Is Dropping a PPO Part of Your New Year’s Resolution?

Recent data from the American Dental Association (ADA) shows that about 33% of dental offices have dropped at least one PPO contract this year. The leading reason? A staggering 98% of respondents cited poor reimbursements as the primary factor.

If you're part of the remaining 67% still holding on to PPO contracts, you might be asking yourself: What’s stopping me? Often, fear of patient attrition or uncertainty about the process can hold practices back. But as running a PPO-based practice becomes increasingly challenging, it may be time to reevaluate your approach.

Here are some actionable tips if you’re considering dropping a PPO plan:

1. Prepare Thoughtfully

The worst time to drop a PPO is when you’re at your breaking point. Impulsive decisions often lead to chaos, including losing a significant number of patients. Instead, take a strategic approach:

• Identify which PPO plans to drop first.
• Assess the potential impact on your patient base.
• Develop a clear communication plan to inform your patients.

Preparation ensures a smoother transition and minimizes disruptions to your practice.

2. Communicate Effectively

While sending letters is helpful, face-to-face conversations with your patients are even more impactful. If you’re dropping a large insurer, be proactive and transparent about your reasons. Remember, patients are often as frustrated as you are with insurance reimbursements. They deserve to know that your decision is aimed at improving the quality of care you provide—not penalizing them. Frame the conversation around your commitment to their dental health and emphasize the benefits of continuing their care with your practice.

3. Offer Alternatives

When patients hear “out-of-network,” they may immediately worry about unpredictable costs and up-front payments. This can lead to attrition, even among your loyal patients. To address this concern, offer alternatives that provide clarity and flexibility, such as:

• Membership plans with predictable monthly fees.
• Payment plans to make visits more budget friendly.
• Detailed cost estimates to maintain trust and transparency.

Making these changes will help patients feel more comfortable transitioning with you and can strengthen your relationships long-term.

Dropping a PPO doesn’t have to be overwhelming or detrimental to your practice. With careful planning, clear communication, and patient-focused solutions, you can take control of your financial health and provide the care your patients deserve.

Ready to take the first step? EmpowerDDS can help. Schedule a demo with us today to build a strategic plan for reducing your PPO dependence and growing your practice with confidence!