Experienced dental consultants almost always agree that the patient attrition rate of an established practice runs between 10 and 12 percent each year, and that the attrition rate for patients in a new practice is in the 15 to 20 percent range. It happens to every dentist and you can’t stop it. People move and people die. You can have every mechanism in place to prevent some type of patient loss, but in many ways it’s not something you can control. Obviously, just to maintain status quo, you must attract at least as many new patients into your practice as you lose. Although the concept is simple, too many dentists don’t accurately assess the number of lost patients when they determine their needs for new-patient flow. If you don’t believe me, here are several indisputable reasons, based on national data and statistics, that patients leave a practice.

 

 

For years I’ve heard different statistics about the percentage of people that move each year. The estimates vary from a low of 10 percent to a high of 25 percent. Using the information provided by the U.S. Census Bureau, I’ll try to simplify and clarify any confusion. Out of a population of 282,556,000 people in 2003, 40,093,000 moved. That’s an overall percentage of 14.19 percent annually. These 40-plus-million people break down as follows:

The major moving activity takes place within the 18-34 year olds, with people in their 20s representing the highest concentration. Once people reach their 50s, their move rate is minimal. And in people over the age of 70, the move percentages are below 2 percent annually.

 

Couples with young children are the most likely to move a long distance. As people get older, the percentage who move will consistently decrease. There are two exceptions to this trend. When people reach age 65, there is an increase in both the percentage of moves, and distance of the move – this is likely due to retirement. When people reach age 85-plus, there is an increase in the percentage of moves, and a decrease in the distance of the move. This is possibly due to a move to an assisted living facility. A patient moving is a reality for any dental practice and just one household move usually will eliminate several patients. It is also important to remember that you’ll never know about all of them. In fact, half of the population moves without ever notifying the US Postal Service.

 

 

As with population statistics of people who move, statistics of people who die each year is reported differently from various sources. However, for these statistics we’ll rely on the National Center for Health statistics. Out of a population of 282,556,000 people, 2,517,000 will die each year. That’s nearly one percent annually. It might not sound like a lot but in some practices it can be as high as 20 patients each year.

 

 

In 2003, there were a total of 1,214,990 divorces granted in the US. According to national divorce statistics. The average family unit affected by divorce included 3.14 members. Therefore, the total number of immediate family members affected by divorce was 3,816,068, or 1.3 percent of the population that year. Even if all family members remain in the community, the emotional distraction and change in financial means can keep those affected away from the dentist for long periods of time.

 

 

Each year in the United States one half of one percent (.5%) of the population files for bankruptcy protection. Undoubtedly these Americans are more likely to put dental care at the bottom of their list of priorities.

 

 

Each year in the United States approximately one half of one percent (.5%) of the population is diagnosed with some form of Cancer. As mentioned before, this can influence an entire household of patients whose priorities have been suddenly forced to re-shift due to an unforeseen and unfortunate circumstance.

 

 

From January 2003 through December 2005 (three years), 3.8 million workers were displaced from jobs they had held for at least 3 years. An additional 4.3 million persons were displaced from jobs they had held for less than 3 years, for a combined total of 8.1 million from 2003-2005. On an annual basis the total was 2.7 million, or approximately 1% of the population. After factoring in children and spouses, approximately 2.5 percent of the population was affected by job loss in those years. At the very least, these circumstances can result in financial hardship, changes in dental insurance and shifting health-care priorities.

 

 

According to human resources experts working for Monster.com, “Nearly three-in-ten workers plan to look for new job opportunities in 2006 and 41 percent of the group plan to leave their companies by the end of 2007.” Such change has obvious impact on patient status.

 

 

As of 2005, only 55% of Americans under age 65 had dental insurance (mostly through their employers), according to the National Association of Dental Plans. Pressured by the soaring cost of health care, many companies are being forced to take a hard look at how they spend their limited health-care dollars. Dental insurance tops the list of benefits employers are looking to reduce or completely eliminate.

 

 

The total number of patients moving out of the county or further (5.8%), combined with patients who die (1%), already totals nearly 7%. With job loss and divorce the total easily exceeds 10%. This does not even begin to factor in all of the other issues that can influence a patient’s motivation to go to the dentist such as terminal illness, depression, drug abuse, alcoholism and mental illness, none of which can be controlled by great customer service or quality dental care.

 

 

Patient flow can be a major concern for a new or existing practice, and as shown above, just maintaining an existing patient level requires pro-active effort. To flourish, expand, and even maintain status quo, every practice should seek to create and implement an effective Internal and External Marketing plan. This will need to be built on a foundation of Branding and Identity.

 

 

It may seem like a huge distraction to have to worry about artsy matters relating to your practice’s image and identity when you are already consumed with matters of patient care, cash flow, and employee management. But, it is important to remember that, “Image is everything!” A polished and professional image is invaluable to a dental practice. When creating your “brand”, remember that today’s consumer is sophisticated and smart. Avoid the generic, and stay away from the tired and cliché that many dental practices incorporate into their logo and image scheme.

 

 

This aspect of marketing can incorporate such efforts as Direct Mail, Local Business Flyers, and (in some markets) Print-Ads. It is important to get your name out there. Everyone in close proximity to your practice should know who you are, what you’re about, and what offers you have in place to entice new patients. Any external marketing effort should consist of a solid group of offers and specials repetitively presented to a small and specifically targeted group in the immediate area surrounding your practice.

 

 

As the saying goes, “Customer service is dead.” Our society has become completely devoid of great experiences between businesses and customers. This lack of expectation, however, gives dentists an opportunity to exceed expectations and stand out as a bright light in a dark world of customer frustration. Patient loyalty is the goal. A loyal patient is one who will return to you, and refer new patients, regardless as to what else is out there. An Internal Marketing plan can incorporate any number of the following: Referral Brochures, Smile Art, effective On-Hold messaging, E-mail marketing, and a Patient Reward system.

 

 

Overall, the important thing is to make a commitment to marketing. A mediocre marketing program with a dedicated effort will always be more successful than an award-winning strategy that is executed halfheartedly. Dedication is the reason businesses and marketing efforts succeed. Show me a successful business of any kind and I will show you a dedication to marketing. When dentists start to see marketing like they see their dental supplies, they are heading in the right direction. When they start to see dental marketing like they see their retirement account, they are finally starting to get it. Marketing is not an unwarranted expense; it is a very necessary investment.