Ep. 93: Top 3 Reasons Your Dental Office isn’t Making More Money

 

This week we bring in special guest Jeff Santone to discuss the three most common barriers to increasing practice revenues. Jeff speaks from his experience having run two highly successful offices and lecturing to, meeting with, and observing hundreds of doctors from all over the country on a monthly basis as MGE’s New Client Services Executive.

Topics:

:11 – Reason #1: Your case acceptance rate isn’t what you think it is

22:22 – Reason #2: Your fee schedule

40:17 – Reason #3: Not being a real executive of your practice

Links:

The MGE Communication & Sales Seminars - https://www.mgeonline.com/abc

Fees & Plans Analysis – https://www.mgeonline.com/fees-and-plans

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Questions From This Episode

What's the actual definition of case acceptance, and why do most doctors misjudge their own rate?

Accepted means the patient has agreed to the treatment and made real financial arrangements, paid, prepaid, or financed, not just verbally agreed they want it. Most doctors have an inflated sense of their own case acceptance because they're counting a patient saying yes as a win, even when that patient only ends up paying for a fraction of what was actually diagnosed. The real number, treatment presented versus treatment actually produced, typically lands between 28 and 35 percent industry-wide.

What percentage of doctors think they're good at sales, and how many actually have a genuine sales problem?

Roughly 80 percent of doctors rate themselves as good or better than average at case acceptance. In practice, close to all of them, effectively the vast majority, actually have a real, measurable sales problem, they simply haven't tracked the numbers that would reveal it. Most attribute low production to something else entirely, new patient volume, patients with a low dental IQ, or the wrong kind of marketing.

Why do so many practices keep their fees too low, and how does that actually happen?

Two separate issues stack on top of each other: the practice's actual private fee schedule is set too low to begin with, often set years ago and never meaningfully adjusted, and then heavy PPO participation discounts it further. Since every insurance company requires providers to submit their private fee schedule with each claim, insurers use that submitted data in aggregate to justify keeping reimbursement rates low, so a practice that never raises its base fees is quietly reinforcing its own low reimbursement over time.

Is it true that dropping insurance plans will cost a huge share of a practice's patients?

No, in most cases the loss tops out around 30 percent, and because PPO write-offs are often 40 percent or higher, a practice can lose 30 percent of patients in a dropped plan and still collect the same or more revenue at full fee, with meaningfully lower material, lab, and labor costs. The bigger risk most practices don't calculate is how much revenue they're already losing every year by staying in-network at a steep discount.

What's the third reason practices don't make more money, beyond sales and fees?

Not functioning as the actual executive of the practice. Many doctors hire people for key roles like finance or scheduling and simply assume the work is getting done correctly, without ever verifying it, largely because clinical training doesn't include any real business or management education. When production numbers stall, doctors often respond by adding more clinical skills, like implants or ortho, rather than addressing the actual operational or sales gap, which rarely moves the needle if the underlying case acceptance problem is never fixed.

Episode Transcript

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Ep. 94: Doubling Your New Patients by Using “Social Proof”

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Ep. 92: Are You Being Embezzled From? And How to Avoid It.