organizationthroughstrategicconsultingandfinancialadvising. Learnmore aboutdental membershipprogramsorexplorehowthe SkytaleGroup canhelp yougrowyourdental empire. Contact us.