As a group, dentists have become more savvy in the area of practice management, but many are still too quick to accept some of the notions that have been perpetuated by dental magazines, by professional organizations, by the media, or by their dentist friends.

These myths and notions swirl through the dental community with surprising intensity and regularity. Sadly, many dentists fall victim to these myths and lose precious time and money chasing avenues that don't really exist.

Here is the third of five myths that pervade the practice of dentistry - and the reality.

Myth:

Fee-for-service dentistry is the only way to be successful.

Reality:

You can be successful with any type of practice: a fee-for-service (FFS) practice, an insurance-driven PPO practice, or a mix. The type of practice you run does not determine your income.

We know many PPO practices that do really well, despite receiving lower, contracted fees from insurance companies. And, we've seen many fee-for-service practices doing miserably, despite receiving full fees. A PPO practice that is run efficiently can easily outperform a poorly run FFS practice.

Building a FFS is more viable in markets that enjoy favorable demographics (i.e., high income areas and underserved areas where dentists are not as plentiful). In insurance-saturated regions (like most of the Northeast and California) and middle-income neighborhoods, the task is stiff.

In order to succeed as a FFS practice, several elements must be in place: First, you need to have a sophisticated and effective marketing plan that attracts an adequate volume of new patients. Second, your office must provide excellent customer service. Third, your clinical skills must have progressed to the point where you are able to do more procedures, so that you refer fewer patients out to specialists. Fourth, you and your staff must have the verbal skills to gain case acceptance.

In the absence of these four ingredients, it will be difficult to sustain production in a FFS practice. Many patients are likely to leave the office and seek out PPO or other managed care offices that have a lower fee structure. Your patient flow will also be reduced significantly and you are likely to see gaps in your schedule.

Regardless of whether you are predominantly FFS or PPO, it is wise to accept assignment of insurance. Not accepting assignment will work in areas with high income or if you've truly become one of the top doctors in the area. Given the costs of home ownership, automobiles, and children, the average family with two children and an annual household income of $50,000 has serious cash flow issues. Such families are likely to seek care at an office that is willing to accept insurance assignment, which reduces their cash outlay.

FFS is a laudable goal, but be sure to have the key elements in place before you take the plunge. In most cases, your best approach would be an orderly transition to FFS, in which you gradually elevate your marketing, increase staff talent, enhance customer service, improve case acceptance, and upgrade your clinical skills.

If our perspective strikes you as good sense, we invite you to request a confidential practice assessment so that we can quantify for you the hidden profit potential in your practice. It's free. Request a practice assessment.