How Does Staying in Network Negatively Affect Your Net Worth?

This episode of “The Less Insurance Dependence Podcast” explores how staying in-network with PPO insurance can significantly impact a dental practice’s profitability and overall net worth. Gary Takacs and Naren Arulrajah discuss the hidden costs of insurance adjustments, which can amount to 45-50% of collections, reducing practice profitability and valuation. They illustrate this with real examples, emphasizing how becoming out-of-network can dramatically increase a practice’s profitability, making it more desirable and valuable in the market.

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• 00:03:49 – How Does Staying in Network Negatively Affect Your Net Worth?
• 00:06:24 – In other words, he’s running a $1.537 million practice even though the money that goes into his bank account is only $1 million.
• 00:15:26 – So another way to think about how this affects, you know, the value of your practice and how it affects your net worth.

Success comes from taking small, consistent steps towards reducing reliance on PPOs.

The main gripe about PPO plans is the 45% to 50% insurance adjustment you give them to provide patients.