Do you know your hourly rate for Care Plan patients?
When we complete Full Care Plan audits we typically find hourly rates being generated is much lower than the principal dentist assumed. A practice looking to generate £220.00 per hour only produced £138.00 per hour from its Full Care patients.
Full Care income runs on the win on the swings and lose on the roundabouts principle, with some patients not attending the practice regularly but still content to pay into the scheme for peace of mind; whilst other patients are demanding and receive many hours of care.
It is important to establish the actual hourly rate being generated by your plan patients. Some practice management systems will report a summary of hours spent with plan patients.
Some plan providers provide generous family discounts; 5% for two members of the same family, 10% for three and 15% for four or more. In a recent audit we noted this was costing one practice £13,000.00 per year in lost profit. If you are going to use a plan provider that offers family discounts, this need to be factored into the fees for each band.
What to do:
1. Take a summary for a month in hours spent with plan patients and the net income earned. Divide net income by hours to establish hourly rate. This should include FTAs and white space let by late cancellations if possible, to factor in.
2. Work out cost of family discounts to your practice and factor this in to future fee reviews.