Podcast Summary: Power Hour Optometry – "How Membership Plans Drive 4.5X Higher Patient Spend: Proven Strategies with Jordan Comstock"

Title: Power Hour Optometry
Host: Eugene Schottzman
Guest: Jordan Comstock
Release Date: October 29, 2024
Episode: How Membership Plans Drive 4.5X Higher Patient Spend: Proven Strategies with Jordan Comstock
Description: In this episode, Eugene Schottzman interviews Jordan Comstock about leveraging membership plans to enhance patient loyalty and significantly increase revenue in optometry practices, drawing parallels from the dental industry.

Introduction

Eugene Schottzman opens the show by posing critical questions to the optometric community: How can practices reduce dependence on managed care, encourage patient return visits, and boost revenue per patient? The answer, as revealed through the conversation with Jordan Comstock, lies in implementing membership plans.

Notable Quote:

Eugene Schottzman [00:06]: "What is the solution to reducing dependence on managed care? Getting your patients to come back more often and generating more revenue per patient. According to my guest today, it’s membership plans in your optometry practice."

The Problem with Managed Care

Jordan Comstock discusses the challenges optometry and dental practices face with managed care and insurance. These include significant administrative burdens, reduced profit margins, and strained patient relationships due to the complexity and restrictions imposed by insurance companies.

Notable Quote:

Jordan Comstock [02:05]: "Managed care and insurance, there’s a lot of red tape. They hurt your cash flow, reduce your profit margins, and jeopardize your relationship with your patients."

Introduction to Membership Plans

Membership plans offer a direct-pay model where patients pay a monthly or yearly fee in exchange for specific benefits. This model bypasses traditional insurance complexities, fostering greater patient loyalty and increasing their overall spend.

Key Points:

• Monthly Subscription: Patients pay a fee (commonly around $25/month) for benefits like free exams, discounted lenses, and frame allowances.
• Revenue Increase: Membership patients can spend up to 4.5 times more annually compared to those on insurance plans.
• Patient Commitment: Members tend to be more proactive and committed to their healthcare needs.

Notable Quote:

Jordan Comstock [06:41]: "Think like Amazon Prime. Amazon’s membership plan creates loyalty and increases spending, similar to how your membership plan can work for your practice."

Data-Driven Insights

Jordan presents compelling data from the dental industry, illustrating that membership patients spend significantly more than those reliant on insurance. For instance, dental members spend approximately $2,200 annually versus $500 for insurance patients, highlighting a substantial revenue boost.

Notable Quote:

Jordan Comstock [08:35]: "Insurance patients spend about $500 a year on dental, but when they become members, they spend almost $2,200 in a year’s time."

Implementation Strategies

Implementing a membership plan involves strategic targeting and effective marketing:

• Target Audience: Focus on existing uninsured and inactive patients first, as they have established relationships with the practice.
• Marketing Integration: Utilize practice websites and external marketing channels to educate patients about the benefits of membership plans.
• Pricing Strategies: Tailor membership fees based on local income demographics to ensure affordability and maximize adoption.

Notable Quote:

Jordan Comstock [21:06]: "Start with existing uninsured and inactive patients within your practice. They already have relationships with you, making it easier to invite them to join your membership plan."

Patient Mindset and Behavior

Membership plans attract patients who are more dedicated to their healthcare, leading to higher utilization of services and increased spending. These patients view their membership as an investment in their health, contrasting with insurance patients who are often discount-driven and less committed.

Notable Quote:

Jordan Comstock [17:51]: "Membership patients are much more committed to their care and end up spending a lot more, like four and a half times more on the dental side."

Practical Examples and Plan Design

Jordan shares specific examples of successful membership plans, such as Total Vision Centers’ gold plan, which includes benefits like free annual exams, retinal screenings, and discounts on frames and lenses. He emphasizes the importance of creating clear, easy-to-understand plans that resonate with patients.

Notable Quote:

Jordan Comstock [06:41]: "Think like Amazon Prime. Amazon’s membership plan creates loyalty and increases spending, similar to how your membership plan can work for your practice."

Integration with Financing and Insurance

Membership plans can complement existing insurance by providing additional benefits and flexibility. Practices can still bill insurance for certain procedures while using memberships for preventive care and other services. Additionally, integrating financing options like CareCredit can further support patient spending.

Notable Quote:

Jordan Comstock [43:38]: "Membership plans are a direct pay model, not insurance. They provide predictable recurring revenue and can be easily integrated with financing options."

Overcoming Implementation Challenges

Implementing membership plans independently can be cumbersome due to the need for managing micro-payments and ensuring secure handling of patient data. Jordan recommends using specialized software platforms to streamline the process, handle recurring payments, and maintain compliance with security standards.

Notable Quote:

Jordan Comstock [34:35]: "Most practice management systems are not designed for membership plans, which is why our software platform is essential for scalable and easy management."

Success Stories and Data Insights

Jordan highlights that multi-location practices have successfully adopted membership plans, generating substantial revenue and maintaining high patient loyalty. These practices benefit from scalable systems and effective marketing strategies that amplify the benefits of membership plans across multiple locations.

Notable Quote:

Jordan Comstock [46:03]: "Some of our biggest dental practices generate multi-million dollars a year from membership fees, scaling effectively across locations."

Future Outlook

Jordan predicts a growing trend towards membership plans in optometry as more patients become aware of the benefits and practices recognize the financial advantages. He anticipates that membership plans will become a standard offering, reshaping the business model and patient expectations in the coming years.

Notable Quote:

Jordan Comstock [50:34]: "We're seeing more and more patients and practices adopting this model, and in the next three to four years, it will significantly change the optometry business landscape."

Conclusion

Membership plans present a transformative opportunity for optometry practices to enhance patient loyalty, increase revenue, and reduce reliance on traditional insurance models. By adopting a strategic approach to implementing these plans, practices can achieve sustainable growth and improved patient satisfaction.

Final Notable Quote:

Jordan Comstock [38:51]: "Membership patients are way more committed and able to spend more. It’s always a win-win with membership plans."

Key Takeaways

• Managed Care Challenges: High administrative costs and limited patient engagement make managed care less desirable.
• Membership Plan Advantages: Increased patient spend, enhanced loyalty, and predictable recurring revenue.
• Strategic Implementation: Focus on existing uninsured/inactive patients, tailor pricing to demographics, and utilize effective marketing channels.
• Data-Driven Success: Practices adopting membership plans see substantial revenue growth and improved patient retention.
• Future Trends: Membership plans are poised to become a standard in optometry, driven by patient demand and practice benefits.

This detailed summary captures the essence of the podcast episode, outlining the key discussions, insights, and actionable strategies shared by Jordan Comstock. By adopting membership plans, optometry practices can achieve significant financial growth and foster stronger patient relationships.