Inflation has become a challenge for businesses across industries, and dental practices are no exception. Rising costs for supplies, lab fees, and wages can strain your bottom line, making it necessary to adjust your fees. However, balancing operational costs with patient retention requires a thoughtful approach. Here are key steps to manage inflation without losing the trust and loyalty of your patients.

Understand Your Costs

Start by conducting a detailed cost analysis –  an important part of your practice’s annual housekeeping, click to review last week’s blog in full.

When looking at end of year financials, you should break down expenses into categories such as supplies, wages, lab fees, and overhead to identify where inflation has hit the hardest. Understanding these details allows you to set fair and justifiable adjustments.

Benchmark Against the Market

Research local competitors to see how your fees compare. Patients are more likely to accept increases if they align with what other practices charge. Ensure your fees remain competitive while covering rising costs. ePractice Manager offers a tool to compare your fees to the existing fees in your specific area. 

Communicate Transparently

Honesty is essential when discussing fee changes with patients. Let them know why the adjustments are necessary and how they will benefit from the same high-quality care. For example:
“We’ve experienced rising costs for supplies and operations, and to maintain the quality of care you deserve, we’ve adjusted our fees slightly.”

Highlight Value Over Cost

When addressing fee changes, emphasize the value patients receive. This could include advanced technology, highly trained staff, or enhanced services. Share patient testimonials or examples to reinforce the quality and care they can expect.

Offer Flexible Payment Options

Ease financial burdens by offering solutions like:

In-house membership plans for uninsured patients.

 Flexible financing options like CareCredit or early payment discounts.
 These options demonstrate a commitment to making dental care accessible.

Evaluate Insurance Partnerships

Review your contracts with insurance providers to ensure fair reimbursement rates. If some plans don’t align with your financial goals, consider renegotiating or limiting participation.

Train Your Team

Your staff often fields the first questions about fee changes. Equip them with clear, empathetic scripts and conduct role-playing exercises to build their confidence. A prepared team can reassure patients and address concerns effectively.

Monitor Patient Retention

Track patient feedback and retention rates after implementing changes. If you notice dissatisfaction or drop-offs, refine your communication strategies or consider offering additional perks to retain loyalty.

Adjusting fees during inflation is a necessary step to sustain your practice, but it doesn’t have to come at the expense of patient trust. By planning carefully, communicating clearly, and prioritizing value, you can navigate these changes while maintaining strong patient relationships. With the right approach, fee adjustments can be mutually beneficial for both your practice and your patients.