Tag: Insurance

PPO or Not to PPO….that is the question

After assessing numerous practices, one of the first questions I’m asked is “Should I stay in network with the insurance companies.” There is not a simple yes or no answer. There are three options. Fee for Service….no participation with any insurance company; In network with all insurance companies (PPO’s) or Partial enrollment. As some of the insurance companies are lowering their reimbursement which will affect your bottom line, it will be necessary to seriously consider your options. 

Fee for Service: Full fee and full payment. No write-offs and no negotiating. Patients come to see you, you diagnose, patients decide on treatment and you get paid 100% of fees charged. Sounds ideal but there are factors that must be taken into consideration. Your location, your competition, your patient base, patient demographics, timing, your fees and your vision for the practice,

PPO – sign up with every PPO….work twice as hard for half the money, use double the supplies and double the time in sterilization because you have to see double the patients just to meet your goals. Creates a chaotic atmosphere not to mention the lousy taste it leaves in your mouth. Pun intended. 

You can decide on ‘Partial participation’ with the insurance companies that have reasonable reimbursement. 

So how do you decide and where do you start? Know your numbers and know the demographics of your patient base. If you don’t know how to do it or what to assess, get someone to help you. I recently completed a ‘virtual assessment’ for a dentist who wants to drop a major insurance company that he felt “75% of my patients have”. 

After I completed his virtual assessment we were able to determine the true percentage of patients with the various insurance companies he was in network with. We also created a plan for when his practice can support dropping the major insurance company!! (who is once again lowering their reimbursement to the dentist!) Through the assessment, I determined there was major problems with their computer recare system, their TRUE active patient base along with other issues that would ‘kill’ their practice if he just dropped it. However, we were able to put a plan together to slowly drop the PPO’s over a certain amount of time so that it would not financially impact his practice or the patient base. This was a dream come true as he has not felt good about going to work for a long time…it wasn’t fun and he had lost his passion for dentistry. Teaching the administrative team effective scheduling techniques allowed the practice to limit the write-offs on a daily basis. Over time, this adds up to thousands of dollars. Through my assessment, I was able to look at the significant discounts, write-offs, freebies, family rates and adjustments given to the ‘fee for service’ patients that was also making a significant impact on the bottom line. 

Do your due diligence…know what you can do today to make an impact and have a plan to eliminate over time. 95% of the dental practices I work with complain about the write-offs, the PPO’s etc. but no one is doing anything to rectify the situation. It all starts with a plan. Stop complaining about all your write-offs and adjustments and take your practice back.

Nancy completes virtual and ‘on-site’ practice assessments to address your specific concerns about insurance participation, internal team stress, leadership concerns, incentives, policies, hygiene programs/liability, treatment coordinating, productive scheduling vs. a busy schedule, communication within the team and any other concerns you may have. You have to assess your patients in order to provide a short and long term treatment plan. Why aren’t you assessing your practice to have a short and long term business plan for the practice? Email us your concerns and do something about it. nancy@Klassolutions.com or info@klassolutions.com

#KLASSolutions #PPO #insurances #DeltaDental #Assessment #Dentist #dentalpractice #FeeforService

Commercial Property Insurance Tax-Deductions: Everything You Need to Know

By Stephen Robert Morse

As the actress Helen Mirren said, “I don’t believe that if you do good, good things will happen. Everything is completely accidental and random. Sometimes bad things happen to very good people and sometimes good things happen to bad people.”

Whether you’re a good person or not, bad things can potentially happen to you… and to your commercial property. For example, you may wake up in the morning to discover there was a fire at your commercial property in the middle of the night. You may be away on vacation when you learn the eye of a hurricane is heading straight toward your business. Or you may sit down to dinner when you hear that a vehicle was stolen from your property’s parking lot.

Even while there is great reward in being a commercial property owner, these are the inherent risks of property ownership. Due of the risks involved, many businesses prefer to rent their space rather than own it. This means that, for those who are willing to bear the risk of owning property, renting out commercial property can reap serious benefits.

Economic and Tax Implications of Commercial Property Insurance
One way to mitigate the risk of commercial property ownership is to procure commercial property insurance. Fire, theft and natural disasters have the potential to quickly wipe out gains made by your business. Commercial property insurance can provide you with more than just piece of mind; it can help you retain your hard-earned rental income rather than having to pay it out in lawsuits or rebuilding fees.
Protections Offered by Commercial Property Insurance
Commercial property insurance protects you when you rent your property for use by a third party. While your tenants are allowed to legally inhabit your property, you as the owner are still liable in many situations if and when things go wrong.

Though at times overlooked by commercial landlords, commercial property insurance is necessary. Why? Very few contracts with tenants explicitly say that the owner isn’t liable in the event of a problem. Below are specific protections offered:

Indemnity period. This is the amount of time you would be able to claim back lost rent in the event that a fire or natural disaster makes your property uninhabitable by your tenants.
Damage from natural disasters. In the event that your property falls in line with the path of a hurricane or tornado, you as the property owner are typically responsible for such expenses as debris removal, building demolition, and even rebuilding costs. Few people think such situations will happen to them, but you needn’t look much farther than the major storms that have hit the U.S. in recent years causing massive amounts of property loss to understand that this threat is real: 2005’s Hurricane Katrina caused an inflation-adjusted economic loss of $119 billion and 2012’s Hurricane Sandy cost an inflation-adjusted economic loss of $77.3 billion.
Tenant law suits. Commercial property insurance may also offer protection if you need to sue a tenant who has not paid rent or has destroyed your property with malicious intent.
Injury liability. Such insurance can also cover if, for instance, a visitor slips on ice in your parking lot, requires expensive surgery and subsequently sues you.
Break-ins. If someone forcibly enters your building, causing damage and stealing property, you’ll want to have a commercial property insurance policy on your side.
Additional Benefits: Greetings, Tax Man!
More good news: commercial property insurance is tax deductible. Yes, you read that correctly. By protecting yourself and your property, you can write this expense off to save on taxes.

No matter where you live or where your property is located, you can take advantage of many federal tax deductions available to commercial property owners across the U.S. For example, you can deduct the premiums you pay for nearly every insurance option for your commercial rental activity, including:

Fire, theft and flood insurance
Landlord liability insurance.
The cost of health and workers’ compensation plans for any employees who work on premises.
A major benefit of commercial property insurance is that it allows you to combine the many types of insurance covered into a single, cost-effective plan that can help you get far better deals than if you purchased your insurance plans needed for your property a piecemeal manner.

Furthermore, in the event that your commercial property is adversely affected by a rare weather event like a flood, you can obtain a tax deduction for all or part of your loss. These losses are typically called casualty losses, so it is unlikely that you will bear a substantial burden when all is said and done.

Next Steps
If you already own commercial property, double check that have ample insurance to cover you if a hazardous event occurs. And if you already have commercial property insurance, consider rolling multiple insurance vehicles into one plan so you can save money and receive more comprehensive offerings.

Contact me and I can help!

What Kind of Insurance Protection Do You Need?

Author:Scott Ferguson

Seeing your business swept away by floodwaters or burned to the ground by a wildfire would be devastating. Having the right insurance coverage based on your specific risks and business needs can make the difference between getting back in business in a few days, versus weeks, months, or possibly never. But many small businesses discover they aren’t adequately insured only after they’ve suffered a loss.

Part of your emergency plan should include a thorough insurance review with your insurance professional. Together, you can discuss the potential risks to your business and determine if you have the right coverage, and the right amount of coverage, to keep things running in a worst-case scenario. Here are a few policies to consider depending on your specific weather risks:

Business income insurance. Every for-profit business lives on receivables. Even if your income stops, your expenses keep going and you’ll quickly find yourself underwater. Loss of income is often more serious than direct property damage, and it’s one of the main reasons most businesses fail to reopen after a serious loss. Business Income insurance helps replace lost revenues and covers continuing expenses, including payroll, along with extra expenses necessary to keep your business going.
Business property insurance. Business property insurance can help protect your physical assets, including buildings, equipment, furniture, and product inventory. You can even add protection for accounts receivable records plus computers and media, among other assets.
Flood insurance. Did you know that your property or business owner’s policy probably does not cover flood-related losses? If floods are high on your potential risk list, consider commercial flood insurance offered through the National Flood Insurance Program. It can protect your business from hurricanes, rain, storm surges, and snow melts.
Earthquake insurance. Like flood coverage, most general property policies don’t cover earthquake damage. You may need to purchase a separate earthquake policy to augment your other property coverage. Be aware that earthquake policies generally have a large deductible of 10%-15% of the overall policy limit in states where earthquake risk is highest, such as California, Oregon and Washington. There are other aspects of earthquake policies that differ from typical property policies, so check with your insurance professional to pick the coverages that are best for your business.