If you’ve been practicing for more than 14 years, you’ll remember how your practice changed in 2008 during the Great Recession. I was managing my husband’s practice then, and the economic downturn was frightening.
Practicing in downtown Chicago meant that most of our patients worked nearby but did not necessarily live close to our office. We watched as patient after patient was laid off from their current employer or had their benefits diminished or removed.
Our production dropped by over 30% the following year
Not only that, but more patients couldn’t pay their outstanding balance. Elective cosmetic procedures nearly stopped, and our hygiene schedule was no longer full.
I understand that some other practices didn’t experience this problem, at least to the degree we did. Practices in suburban and rural locations without much competition seemed to fare better than their counterparts in the larger cities. But still, it was not a fun time to be in dentistry.
A couple of years later, we implemented a dental savings plan in our office, and our uninsured patients began returning.
The DSP not only attracted back some of our M.I.A. patients, but it also attracted new ones and started our journey of earning recurring revenue in the practice.
The Fed just raised rates, and it’s expected to happen again soon. It doesn’t absolutely mean we are heading into a recession, but many experts predict that we will find ourselves there in the next two years.
If we had a dental savings plan in our practice BEFORE 2008, we would have fared much better.
We would have had more production during the most challenging times, and we would have the financial reassurance and safety with recurring revenue each month.
We don’t know what will happen over the next few years. However, setting up a dental savings plan now is the best way to recession-proof your practice, not during or after an economic crisis.
If you’re interested in having a discussion about your practice and how a dental savings plan can help protect you from the next recession, book a complimentary consult at www.dspcall.com