Gary Kadi describes how Natasha's dental practice was losing money on certain PPO plans. He recommends analyzing which plans are profitable by tracking patient count, production, and profit per visit, then dropping the unprofitable ones. Rising hygienist wages made the reassessment urgent.
Chapters
I want to tell you a quick story about Natasha, who is one of our managers, one of our practices, looking at her PPOs and insurance reimbursements, it was actually costing them money to have patients come in for treatment. I'm sure a lot of you have experienced that before. When you really look at the return on investment for being in Network and some of these PPOs, you're like, wow, I'm actually losing money here. Especially with the rising cost of team member compensation and what hygienists hourly wages are these days. So we want to assess which plans to drop and when and what to say to your patients and your team when you make the move. The last thing that we want to make sure that we have in place is the systems that are going to be important in this. Before cutting ties, doing what's called a profitability analysis, we looked at each PPO she was in, what percentage of her active patients were in each ppo, how many patients were on each of those plans, and what her adjusted production was versus what her actual profit per visit looked like.