A lot of dental practice owners are getting very frustrated with the way the relationship with PPOs has evolved over the years. The most common complaints are large adjustments from their standard fees compounded by very modest annual increases to reimbursements.
As we are all aware, Question 2 in Massachusetts passed last year which requires dental insurance companies to now spend at least 83% of premiums received on patient expenses. We’ll have to see how that plays out with future reimbursements to in-network providers located in Mass.
The issue at hand is how individual practices owned by one or two dentists can compete long-term against corporate dentistry. One theory is that smaller practices who adopt a high-touch fee-for-service model will attract enough patients in their space to maintain a high level of profits while leaving the less desirable PPO patients to multi-office factories taking all the insurances and hiring less experienced associates to handle the work.
Please check out a 45-minute webinar presented by Dental Consultant Shelley Renee and Andrew Schwartz CPA available on our Video Library.