PARTICIPATE IN MANAGED CARE PLANS?

As I have mentioned previously, in my opinion, one of the finest dental practice management newsletters is the McGill Advisory (www.mcgilladvisory.com).  In the August 2012 issue, a “Readers’ Survey” about participation in managed care plans shares interesting results.  Survey information from 375 dentists shows that only 58% of respondents do NOT participate in managed care plans (MCPs) now VS 79% non-participants in 2001.  35% of respondents in 2012 reported that less than 20% of their collections come from MCPs VS 57% reporting under 20% of income from MCPs in 2001. 

And when questioned about the average fee discount they accept when dealing with MCP fees: 12% of participating dentists accepted a 6% – 10% discount; 31% accepted an 11% - 20% discount, 27% accepted a 21% - 30% discount; and 12% accepted a 31% - 40% discount. 

In order to make a sound decision about participation in one or more MCPs, doctors MUST analyze the impact of reduced fees on practice profits.  Participation in MCPs may help keep your chair full, but it will also decrease profits.  Make certain you understand all ramifications each MCP in which you participate will have on your practice and your income.