Dental Tribune U.S. Edition

Dental Tribune U.S. Edition | April 2012A22 Patient payment model increases practice revenue DentalBanc has designed a solution to help dentists offer monthly payment op- tions to their patients without creating extra work for their staff. As an alterna- tive to third-party financing, DentalBanc has saved practices thousands of dollars each year that would otherwise be lost to these third-party companies. Not just another accounts receivable program Through the use of DentalBanc’s credit recommendations, practices can easily identify patients who represent a low fi- nancial risk and offer those patients the right payment plan. This helps practices build an accounts receivable portfolio without giving up 10 percent of their treatment fee. In addition, DentalBanc fully manages the payment plan, boast- ing an impressive 99 percent on-time rate, while leaving the staff free to pro- vide excellent dental care. Are patients really price-shopping? Let’s face it, patient trends are changing. Whitening used to be just for the super- wealthy, and braces were just for teenag- ers. Today, the average American adult is willing to spend thousands of dollars to improve his or her smile. These changes in patient trends have enabled dental professionals to increase revenues by offering a wide variety of costly treatments to a new generation of appearance-conscious consumers. Just as patient care preferences are changing, so are patient payment preferences. Cost-conscious patients are exploring their options, literally “price shopping” costly dental procedures by obtaining several quotes and researching payment options offered by various providers. As a result, consumers with good credit rat- ings expect no-interest financing — even on their dental treatments. Finally, an alternative to third-party financing While some finance companies boast a “12 months, no interest” payment plan, they are charging practices an adminis- trative fee as high as 10 percent for these plans. Meanwhile, patients, believing they are receiving an interest-free op- tion, find that only one missed payment results in retroactive interest as high as 23.99 percent. Third-party finance com- panies have done their homework and depend upon a calculated percentage of patients failing to meet their obligation of paying on time, thereby incurring usurious levels of interest. Boost profits by 10 percent or more Many practices feel these plans are detri- mental and run counter to the relation- ship of trust being built with the patient. By offering a DentalBanc payment plan to patients with a low credit risk, prac- tices can increase profits by 10 percent or more, maintain patient relationships and have the security that they will re- ceive payment for services rendered. Here’s how it works Step 1: DentalBanc provides a credit rec- ommendation to help an office deter- mine the risk associated with each pa- tient. There is no lengthy credit report to analyze. Instead, you receive a credit lev- el along with a payment plan recommen- dation. DentalBanc’s credit inquiry does not affect the patient’s credit score. With DentalBanc, a practice can determine the risk associated with each patient and of- fer the appropriate payment plan. Step 2: Once a practice decides to offer payment terms to a patient, DentalBanc will completely manage those accounts. Payments are drafted directly from the patient’s checking account or credit card. The funds are deposited directly into the practice’s bank account each month. If the payment fails for any reason, Dental- Banc contacts the patient and schedules the secondary draft. Patients can even check their balance and print receipts di- rectly from DentalBanc’s secure website. Step 3: DentalBanc will deposit collect- ed payments, four times per month, into the practice’s bank account and provide a deposit statement report with complete details for payment posting. Take action Consider your current payment options. Are you being flexible with your low- credit risk patients by offering them a true no-interest payment plan? Do you have an accounts receivable program? Are you collecting 100 percent of the treatment fees? Are you working with a professional payment management company that offers reliable, on-time payments so your office staff isn’t over- whelmed with managing customer ac- counts and collecting late payments? If you answered “No” to any of these questions, there is a solution. To learn more about how DentalBanc can work for your practice, call (888) 758- 0584. (Source: DentalBanc) iNdustry NEWs DentalBanc provides alternative to third-party financing, improves case acceptance rates DentalBanc Director of Sales and Marketing Marla Merritt Photo/ Provided by DentalBanc Another bubble? By David Keator There is an old adage, “Those who ig- nore history are destined to repeat it.” So let’s journey through a couple of the major milestones in the market since 1982. I’ve chosen 1982 because that was the time the market became the subject of daily media chatter. Paul Voelker was the chairman of the Federal Reserve at that time, and in August 1982 he lowered interest rates. This caused the stock market to take off. From that point onward, the market was a hot topic. One of the first “derivatives” that emerged after that time was in the form of Portfolio Insurance. The idea was at- tractive. Essentially it was a program sold to institutions and large investors that “sold” their securities if the market hit certain levels. The large investors and in- stitutions loved the idea. This “product” became so lucrative to Wall Street that it was repackaged and sold to smaller investors. Everyone started buying into this protection mechanism. In hind- sight, this idea failed to recognize that it could become self-fulfilling. If the mar- ket started to fall, then the “insurance” ” See BUBBLE, page A25Photo/Copyright Mike Monahan, www.dreamstime.com ‘Just as patient care preferences are changing, so are patient payment preferences.’