Implementing a Dental Membership Program in 2023

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Implementing a Dental Membership Program in 2023
A dental membership program is like a
subscription service for your patients. It allows
patients to pay a set fee for a membership
package that includes annual cleanings, x-rays,
and preventative services. In addition, it
offers discounted elective or restorative care
procedures. We can think about it as a discounted
fee-for-service plan. Brad James, Manager of
Strategic Partnerships at Kleer, spoke with
Skytales Greg Mahoney about how to implement a
dental membership program in 2023 and beyond. You
can listen to the podcast or learn more below.
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Dental Membership Program Trends According to
James, membership programs in general have become
more popular. They work well for businesses that
need recurring customers in a competitive market.
Consider Disney adding Disney Pluswhich
increased their valuation as a publicly traded
company. Other companies like Costco,
HelloFresh, Peloton, and Amazon Prime also host
popular membership programs. Now, dentistry is
moving in the same direction. A dental membership
program offers more convenience for patients and
predictable cash flow for businesses. Dental
costs are rising rapidly for patients. In
response, dental membership plans are an
innovative way to make dental care more
affordable for those without insurance. Even
patients with insurance can benefit because
membership plans can combat sharply rising
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• co-pays and allow patients to pay directly (at a
  discount) for procedures that arent insured.
• James says that progressive practices are already
  targeting local employers with their membership
  program. Many employers may not offer dental
  benefits, but this option could change the game.
• How Do Dental Membership Plans Work?
• Many of our DSO clients have used a dental
  membership plan because they can attract new
  patients, keep them coming back into the office,
  and make their services more accessible.
• They can be leveraged as a marketing tactic, and
  its a win-win for patients.
• In addition, Byrdadatto recently shared another
  primary benefit these plans eliminate the need
  of a for-profit insurer as a middle-man in the
  transaction between the patient and their
  provider.
• James shares that Kleer tracks ROI data for
  dental clients whove implemented a dental
  membership program. The results are impressive
  patient case acceptance doubles or triples. And
  practices can bring in two to three times more
  revenue. But how?
• First, a membership program gets the patients
  foot in the door. And 75 of case acceptance
  stems from hygiene visits. Second, a program
  helps the dental team clearly communicate with
  patients. As patients are informed of transparent
  pricing, it leads to membership enrollment and
  trust.
• What Does a Dental Membership Program Typically
  Include?
• Heres an example of a typical membership plan
• Two routine dental cleanings with fluoride per
  year

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• All x-rays required for services included
• 15 discount on all other services and products
• Emergency exams included in membership fee
• Which Dental Practices Benefit From a Membership
  Plan?
• Practices with 10 or more patients who are
  out-of-network or without dental insurance
  benefits are best suited for a membership plan
  because they attract patients who know they
  would be paying out-of-pocket. As members,
  those patients stay in the practice for both
  included and discounted services.
• Dental membership plans work best for general
  dentists rather than specialists, pediatric
  dentists, or orthodontists. Thats because
  general dentists typically offer repeatable
  services, like hygiene appointments and X-rays,
  that patients can expect to need year after
  year.
• Dental Membership Program vs. Discount Plan
• Dental discount plans are more traditional, and
  typically offer a low annual fee that the
  patient pays. The patients appointments
  throughout the year will be discounted. But as
  James points out, it doesnt really change the
  patients behavior. They still have to pull out
  their wallet and pay before they leave.
• A membership plan has a higher price point, but
  it includes all preventative careno end-
  of-appointment payment is needed. And its fully
  customizable for each practice, whereas
  discounts are usually part of a network.

How to Implement a Successful Dental Membership
Program in Your Practice
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• If youre hoping to implement a dental membership
  plan in your practice, here are some things to
  consider
• Services offered
• To begin, consider what services to include in
  the plan. Practices who offer a membership plan
  often wrestle with how to provide benefits to
  patients who need perio maintenance services
  every three to four months. This can be addressed
  in two ways. First, by explaining to perio
  patients that two of their maintenance
  appointments would be included in the
  membership. The other two would be provided at
  the discount percentage the membership offers
  for all other procedures. The discounted
  appointments would be on the 2nd and 4th
  appointments, where the included appointments
  would be the 1st and 3rd appointments.
• The other option to address this issue is by
  adding a perio-specific membership with its
  own price.
• Discounted rate
• This rate should not be too aggressive as to give
  away more than necessary. It should be just
  enough to increase case acceptance and
  stickiness of the patient. This is typically
  accomplished with a 15-20 discount. Are there
  niche services your office provides that you
  wish to exclude from the membership plan? Be sure
  to note those in any digital or print media.
• Fee structure
• As DSO consultants, we prefer building the
  membership fees based on the number of household
  members on the plan. Heres one way to do it
• First, build the membership fee as approximately
  30 of the yearly UCR fees for a new patient
  seen in hygiene.

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• Second, if the total fees for a new patient to
  have two hygiene appointments with
• fluoride and all x-rays over a 12-month period
  was 825, 30 would be 247 for a single-person
  membership.
• Finally, for multi-person memberships,
  discounting each member by approximately
• 50 is a notable economy patients recognize. And,
  it helps them to see 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 your website, and even posts on social
  media.
• Details to include
• Membership application (where and how to apply)
• Benefits you provide
• Number of members per household
• Beginning and ending periods of membership

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• Make sure your team is up to speed. Theyll need
  to be able to explain to patients the perks of
  the program, why your practice is offering it,
  the price structure, and so on. It also helps if
  you can be open to team members input.
• Build a program thats measurable. A membership
  plan isnt just a nice-to- haveit can be a
  major revenue driver. Youll want to track things
  like enrollment, renewal, and case acceptance.
  Some practices have built their brand on a
  membership plan, and tracking KPIs can help a
  program succeed.
• If you run a DSO with multiple locations, your
  program needs to be scaleable. Its one thing to
  implement a membership program at one location,
  and another thing to bring it to all your
  locations. But the program should be consistent
  across the board, if possible.
• Dental Membership Regulations
• There are few regulations regarding dental
  membership programs, typically managed by the
  state insurance boards. This was due to lobbying
  by insurance companies to assure dentists were
  not creating their own insurance programs.
• Here are a few items to keep in mind
• First, check with your state insurance board to
  be sure you dont need to register your
  membership program. If you need to register, its
  usually a quick process. Provide the membership
  details, marketing materials, and location of
  your office(s). The board may charge a small fee
  when you submit your application.
• Regulations will focus on how the membership plan
  is administered, the flow of funds, and
  membership fees. To avoid issues in these areas,
  never refer to the membership program in written
  or conversational form as your offices
  insurance program. The membership fees
  collected are not premiums. There should never
  be a deductible for benefits of the
  membership. Mention of premiums or deductibles
  will be red flags for any insurance board audit.
• Lastly, if you prefer to outsource the creation,
  administration, and collection of membership
  fees, there are options. There are insurance
  companies who have created

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membership plans for dentists and other
healthcare environments. Or, there are also
vendors who are close to the dental industry who
can build the membership program on your behalf.
They will even train your team. Implement a
Membership Program with a DSO Consultant Dental
membership programs can add value because they
create stickiness with your patients. Skytale
Group helps group dental practices create more
value for their organization through strategic
consulting and financial advising. Learn more
about dental membership programs or explore how
the Skytale Group can help you grow your dental
empire. Contact us.