August 1, 2022
Inflation affects everything and everyone—whether it’s the cost of groceries, the price of filling up your car’s tank, or your rent due at the end of the month, life becomes harder when things become more expensive. If costs that seem to continue creeping higher are starting to make you worry about your well-being and the future of your dental practice, don’t fret. Here are some tips for keeping your practice profitable, even as inflation continues to rise.
#1: Increase the Number of People Coming into Your Office
You might be able to get creative or take advantage of options like referral programs to increase your caseload. This can be challenging though—you have to ensure that you and your staff can handle the increased workload and avoid burnout. This could be especially tricky if your office is small, and your team is forced to work long hours; plus, those additional hours need to be paid for!
#2: Raise Your Fees
Your patients might not be as upset as you’d expect about rate increases, given that everything else around them is also increasing in price. However, it’s still critical to do market research to understand their current situation and find the ceiling of what they can still pay. Communicating any price increases in advance and the reasoning behind them can also make your patients more understanding. A reliable recommendation is to raise fees by as much as 10%, but you should stage this increase gradually, so your patients have time to plan for it.
#3: Rethink Your Approach to Insurance
Many patients opt for PPO’s (Preferred Provider Organizations), as it allows them to apply their insurance to your services. But lately, many insurance companies are reimbursing dentists less than before, so if the majority of your business is PPO-based, you might want to rework your model so that a small portion of your revenue comes from those reimbursements. You might lose some patients by refusing to work with their insurance provider, but you should be able to make up for it by providing top-of-the-line care to full-fee patients.
With inflation anticipated to remain at around eight percent or more through 2022, it’s important to be mindful of the things you can do to combat it and keep your dental office’s revenue steadily growing. Following these three steps is a great way to do this and set yourself up for a financially successful future.
About Next Level Consultants
Mike Dinsio and Paula Quinn have helped hundreds of dentists start, buy, and grow their practices over the years. The two of them have comprehensive knowledge of the dental industry inside and out and are committed to providing an exceptional level of assistance with your practice’s needs. If you have any questions about keeping your practice profitable, don’t hesitate to reach out for the help you need.