Payment Plan Implementation in Dental Practice
Offering payment plans increases treatment acceptance for dental care that exceeds what patients can pay at once. Patients facing a $4,000 treatment estimate may decline or defer care, while the same treatment presented with $200 monthly payments becomes accessible. Payment plans bridge the gap between what patients need and what they can afford immediately.
Internal payment plans require infrastructure that many practices lack. Securely storing card information, processing scheduled payments automatically, handling failed transactions, and maintaining accurate account balances demands systems designed for recurring billing rather than simple point-of-sale transactions.
Third-party patient financing offers an alternative to internal payment plans but involves different tradeoffs. Financing companies handle collections and assume non-payment risk, but charge fees that reduce your effective revenue. Understanding both options helps you choose the right approach for your practice and patients.
Collection rates on payment plans vary significantly based on implementation. Plans with automatic recurring charges have higher completion rates than those requiring patient-initiated payments. The systems and workflows you establish when setting up plans determine long-term collection success.
Common Payment Plan Challenges
Declined recurring payments create collection friction that compounds over time. When a card declines in month three of a twelve-month plan, you need immediate notification, automatic retry capability, and patient communication workflows. Without these systems, small issues become large outstanding balances.
Card expiration during long payment plans requires proactive management. Patients on two-year orthodontic payment plans will experience card expirations. Systems that notify patients before expiration and facilitate credential updates prevent payment interruptions.
Balance tracking accuracy becomes critical with payment plans. When patients make additional payments, receive insurance reimbursement, or modify treatment plans, their remaining balances change. Manual tracking invites errors that create patient disputes and collection problems.
Staff time for payment plan management affects practice efficiency. Without automation, staff spend significant time processing payments, chasing declined charges, and reconciling accounts. This administrative burden takes resources from patient care and practice growth activities.
How Goodlane Group Supports Payment Plan Programs
We help dental practices implement payment plan capabilities that work reliably. This includes processor selection with strong recurring billing features, integration with practice management systems, and workflow design that minimizes administrative burden while maximizing collection rates.
For practices considering third-party patient financing, we help evaluate options and costs. Understanding effective financing costs compared to internal payment plan costs helps you make informed decisions about which approach fits your practice economics.
Our statement analysis examines recurring payment success rates and identifies opportunities for improvement. Many practices don't realize how much revenue they lose to failed recurring payments that better systems could recover.
We advise on PCI compliance requirements for practices storing card information for payment plans. Proper tokenization and secure storage protect your practice from data breach liability while maintaining the convenience patients expect.