Offering excellent financial options achieves two primary goals: (1) helping more patients receive necessary or desired care and (2) enabling dentists to perform the type of dentistry they enjoy, in the manner they prefer. The result? Happy patients and satisfied dental professionals.
The options outlined in this article are applicable across all types of dental practices, whether large or small, new or established, urban or rural, solo or group. These options offer the following benefits:
Flexibility balanced with firmness, meeting the needs of most patients.
Lower costs of financial management.
Reduced time spent on statements and collections.
Enhanced cash flow.
Improved treatment acceptance.
Optimized scheduling.
The Model of Success
This model serves as a benchmark for setting up, administering, and monitoring your systems. Although it may seem unconventional at first, it is a sound strategy for a productive, profitable dental practice:
See fewer patients daily.
Provide as much treatment as possible during each appointment, when appropriate.
Minimize the number of visits per patient.
Reduce the number of team members by staying organized.
Maximize the skills and talents of your team.
Increase the practice’s profit margin.
Share profits with your team members and doctors.
Reduce stress.
Sounds good? Let’s explore some practical financial options to achieve this.
Option #1: 5% Fee Reduction for Full Payment Before Treatment
This option incentivizes patients with healthy savings or checking accounts to pay in advance, reducing no-shows and broken appointments. Here’s how to implement it:
Offer this option for cases above a specific amount (e.g., $500), determined by discussing with your business team.
Present it clearly to patients:
Example:
Financial Coordinator (FC): Ms. Jones, many of our patients choose to reduce their fees by paying in full before treatment. Would that interest you?
Ms. Jones: Of course. How does that work?
FC: If you pay for your treatment in full before the doctor begins, we’ll reduce your fee by 5%. For example, with a $3,000 treatment plan, you’d save $150. Would that work for you?
Be prepared to discuss the complete treatment plan and present all financial options to the patient.
Option #2: 50% Deposit to Reserve Appointments
For treatments requiring multiple appointments, ask for half the total fee when reserving the first appointment and the other half at the initial visit. This reduces the risk of no-shows and broken appointments. Here’s how to present it:
Example:
FC: Ms. Jones, we’ll reserve two hours of Dr. Jameson’s time just for you. To do so, we ask for half the fee upfront and the remainder at the first appointment. This allows us to prepare thoroughly and spread the payments for your convenience.
Option #3: Payment by Appointment
Divide the total treatment cost evenly over the number of appointments. This approach ensures that payments are completed by the end of treatment. Present this option as follows:
Example:
FC: Ms. Jones, your total investment for treatment is $1,200, divided into three appointments. That’s $400 per visit over two months. Does this work for you?
Option #4: Accept Bankcards
Promote the use of major credit cards (Visa, Mastercard, Discover, and American Express) in your practice. Patients appreciate the flexibility and convenience of paying via credit cards. Actively inform patients about this option in newsletters, on social media, and during financial consultations.
Option #5: Patient Financing Programs
Patient financing programs allow patients to spread payments over several months. This is especially helpful for extensive treatments. Offer both deferred-interest plans and extended payment options.
Example:
FC: Ms. Jones, we offer financing options that allow you to pay monthly, starting as low as $30 per month. Would that make this treatment possible for you?
These programs not only benefit patients but also enhance case acceptance and financial stability for your practice.
Option #6: Banking and Lending Institutions
Some patients may prefer traditional bank loans for financing dental care. Partnering with lending institutions can provide another avenue for patient payments while reducing your practice’s financial risk.
Option #7: Insurance Management
While dental insurance can be helpful, ensure your practice manages it effectively. Collect co-pays at the time of service and educate patients that insurance is a supplement, not a pay-all solution.
Option #8: Electronic Funds Transfer (EFT)
Set up automated EFT payments for patients who prefer a hassle-free way to manage their financial obligations. This method is familiar and convenient for most families.
Addressing Emergencies
For emergency patients, establish clear protocols. Collect payment for the emergency visit upfront and discuss financial options before proceeding with additional treatment. This ensures financial security while providing necessary care.
Best Practices Overview
Establish a written financial protocol that balances patient flexibility with practice firmness. By offering multiple payment options—including prepayment discounts, payment by appointment, credit cards, financing programs, and EFT—you can meet the financial needs of most patients while enhancing your practice’s stability. Train your team to present these options confidently, emphasizing the benefits to patients. With the right systems in place, your practice will thrive.
