Making plans for a sale?
Featured Products Promotional FeaturesPosted by: Dental Design 4th November 2023
How maintenance plans can boost the value of your practice
Maintenance plans can play a vital role in boosting the value of a dental practice. These plans can be a win-win for both the practice and its patients. By offering these plans, dental practices not only ensure regular and continuous care for their patients but also establish a steady and predictable revenue stream.
Indeed, Dental Elite’s recent Benchmarking Report highlights just this: a buyer favourably views plan income because it offers a secure revenue stream, thereby increasing the saleability of the practice.
It found when comparing fee per item and plan income, plan income often makes up a smaller proportion of total revenue. According to Dental Elite data, 71.98% of private practices currently have patient plans in place, with the bulk being maintenance plans.
A maintenance plan is a great way for patients to be seen quickly and an affordable alternative during a time of NHS crisis and long waiting lists. Due to the discount frequently given to maintenance plan patients, which can be as high as 20%, there is still some resistance from private practices to implement a scheme. This resistance may be mostly due to the patient base and demographic of the business. If patients are content to continue paying on a fee-per-item basis, then this can preserve income long-term. However, it’s important to think about the future exit plan and how saleable the practice is. The discount also doesn’t have to be 20%, but there does need to be some incentive for a patient to sign up to the plan.
Maintenance plans encourage patient loyalty and retention. By offering comprehensive and affordable preventive care, dental practices can help patients maintain optimal oral health. Patients who sign up for maintenance plans are more likely to visit the practice regularly for routine check-ups and cleanings.[i] This not only allows dentists to catch any potential issues early on but also fosters a strong patient-provider relationship.
As patients experience the benefits of consistent and preventive care, they are more likely to continue coming back to the same dental practice for their future dental needs. And when patients are satisfied with their healthcare providers, they are more likely to recommend them to others.[ii] It’s a win-win. Maintenance plans can help create a loyal patient base, which is essential for the long-term success and value of a dental practice. They also promote a culture of prevention, which aligns with the growing demand for personalised and patient-centric healthcare.[iii] Practices that are in tune with their patients’ expectations can only prosper.
As previously highlighted, these plans provide a reliable and steady revenue stream for dental practices. Unlike traditional fee-for-service models, maintenance plans offer patients the opportunity to pay a monthly or annual fee for preventive care services. This predictable income allows dental practices to better forecast their cash flow and plan for future investments. With a steady revenue stream in place, practices can afford to consider investing in state-of-the-art equipment, attract high-quality staff, and provide superior patient experiences – all of which contribute to increasing the value of the practice.
Additionally, maintenance plans can attract new patients and differentiate a dental practice from its competitors. During the current cost-of-living crisis, some patients are facing difficult decisions when it comes to paying for dental care.[iv] Therefore, dental practices that promote affordable dental plans may prove more attractive. Marketing is one of the key management skills required in dentistry and its importance should not be under-valued.[v] These plans not only offer financial benefits but also demonstrate the practice’s commitment to preventive care and patient well-being. Such an approach can give a practice a competitive edge and therefore increase its value in the eyes of potential buyers.
By fostering patient loyalty, providing a reliable revenue stream and attracting new patients, maintenance plans create a strong foundation for long-term success. Dental practices that implement maintenance plans demonstrate their commitment to patient care and their ability to adapt to changing market needs. As a result, the value of these practices increases, positioning them as thriving and sustainable businesses, all of which goes a very long way to making a business much more attractive to a potential buyer. Contact the Dental Elite team today to discover what we can do for you and your practice.
For more information contact Dental Elite. Visit
www.dentalelite.co.uk, email info@dentalelite.co.uk or call 01788 545 900
Luke Moore Bio:
Luke Moore is one of the Founders and Directors of Dental Elite and has overseen well in excess of 750 practice sales and valuations. With over 19 years working in the dental industry, Luke has extensive knowledge in both dental practice transfers and recruitment and understands the complexities of NHS and Private practices.
[i] Denplan Consumer Oral Health Survey 2022 https://www.denplan.co.uk/the-core/industry-and-company-news/consumer-oral-health-survey-2022 [Accessed September 2023]
[ii] Szabó RM, Buzás N, Braunitzer G, Shedlin MG, Antal MÁ. Factors Influencing Patient Satisfaction and Loyalty as Perceived by Dentists and Their Patients. Dentistry Journal. 2023; 11(9):203. https://doi.org/10.3390/dj11090203 [Accessed September 2023]
[iii] NHS England, https://www.england.nhs.uk/integrated-care-pioneers/resources/patient-care/ [Accessed September 2023]
[iv] Cope, A., Chestnutt, I. The implications of a cost-of-living crisis for oral health and dental care. Br Dent J 234, 501–504 (2023). https://doi.org/10.1038/s41415-023-5685-0
[v] Ashford, R., Blinkhorn, A. Marketing dental care to the reluctant patient. Br Dent J 186, 436–441 (1999). https://doi.org/10.1038/sj.bdj.4800135 [Accessed September 2023]
