There are many reasons why membership programs are becoming increasingly popular. But ONE benefit that proves to hold incredible value for a dental practice’s bottom line – predictable recurring revenue.
Simple Math: Membership Programs = Predictable Recurring Revenue.
Let’s walk through examples that will illustrate the math that supports how your practice will generate predictable recurring revenue, add value to your practice, and help your patients be healthier in the long run.
Practice #1 has 3000 active patients. Of those active patients, 1500 patients are uninsured or poorly insured. Practice #1 implements an in-house dental membership program. They enroll 30% of the 1500 patients that are uninsured or inadequately insured for a total of 450 patient enrollments. Assuming the average monthly membership plan fee is $30 per month or $360 per year – Practice #1 will generate a predictable recurring revenue of $13,500 per month or $162,000 per year.
Practice #2 has 2000 inactive patients. Inactive for various reasons; cost, lack of insurance, or anxiety & apprehension. Practice #2 implements an in-house dental membership program. They enroll 30% of the 2000 inactive patients that have been avoiding their chairs for a total of 600 patient enrollments. Assuming the average monthly membership plan fee is $30 per month or $360 per year – Practice #2 will generate a predictable recurring revenue of $18,000 per month or $216,000 per year.
Practice #3 reactivated 300 patients. The patients are happy, more confident, and feel exceptionally comfortable in the care of their dental services. That said, each patient has accepted $1200 of proposed dental treatment. As a result, this has increased the yearly cash flow by $360,000.
It is necessary to implement safeguards to protect dental practices, their employees, and patients from unforeseen uncertainties. An easy way to do that is by implementing an in-house dental membership program. In doing so, generate recurring revenue, increase peace of mind, and strengthen practice stability through means of predictability.