Why you need to raise your fees

0

Every year, dental practices face higher costs for supplies, materials, equipment, labor, service contracts, and more. And practices that participate in dental insurance plans will likely face reduced reimbursements. To help mitigate these cost increases and revenue decreases, I recommend that you consider increasing your fees. Annual fee increases allow a practice to keep up with inflation or gradually increase the profitability of the practice.

For those worried about raising their fees, keep in mind that most patients aren’t aware of your current fees, except for the more common ones, such as dental hygiene. As such, I suggest increasing your dental hygiene costs more slowly; however, other charges should be increased by at least the amount of the Consumer Goods Index, which is relevant when assessing inflation and rising costs.

I often meet new firms that have not increased their fees for several years. This is due to a variety of reasons, including fear of losing patients, setting rates based on insurance reimbursement levels, or simply not thinking about it. However, most good companies do an annual price or fee analysis and the easiest way to do this is to assess the practice’s overall profit margin.


More by Dr. Roger Levin

8 Steps to Maximize the Benefits of Adding a New Service
Never underestimate your hygienist


Today’s tough times

Dental practices are currently facing their biggest memory cost increases. This is likely due to current staffing challenges. When there is a shortage of anything, costs go up, and that goes for dental staff as well. Levin Group currently estimates that approximately 9-10% of dental hygienists have left the profession, and it will take time to rebuild the number of hygienists available for positions and practices today.

The 2021 Dental economyThe /Levin Group’s annual survey also found that 46% of firms are currently looking to hire a staff member. We estimate that dental staff and office labor costs could increase by 6-8%. This may be the number one factor for increasing fees on an annual basis. The only way to offset a steep increase in labor costs is to increase practice output, which is the first metric dental practices need to pay attention to in terms of short-term and long-term success. ‘company.

Keep in mind that one of the goals is to increase the production of the practice each year. This is especially important given that costs and inflation will increase each year, and if production reaches the right level, then the practice will achieve and maintain success. I will continue to provide recommendations on different ways to increase your practice’s production, and the annual fee increase is one of those standards.

Share.

About Author

Comments are closed.