Why a squat practice and a dental membership plan go hand in hand
Thinking of taking the plunge and setting up a squat practice? Practice Plan Regional Support Manager, Connie Dunlop, explains why introducing a membership plan is a smart move.
Over recent years, squat practices have gained in popularity. The large numbers of patients struggling to gain access to dental treatment has helped alleviate some of the perceived risk among dentists about the prospect of starting from scratch.
Although one of the many benefits of setting up a squat is not having to pay for the goodwill value of a practice, the setup costs are still considerable and need to be recouped. Consequently, every decision you make must be strategic to attract and retain patients and ensure financial sustainability.
Which is why introducing a membership plan can be an important move that offers a host of benefits for both your patients and your business.
Benefits of a plan
If you are an Associate striking out and opening your first practice, then you may well have come across membership plans before. However, you may not have appreciated all the benefits a plan can offer a practice.
In simple terms plans allow patients to spread the cost of their oral health care over a period of months. At Practice Plan we can tailor plans to suit your practice’s needs but typically they include oral health examinations, hygiene appointments, X-rays, and sometimes emergency visits. Some practices also choose to offer discount off treatments. They are aimed at encouraging preventive care and developing long-term relationships between patients and the practice.
Builds patient loyalty from the word go
A membership plan helps you create a loyal patient base by offering value and consistency. In a squat practice, patient retention is just as important as acquisition. Patients who commit to a monthly plan are more likely to return for regular appointments, follow through with treatment plans, and recommend your practice to others.
This loyalty is always valuable to a business but especially so in the early stages of your practice when word-of-mouth and reputation are important for building patient numbers.
Predictable monthly income
One of the biggest challenges for a business, but for a new practice in particular, is managing cash flow. As the business has no history, it can be difficult to forecast income with any semblance of accuracy. Having a membership plan provides predictable, recurring revenue that can help take some of the guesswork out of forecasting.
Regular monthly payments from members gives you a clearer picture of your baseline income, making it easier to plan staffing, marketing, and investment in equipment or technology.
Encourages preventive care
Practices report that their plan members are more likely to attend their regular hygiene and oral health examinations than pay-as-you-go patients. As these appointments have already been covered by their monthly membership fee, unlike pay-as-you-go patients, there’s no saving to be made by postponing visits to the surgery, so they’re more likely to turn up.
Which is probably why, anecdotally, our practices report that their plan patients generally have better oral health than their other patients. Also, as patients are attending the practice more frequently, any emerging problems can be nipped in the bud so more invasive treatments can often be avoided.
By having a membership plan you can position your practice as one that prioritises prevention. This can help build trust and demonstrate a commitment to long-term patient wellbeing which can be an important point of difference when you’re just finding your feet in a competitive market.
Makes private dentistry more accessible
In some areas of the country access to NHS dental care is, at best limited, or in some case non-existent meaning private dentistry is the only option. Offering a membership plan can ease the financial burden of patients in these types of areas.
By spreading the cost of care over monthly payments, patients can budget for their oral healthcare and are more likely to perceive private dentistry as affordable and manageable. This is particularly helpful to a fledgling practice as patients often cite cost as a barrier to accessing private dental services. A well-structured plan can help overcome that objection.
Simplifies pricing
Trust is essential when building rapport with patients and rapport is the basis of a long-term relationship with patients. One way to help cement this is to have transparent pricing. Being subjected to additional ‘hidden costs’ is a surefire way to damage a new dentist/patient relationship.
Having a membership plan simplifies your fee structure and makes it easier to communicate the value of your services. Patients appreciate knowing exactly what they’re paying for and what they can expect to receive in return.
Having clarity around pricing can help reduce anxiety around costs and improve treatment uptake rates, especially for patients who are new to private dentistry.
Increases practice value
As any accountant will tell you, you need to have an exit strategy as soon as you start your business as this will inform many of the decisions you make about the way you structure and run your business. Having a strong base of membership patients enhances the value of your practice. So, if your plan is to sell or bring in partners further down the line, the revenue from a membership plan is a key indicator of the financial health and state of patient loyalty of the practice.
Not only that, but membership plans can also be used as a marketing tool to attract new patients. You may choose to offer a “founder member” discount or other exclusive benefits for early adopters which can generate a buzz and incentivise sign-ups.
Customisation and flexibility
As already mentioned, at Practice Plan, we can tailor your membership plans to suit the needs of your practice and your patients. Whether you want to introduce plans for children, implants or just general maintenance plans, they can be structured to your specification. This flexibility ensures that your plan remains suitable for and appealing to a diverse patient base. You can also adjust your plan pricing and benefits as your practice grows, ensuring that your membership offering evolves alongside your business.
Digital plan management
Many plan providers offer the facility for practices to manage the running of their plans via a digital platform. This makes signing up, changes to patient details and other routine tasks quick and easy and reduces the admin burden on your staff.
Some, such as Practice Plan, also offer real-time management information about plan performance helping practice owners and management to get an accurate view of how their plan contributes to the business’ revenue. In the early days of a new business this type of information is especially helpful to help guide forecasting and planning.
Helps build firm foundations
Launching a squat practice is a bold move, and success depends on building strong foundations. A dental membership plan can be one of the strongest building blocks for a new practice. Whether you choose to become a plan only practice, as some new owners choose to do, or offer it as part of a wider pricing strategy, it offers much more than just a guaranteed monthly income. A dental membership plan can also be a relationship-building tool and a growth accelerator.
Introducing a membership plan from the outset is a statement of intent. You are positioning your practice as patient-focused, forward-thinking, and financially resilient. That can be a powerful combination. Regardless of your squat’s location, bustling city or rural community, a well-designed membership plan can help convert first-time visitors into lifelong patients, something that will give your squat practice the best possible start.
This year, Practice Plan celebrates 30 years of welcoming practices into the family, helping them to grow profitable businesses through the introduction of practice-branded membership plans. So, if you’re looking to introduce a plan and would like a provider who will hold your hand through the process whilst moving at a pace that’s right for you, why not start the conversation with Practice Plan, on 01691 684165, or for more information visit the Practice Plan website.
About the author
Connie Dunlop has been a Regional Support Manager for the Practice Plan Group for more than eight years and has a background in business and marketing. She also holds an MBA in Business Strategy and Leadership.
Comments are closed here.