Do you know your practice's patient attrition rate? As per industry experts, on an average, dental practice has more than 20% patient attrition yearly - one of the highest in healthcare. There are many reasons for having such a high attrition rate, like competition on cost of treatment, number of dentists in a small area and lack of distinction in services.
Attrition rate is often undermined by owners and management experts. In fact, most emphasis including marketing spend is allotted to new patient growth strategy. However, if these patients are not retained for repeat treatments then the growth of practice will be stagnated.
When we migrate the data on tab32 cloud dental software for an average dental practice with few years in business, there are 2,000 active patients (patients seen in less than 18 months) and roughly same number of inactive patients after subtracting non-patients, like insurance subscriber, guarantor, etc. The life-time-value (LTV) on this un-retained patients over these years equates to $2,000,000 (2,000 inactive patient times $1,000 LTV per lost patient) - yes, it is $2 million in LOST OPPORTUNITY! (Please refer my previous blog on LTV calculation)
Similarly, we can arrive with slightly more complicated math that modest improvement of 2% to 3% for 3 years in patient retention rate will increase the practice value by $100,000 considering valuation at 80% of practice revenue. And hence, it is equally important to also develop a strategy to increase patient retention rate.
I have extensively discussed in my previous blogs on how critical it is to provide a patient experience before, during and after the patient's visit. It is the patient experience which is going to decide if s/he is going to return to the practice.
There is also a misbelief among the owners that patient communication for appointment confirmations and reminders is a patient experience. Actually, it is just one small aspect of larger puzzle of patient experience. Meticulous planning is required to decrease the attrition rate by 2% to 3% along with integrated and transparent software to track patient relationships.
HelloPatient is the Patient Loyalty software which delivers consistent patient experience integrated transparently to better track patients within Dental EHR and assist in increasing patient retention.