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Issue #12 - 1.30.07
Attrition Of Your Patient Base
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 types 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 numbers of lost patients when they determine their needs for new-patient flow. If you don’t believe me, here are several reasons that patients leave a practice that are indisputable and based on national data and statistics.
Patients Move
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:
- 23,468,000 moved within the same county
- 7,728,000 moved to a different county within the same state
- 7,628,000 moved to a different state and
- 1,269,000 moved to a different country
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 decreases consistently. 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.
Patients moving is a reality for any dental practice and just one household may 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.
Patients Die
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 I’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.
Patients Divorce
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 their community, the emotional distraction and change in financial means can keep those affected away from the dentist for long periods of time.
Patients File for Bankruptcy
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.
Patients Get Cancer
Each year in the United States approximately one half of one percent (.5%) of the population is diagnosed with some form of Cancer.
Patients Lose Jobs
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. Financial hardship, changes in dental insurance and shifting health-care priorities were all affected.
Patients Change Jobs
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.
Patients Lose Dental Insurance
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.
What does this mean to your dental practice each year?
The total number of patients moving out of your county or further (5.8%), combined with patients who die (1%) already total 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 dental care.
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