Innovative group practice executives don’t sit still. We have seen this while working with hundreds of group practices to implement, manage and grow high-performing dental membership plans across their enterprises. It has been inspiring to see the momentum before, during and after the COVID-19 crisis forced practices to shut their doors in the spring–and the subsequent successful rebounds.
One of the ways our customers took action to control the future of their businesses was through their membership plans. They carefully designed and priced their plans, followed best practices unique to DSOs and group practices, and ensured their staff and doctors were bought into the value of the plans. As a result, they have garnered positive financial results.
This article highlights how you, too, can set your group practice up for long-term financial success. Specifically, it covers how membership plans can generate reliable recurring subscription revenue, deliver a meaningful return on investment (ROI), and as a result make a real impact on your organization.
Protect your DSO or group practice with predictable recurring revenue
We witnessed many of our customers use their membership plan subscription income as their lifeline during the COVID-19 shutdown. Although these practices were not seeing patients, they were collecting subscription payments from their membership plan patients. Here are a few quick examples of subscription revenue that some of our multi-location practices collected between March 15, 2020 and May 31, 2020:
- Four-location practice (NC): $16,000
- Six-location practice (PA): $15,000
- Two-location practice (MD): $16,000
- Nine-location practice (CA): $18,000
Recurring revenue minimizes risk, strengthens the stability of a practice, and increases the value of a practice. And just as it did for these practices, a membership plan will generate consistent, recurring subscription revenue that will protect your practice during seasonal slumps in dentistry, economic slowdowns and future crises.
What would this look like for your practice? According to data from Kleer customers, membership plans generate $30-$50 per patient per month—or $30,000-$50,000 per month for every 1,000 patients your practice enrolls. The more patients you enroll, the more recurring revenue you receive.
The ROI of membership plans: Double your production per patient
In addition to generating recurring subscription revenue, membership plan patients also spend more with their practices. In fact, a membership plan can double your production per patient–if your plan is designed and priced correctly. (Helpful best practices for implementing a membership plan across a group practice enterprise are outlined in this 3 step guide.)
At Kleer, we offer a free service to analyze the practice management data of our customers. Consistently, we find that membership plan patients purchase twice as much treatment as uninsured patients do. Since membership plans include preventive care, membership plan patients complete 2X more hygiene reappointments than uninsured patients. Because 75% of dental treatment comes directly from hygiene appointments, membership plan patients naturally accept 2X the treatment and generate 2X more production than uncovered patients.
Not all membership plans drive results, but Kleer’s plans consistently perform at this rate or better. To help illustrate this, consider the findings from a study of one of our multi-location customers. We compared performance of membership plan patients to uncovered patients, specifically around the number of visits per patient, procedures per patient and net production per patient. The Kleer membership plan patients consistently performed better than uncovered patients. On average, patients with Kleer coverage visited 1.8X more, accepted 2.1X more procedures and generated 2X more net production than uncovered patients.
What does this look like for your practice? Based on the data from our customer studies, you can estimate the financial impact of implementing a Kleer membership plan solution at your practice. View the column below with the number of uninsured patients at your practice. The first row shows an estimate of how much revenue an average practice with this uninsured rate would generate if the patients remained uncovered. The following row shows the revenue potential if all of those patients were converted to a Kleer membership plan. The final column shows the approximate overall financial impact of implementing the Kleer solution and offering it to every uninsured patient.
By doubling the value of your patients, you can worry less about the impacts of infection control and patient distancing protocols. Additionally, since you are in control of the membership plan, you can account for PPE and infection control costs within your membership plan subscription price and fee schedule. You also have the ability to adjust your fees in the future if something else affects the cost of care.
In summary, your DSO or group practice can create a better future and improve financial results with an expertly designed membership plan. And you can start your path to building recurring revenue and doubling the value of your patients with the help of Kleer. You can deploy your membership plan across your group within days with the help of the Kleer Success Team who will guide you through design, pricing, training and implementation.
It’s easy to get started.
Kleer’s implementation process is 100% free.
Kleer’s dental membership plan software enables group practices to easily design, launch and manage membership plans across multiple dental practice locations. Over 200 group practice locations and 5,000 dentists use Kleer’s feature-rich platform, which is designed for scale and group practice success.
Written by Dave Monahan, CEO of Kleer. Monahan’s advocation for subscription-based dental care led to the founding of Kleer in 2016 and phenomenal growth in Kleer dental practices and membership since its pilot launch in September 2017. For further questions about increasing case acceptance and Membership Plans powered by the Kleer platform, go to www.kleer.com or reach out Dave directly at firstname.lastname@example.org
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