Result Driven Impact

Dental Protection Plan

Background

Clear Lake Dental Group (CLDG) was established in 2007 and is located in the state of Nevada just outside of Reno. The practice operates a medium-sized dental practice specializing in general family dentistry with three practicing dentists.

  • INDUSTRY- Dental
  • SPECIFIC- General Family Dentistry
  • ANNUAL GROSS REVENUE- $1.2 Million
  • OWNER STRUCTURE- PLLC with three owners
  • EMPLOYEES- 8
dental protection plan

Risk Description

Due to the increase of competition in the marketplace, along with increased costs, business profits are eroding. The practice owners decide that offering a dental warranty would help add value to the dental services and aid in customer retention.

Business Situation

  • CLDG has been a highly profitable practice and is looking to expand.
  • Customer loyalty has also declined over recent years due to a reduction of health care benefits and low price competitors.
  • CLDG is the top rated and most trusted dental practice in their area and has maintained the majority of their market share for this reason.
  • CLDG is currently working on implementing a warranty program in order to differentiate themselves in the market

Solution

SRA implemented the DPP for CLDG. The funds they would have set aside to cover their implied dental warranties would be considered profit to CLDG and taxed accordingly. SRA’s program allowed the owners to place money into their protection plan using tax efficiencies only available through 831(b).

DETAILS OF THE DENTAL PROTECTION PLAN

  • The DPP is a program developed specifically for the dental industry.
  • For business owners, the DPP offers a defined warranty and administrative staff to implement the program without disrupting day-to-day operations.
  • The cost of the protection plan will be included in the price of the procedure

Key Takeaways

BENEFITS TO CLEAR LAKE DENTAL GROUP & OWNERS

  • The program was implemented quickly and efficiently allowing CLDG to operate without any interruption to business.
  • The Dental Protection Plan company was structured to mirror the ownership of CLDG.
  • CLDG feels the added value that the program offers will bring in new customers and retain existing ones.
  • Supply chain improvements were made when CLDG discovered a certain dental procedure accounted for a majority of their claims.
  • CLDG has the ability to mitigate other risks in the future through the use of their Dental Protection Plan.

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