In-house memberships: 5 reasons you can't afford not to offer one

I know that I said that there are five reasons, but they all stem from one fact:

Dental insurance is a terrible deal. For everyone. End of story.

Premiums are way too high. Coverage is way too low. The fee schedules are ridiculous. It takes forever to get paid. It's expensive to get paid.

The patient is always wondering: What's going on? What will be covered? I have to wait how long to get this done? And of course, everyone's favorite... How much is this going to cost?

All of that said, for many practices, dealing with insurance companies is a necessary evil. But why fight that battle more than you need to? 40% of people don't have dental insurance to begin with, and many of the people who have it could easily opt out during their next enrollment period if they had something better to choose. A well-constructed in-house membership plan is exactly that. And here are the five benefits to your practice:

1. Patient loyalty

Most patients like their dentist a heck of a lot more than their insurance company. Now imagine that you offer them a way to save money and improve their access to great dental care. Big win. Also, a membership with an annual payment creates a win-win between you and the patient. The patient gets a discount for paying for their care upfront. And you get a patient who is highly incentivized to find their way back into your chair in six months. They've already paid for that second cleaning/exam!

2. No Insurance to Bill

Insurance claims are the worst. Insurance companies like them because all they do all day long is play claim-denial ping-pong with your staff. It's fun for them. But not so much for you. Patients on membership plans have automated payments. They pay their membership fees on a regular basis (automated through Plum) and for any additional work, you simply set up your "members only" fee schedule and they pay at the time of service. And one other amazing secret to this: when you completely control the fee schedule, you can tell patients exactly what they're going to pay for any service. Patient's love that. No seriously, patients have been known to show affection in excess when financial transparency pops up in unexpected places. Give your patients the gift of financial certainty.

3. Patients are searching for your membership plan

Every last one of the large practice groups has a membership plan. There's not a single one that doesn't. Patients are looking for a dentist who has thought about their financial needs. A membership plan on your website and in your marketing plan will attract new (and profitable -- see #4 below) patients to your practice. Patients, as consumers, are used to subscription services. They're used to seeing monthly (Netflix) or annual (Amazon Prime) charges on their bank statements for the services that they value. Make no mistake, running a membership plan well takes some thought and a bit of discipline, but it's never been easier to help patients see the value of an ongoing arrangement with your practice.

4. Membership plan patients are profitable

This is the beauty of complete control. A membership plan can perform a range of functions within your practice strategy. You want to improve profitability but don't necessarily want to add patients? Great, build your plan so that it attracts existing fee-for-service patients or patients who are on unprofitable plans. Or maybe you really want to grow your practice. Wonderful, a competitively priced tier on your membership plan will help you to attract net new patients. You can also offer an account credit to your existing membership plan patients to incentivize them to refer their friends and family.

5. Recurring Revenue

Recurring revenue is the holy grail of any small business owner. Don't get me wrong, everybody likes to offer and provide big-ticket products and services. But as a base--recurring revenue lets you rest easy at night. Any practice that doesn't have a growing percentage of their practice on a membership plan is missing out on the many benefits of recurring revenue. Smooth cash flow, and an increased practice value are just the beginning.

There really is a slow-motion revolution taking place in dentistry. Patients and companies are starting to wake up to the total lack of value that exists in dental insurance and discount plan providers. A membership plan that is fully controlled by your practice creates value for you AND your patients by removing an unnecessary middleman. There's really no reason to wait to get started.