The average dental office fees are at a very low 56th percentile of their respective zip code… DON’T LET THIS BE YOU!
Did you increase your fees this year?
Your Burkhart Practice Support Team tracks data trends collected from practices throughout the year. In 2017, we learned the average dental office’s fees are at a very low, 56th percentile of their respective zip code.
Inflation, as measured by the CPI (Consumer Price Index) increased by 2.2% in 2017. Chances are, your overhead has also increased. In light of this, Practice Booster and McGill Advisory both recommend an annual fee increase of 3% for 2018.
Realize an Immediate and Substantial Impact!
Let’s run through the math to fully understand the impact of moving your fees to a healthy percentile. Keep in mind, if you are not currently in the 80th percentile, your overhead will appear higher than the accepted healthy range as well.
The higher your fees, the lower your percentage of overhead will be relative to your total collections. A change from the 60th to the 80th percentile may only mean a small difference to your patient. However, when you multiply the frequency of each code used in your practice, you will quickly see the potential impact even a small increase can have.
Now, what would happen if ALL your fees were optimized AND increased each year?
Take a look at the long-term impact of this small change*
*McGill Advisory, Nov 2017
These incremental increases, along with the power of compounding, have a tremendous impact on your practice profitability. $9 million over 30 years if you commit to an annual 3% increase.
Common Myth: Your thoughts may naturally go to the idea you can’t realize these profits due to your participation with managed care plans. Banish those thoughts with this positive perspective:
- You have private pay patients in your practice (conservatively 20%)
- You have out of network patients
- 87% of the population consist of dual income families,leading to more dual-coverage opportunities. (prb.org)
- Well positioned fees fuel your negotiating power with managed care companies
- Annual increases will raise the fee profile of your area, increasing the chances of higher reimbursements in the future
- Healthy fees make your practice more attractive during transitions
Plan to adjust your fees now. Burkhart’s Practice Support Team welcomes the opportunity to support the health of your practice in 2018 – and beyond. We are committed to your practice’s business success.
Your success is our success. Please reach out to us anytime.
Learn more, visit the Practice Support Team page, call 1.800.665.5323 or email us at PracticeSupportTeam@BurkhartDental.com
Category: Practice Consulting
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