The Great Recession and a disappointing recovery have created a new mindset for patients. They are now putting off appointments, rejecting dental treatment, or shopping around for the best fees.
Today, practices that wish to increase production must present patients with convenient, flexible financing options. Levin Group recommends the following:
- 5% off for cash upfront on any case more than $300
- Acceptance of credit cards
- At least half the fee paid at the start of treatment and the remainder paid before final treatment begins
- Outside patient financing
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Why outside patient financing matters more than ever
An increasing number of patients will be interested in patient financing, a process whereby an outside finance company can approve the patient for a line of credit or a loan. These approvals can be achieved today within minutes by phone or by using the Internet with a reputable company, such as CareCredit®.
While many dentists do not think their practices need to offer outside patient financing, research indicates otherwise. According to a study by Hiner & Partners (1), 73% of patients surveyed indicated they felt their dental office was looking out for them if financing options were offered. Since patient trust is pivotal to case acceptance, such findings highlight the need for patient financing.
Some practices resist financing — but they do so to their own detriment. Remember that billing patients turns the dental practice into a bank and a collection agency. In today’s economy, that is undesirable. With bad credit at peak levels, dental practices cannot afford to take unnecessary financial risks or use the additional hours needed to collect overdue accounts.
Levin Group recommends that financing options be introduced as part of the basic case presentation to every patient. This is essential for two reasons. First, in the current economic environment, no dental practice can accurately predict who will or will not want to choose patient financing. Second, patients should be made aware of this option at the beginning of their decision-making process. Only then will patients have the opportunity to accept treatment, knowing that patient financing will make it affordable.
Conclusion
As every dentist knows, practice growth depends on case acceptance … and case acceptance begins with patient trust. The use of an outside patient financing company that understands the needs of dental offices effectively builds patient trust and, ultimately, case acceptance.
To learn how to run a more profitable, efficient and satisfying practice, visit the Levin Group Resource Center at www.levingroup.com/gp— a free online resource with tips, videos, and other valuable information. You can also connect with Levin Group on Facebook and Twitter (@Levin_Group) to learn strategies and share ideas.
Reference
1. Unpublished study by Hiner & Partners, Inc. for the Academy of Dental CPAs, 2009.
