By Christy Ratcliff CPA, CVA, Partner
Your payment structure could affect your practice transition more than you think.
Insurance-based versus fee-for-service – it’s one of the most complex and consequential dynamics in dentistry. In this episode, Christy and Charles compare these payment structures, outlining how each model impacts patient flow, risk, owner autonomy, and operational responsibilities involved in taking over an insurance or fee-for-service practice. Ultimately, they share these insights with the practice transition process in mind, showing what buyers should consider during a transition and how owners can strategically shift from one model to the other.
WHO'S THIS EPISODE FOR?
- Aspiring practice owners
- Established practice owners
- Owners looking to sell
KEY TAKEAWAYS
- PPO and FFS models both come with risks and benefits
- There isn’t a one-size-fits-all solution for all practices
- Considering payment structure is important during a practice transition
- Delta Premier contracts may not be transferable to new owners
- PPO models typically involve a steadier new patient flow
- FFS models tend to involve stronger patient relationships and specialized care
QUESTIONS ANSWERED IN THIS EPISODE
What payment structure is the most beneficial?
It depends on your unique situation. Many factors must be considered, such as practice location, the seller’s relationships with the patients, the practice’s financial health, and the stability of new patient flow.
What reasons would I have for changing my payment structure?
You may consider changing from PPO to FFS if you want to provide a more highly personalized patient experience, want more control over pricing, or want to reduce the administrative burden that comes with navigating insurances. Although less common, some owners may change from FFS to PPO or add some PPO options if they’re in need of more patients and cash flow.
ADDITIONAL RESOURCES
ABOUT THE SHOW
Transition Talk Podcast
NDP managing partners Charles Loretto and Christy Ratcliff combine their expertise to share guidance, tips, and real-life scenarios revolving around healthcare and dental practice transitions. From school and residency to practice ownership and retirement, this podcast provides insight into every career stage.
Have any questions or ideas for Charles and Christy? Reach out here.
ABOUT THE HOSTS
Charles founded NDP in 2005 after working in the dental field for Cain Watters & Associates (CWA), realizing additional support was needed for both new dentists and established owners. In addition to his role at NDP, Charles is an Investment Advisor Representative and partner of CWA where he leads the New Client Services team. Using his extensive experience, Charles speaks on a local, regional, and national stage to help dentists across the country navigate their career journeys.
Christy Ratcliff is the Managing Partner of NDP, playing a key role in the ongoing evolution of the firm’s valuation and consulting service lines, helping healthcare professionals navigate complex practice transitions with clarity and confidence. A Certified Valuation Analyst and CPA, Christy is deeply passionate about education and is a frequent speaker at regional and national dental meetings. In addition to her work at NDP, in 2020, Christy co-founded 7 Pillars, an advisory firm focused on transitions in the DSO space.