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Mastering the Art of Financial Presentations

Presenting financial agreements is a crucial part of cash flow management in a dental practice. The way you present these agreements impacts patient perception and decision making, and by extension it also has the potential to impact practice revenue. In this article, we'll explore some essential tips to help you master the art of presenting financial agreements, ensuring a smooth and transparent process for both you and your patients.

Understanding the Journey: Marketing, Conversion, and Economics

The buying cycle of a patient passes through many stages. For a new patient, they first encounter your practice via some form of either internal or external marketing. External marketing is about generating traffic to your practice, while internal marketing seeks referrals and relationships. Conversion focuses on guiding patients towards better decision-making, and in these days of unlimited access to online information, patients need a dentist-guide more now than ever. The third stage is our focus in this article: practice economics – including how to discuss finances with patients.

It’s essential to view this process holistically because problems with marketing, conversion, or economics can disrupt the patient journey and interrupt the flow of cash into your practice. Our goal is to ensure that patients receive the information they need to make informed decisions about their dental care, at each stage of the process so that operationally we avoid dramatic ups and downs in business.

Why Is Mastering Financial Agreements Important?

Effective communication about finances is crucial for building trust and guiding patients towards the right treatment decisions. If we mishandle this aspect of the patient experience, it can lead to misunderstanding around value, buyer’s remorse, and broken appointments.

Five Key Reasons Why Your Team Should Mastering Financial Presentations

  • Building Trust:
    Simplifying financial discussions builds trust with patients, making the decision-making process easier for them.
  • Avoiding Surprises:
    Patients appreciate transparency. Clarity around finances helps prevent surprises by outlining treatment and treatment costs upfront.
  • Visualizing Finances:
    Presenting finances clearly helps patients visualize the costs associated with their treatment, facilitating better understanding and decision-making.
  • Building Confidence:
    Confidence in discussing finances instills confidence in patients. It shows that you're knowledgeable and comfortable with your fees, which is a massive positive influence on patients' decisions to proceed with treatment.
  • Preventing Payment Issues:
    Having a documented financial agreement that is mutually understood reduces the risk of payment disputes and limits accounts receivable.

Financial Agreements in Practice

Imagine recommending treatment to a patient who doesn’t have a clear understanding of the associated costs. In this scenario it is likely that there is increased confusion and frustration—for both the patient and the dental team members involved. Patients who are left wondering about cost are much less likely to book appointments, and when they do book, they are more likely to miss them.

Our financial agreement form, for example, is designed to be simple and easy to understand. It includes sections for the patient's name, a summary of the treatment plan, and a breakdown of the fees involved, including multiple ways to pay.

Patient’s Name & Presented by Name

Summary of Treatment Plan, in Simple

Payment Options Presented In Order

Financial options are much easier to understand when given a frame of reference. Guiding patients through a clearly laid-out form which shows the various payment options allows patients to visualize how they might fit recommended treatment into their budget. For regular everyday people dentistry often represents a significant cost, and the difference between $5,000 today and $500 a month for 10 months may be huge.

Avoiding Miscommunication and Disappointment

Miscommunication about finances can lead to negative experiences for both patients and team members. Patients may feel blindsided by unexpected costs, while practices may struggle with payment issues and broken appointments. But it’s all so easy to avoid by controlling the timing and the audience.

When it comes to timing and audience, finances should be presented only after a patient has decided whether or not they want the proposed solution. Conceptually this is very important as otherwise, their decision will be based on the cost not the value.

A simple yet often ignored guideline is to present finances to people who want the solution, and don’t present finances to people who don’t want the solution.

Don’t Prejudge Patients’ Ability To Pay.

Handling Common Financial Objections

"Another dentist is cheaper."

There are plenty of dentists out there who may offer lower prices than us, right? Many dentists might use cheaper labs, or lower quality materials. A reasonable response is to ask the patient if they are “willing to overlook our commitment to higher quality just to save a few dollars?"

If they say yes and acknowledge that price is the most important factor, then you know the patient might not be the most ideal for your practice, because you can’t drop your price every time someone doesn’t like it. Offering to match low prices is not a winning strategy as someone will always be willing to go lower. Where would you stop?

"Can I have a discount?"

The response to this common price objection is simple: "Certainly, when you pay in full today, we'll reduce the fee by 5% as a courtesy."

“I can’t afford it right now.”

This very reasonable objection is best handled in three parts:

  1. First, it should be empathetically acknowledged, as in “I understand if the cost is a concern.”
  2. Second, the patient should be offered the option to pay over time, if your office has that capability. “Would it make it easier to afford if we broke the total investment down into payments over time?”
  3. Third, if the patient declines your offer of flexible payments it is reasonable to ask if there’s a more appropriate time to revisit the discussion. “Would you like me to be in touch about this a few weeks or months from now? Or would you rather wait until your next hygiene appointment?”

The Risks of Unclear Financial Policies

When financial policies are unclear it inevitably leads to a decrease in treatment acceptance and patient retention. Patients need to feel confident in their ability to afford treatment, or they'll seek care elsewhere. And the last thing we want is for financial uncertainty to lead to negative reviews or missed appointments.

Summary:

Mastering the art of presenting financial agreements is essential for building a successful dental practice. By communicating clearly with patients, you can build trust, prevent misunderstandings, and enhance patient satisfaction as it relates to one of the most sensitive topics in the practice.

Throughout this article, we've emphasized the importance of clarity, transparency, and confidence in financial discussions. From understanding the buying cycle and the role of marketing and conversion, to explaining dental treatment economics and handling common objections with empathy, every aspect of presenting financial agreements contributes to the overall patient experience.

Remember, the goal is not just to secure payment but to guide patients towards the best possible treatment for their oral health needs. By prioritizing patient trust and satisfaction, you can ensure the long-term success and growth of your practice, with patients who understand and want the solutions you so expertly provide.

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