There are few things that induce anxiety in a dentist or practice owner more than seeing a hole in the schedule. Whether it’s from a no-show or a cancellation, that hole is a loss of income, an underutilization of resources, and a missed opportunity for a patient who really wants to get in. Like Kirk says, “a no-show isn’t zero profit—it’s negative profit,” so taking steps to prevent no-shows will have a noticeable impact on your practice.
Luckily, there’s a simple strategy you can implement that will make a real difference: a reservation fee!
Think about it—the biggest impact on your practice comes from high-production cancellations, so by introducing a fee to reserve those high-production appointments, you’re helping patients commit to keeping them. Some dentists like to use a reservation fee for every appointment, but I don’t think it’s particularly relevant for appointments where you haven’t set aside a large chunk of time, like general recare, periodontal maintenance, or preventative visits. I think it’s wise to instead have a threshold for when to implement a reservation fee, so consider your higher-production appointments:
Your high-production procedures may vary, but in general, for anything at or above this level it’s going to be worth charging a reservation fee. Even if it’s just a $20 fee, you’re ensuring that the patient has some skin in the game; after all, $20 is more than nothing at all. I also think that the reservation fee should be refundable and go toward their treatment, especially if it’s for simple dentistry. However, when it’s something that requires significant cost, such as developing provisionals, then you can consider making the fee non-refundable just so you aren’t losing out completely in the event of a no-show or cancellation. In that situation, I certainly recommend a fee that’s more than $20!
What does this sound like when you put it in practice? “To reserve this two-hour visit, we request a reservation fee that will go toward your treatment. Most of our patients take care of their patient portion in full, while others opt to pay half now and half at the time of service. Which works better for you?” If they’re not willing to contribute a reservation fee, then it’s a pretty big tell that they don’t truly value or plan on attending the appointment.
When you implement a reservation fee, you’re encouraging commitment and follow-through on the patient’s end, but you’re also showing the patient that your time is valuable. If they see that you value what you do, then they’re going to value it as well!
For more help in reducing your cancellations, check out this FREE tool! And to learn more about ACT and how we can help you build a Better Practice and a Better Life, reach out to Gina!