PPO Strategy

Three Reasons Why Going Out of Network with PPO Plans is a Wise Move

The modern business environment has created unprecedented conditions that make exiting PPO networks strategically prudent. Market disruption, rising costs, and changing patient preferences align perfectly to make now the ideal time to transition toward a thriving, independent practice.

Pause and Reflect: Why Now Matters

The pandemic created an unexpected opportunity: a pause button on the relentless merry-go-round of practice operations. This interruption allowed countless dentists to reflect on fundamental questions they'd been too busy to ask.

Is what I'm doing leading me to the results I want? For most dentists, the answer involves three core desires:

Here's the uncomfortable truth: PPO participation undermines all three. When 44% of your contracted fees disappear, when insurance companies dictate treatment options, and when you're forced to see double the patients just to maintain profitability, none of these goals become attainable.

A foundational principle: The dentist can't care more about their patients' health than the patients care about their own health. PPO plans amplify this problem by allowing insurance to dictate patient choices.

Three Economic Reasons to Go Out-of-Network Today

Reason #1: Companies Are Dropping Dental Coverage

Significant economic shifts have accelerated the elimination of employer dental benefits. When companies reduce employee benefits packages, those previously insured patients must find new dental homes. This creates an immediate opportunity.

Consider the numbers: Roughly 10 million jobs have not returned to pre-pandemic levels. Many of those positions came with dental insurance. As this gap persists, an expanding population of uninsured patients emerges—patients who don't ask two problematic questions:

This population represents your practice's future growth engine. When patients lack insurance, they evaluate dentists based on trust, quality, and genuine care—not network status. This shift in decision-making criteria strongly favors practices that have already exited PPO networks.

Reason #2: Contracted Fees Will Continue Declining

Insurance companies operate on a straightforward business model: maintain profit margins regardless of revenue changes. When employers demand reduced premiums, insurance companies don't cut executive salaries or reduce operational expenses. Instead, they reduce dentist reimbursements.

The math is brutal:

Meanwhile, your actual costs continue rising. Personal protective equipment expenses remain high. Labor costs increase. Operational overhead climbs. But insurance reimbursement only moves in one direction: downward.

If you think contracted fees are unsustainable now, the economic environment guarantees they'll worsen. Every insurance company to whom you contracted is under margin pressure, and dentists absorb those losses.

Reason #3: Patients Want Trusted Care Providers

Recent disruptions have fundamentally shifted patient preferences. The ubiquitous focus on healthcare quality during extended uncertainty created heightened awareness of provider relationships.

Patients increasingly ask: "Do I know, like, and trust this healthcare provider?" This question now carries more weight than ever before. The days of patients selecting dentists based on a billboard or network participation are waning.

This cultural shift creates a strategic advantage for practices that:

Out-of-network practices naturally excel at these relationship-building activities because they're not forced to prioritize insurance processing over patient connection. You can actually spend time getting to know your patients.

The Strategic Convergence

These three forces align to create a powerful strategic window. In business, timing matters tremendously. The optimal moment to execute a strategy is when external conditions support your objectives.

Right now:

Remaining Insurance-Friendly While Going Out-of-Network

A critical misconception: going out-of-network means becoming hostile to insurance. This misunderstanding keeps many dentists trapped in PPO participation.

The reality is far different. Out-of-network practices can:

The difference is philosophical: you're patient-friendly rather than insurance-company-friendly. You help patients use their insurance benefits optimally, but you're not dictated to by insurance restrictions or fee schedules.

The Path Forward

The current environment presents a rare combination of favorable conditions. Economic pressures, demographic shifts, and cultural preferences all point toward the same conclusion: now is the time to build the thriving, profitable, personally satisfying practice you envisioned.

Dentists who execute this transition now position themselves at the forefront of a growing movement toward independent, patient-centered dental practices. Those who wait risk watching the window of opportunity close as more dentists recognize the same strategic advantage.

Ready to Build Your Thriving Practice?

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Free Resource: The Out-of-Network Transition Checklist

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This article is based on the Less Insurance Dependence Podcast. For deeper exploration, listen to the podcast.

Naren Arulrajah

Reviewed by

Naren Arulrajah

CEO & Founder, Ekwa Marketing

Naren Arulrajah is the CEO and Founder of Ekwa Marketing, a 300-person dental marketing agency that has helped hundreds of practices grow through SEO, reputation management, and digital strategy. A published author of three books on dental marketing, contributor to Dentistry IQ, co-host of the Thriving Dentist Show and the Less Insurance Dependence Podcast, and a member of the Academy of Dental Management Consultants. He has spent 19 years focused exclusively on helping dental practices succeed online.

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