Delta Dental, America’s largest dental insurance provider, has recently announced it will begin rolling out reduced fees for General Practice Premier providers. On July 1, 2021, Delta Dental will lower its Premier fees for endodontists, oral surgeons and periodontists.
Dental CPA Haden Werhan of Thomas Doll in Walnut Creek compared Delta Dental’s contracted fees in January 2020 to the new fees for oral surgeons and periodontists in Central Contra Costa County. According to Werhan, surgical fees are being reduced to 14% for oral surgeons and 21% for periodontists.
Maximize Your Dental Valuation
After practices re-opened in June 2020, a GP Premier dentist in Lafayette submitted a fee increase to Delta Dental. However, Delta Dental later lowered the dentist’s fees. Are you going to allow Delta Dental to continue to dictate how you operate your practice? Would you like to maximize the value of your practice?
You are positioned to maximize the value of your dental practice by going out-of-network if your practice:
- Enjoys a strong hygiene recall
- Employs strong team members
- Grades extremely well in customer service
- Your non-Delta Dental patients are billed at an inhouse fee schedule
For you to continue the standard of care your patients are accustomed to, it’s recommended to go out-of-network with Delta Dental. If not, your standard of care will change as you work harder in an effort to manage your overhead.
How much sharper can you make that pencil? How will you continue to maintain the compensation package you provide your team? How will you afford practice upgrades? How will you provide for your family? The market value of your practice shall decline.
It’s a no-brainer. You simply need to conquer that demon that exists in your head. By doing so, you will have made your dental practice something truly special and invaluable for your staff, your patients, yourself, and the next owner of your practice.
Don’t think this is only possible in high-income zip codes. I sold an out-of-network practice in June 2017 where the median household income in its zip code was $39,000. The dentist at this practice had attitude. He knew what his services were worth even before his dental practice appraisal. He worked 20 hours a week, took over 10 weeks off per year, had six days of hygiene, and collected $992,000 in 2016. His staff was truly happy knowing they worked in a special low-stress practice and were well-compensated compared to their colleagues in nearby practices. Approaching his four-year anniversary, the buyer is a happy practice owner and the staff are still there.
Start prepping for a dental valuation now. Engage experienced dental appraisal consultants to coach you and your staff for and through this event. Your Delta Dental patients will still receive their benefits. Initially, have two sets of fees: continue your fees for your patients but now as an out-of-network provider. It’s time to maximize the value of your dental practice.