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Please note, the Springstone interview posted 2.11.09 has been revised as of 2.12.09. DentalBlogs apologizes for the errors and encourages subscribers and visitors to review the revised interview as follows.

You want case acceptance. You don’t want finances to stand in the way. In the current economy, people want to hold on to their cash, so patient financing is more important than ever, even for financially secure patients. In this interview, Mike Gilroy tells us what Springstone Patient Financing has to offer. Springstone’s niche is high-end dental financing. For affluent patients, how you present financial options could be life or death for case acceptance.

DB: When did Springstone enter the dental financing market, and what has company growth been like?
MG: We started in spring 2007. We set out to meet the needs of high-end dentistry. We only reached out to about 2000 dentists, and we’ve done quite well. Our loan volume grew over 500% this past year. Our targeted practices included LVI alumni, the ACE group, and Fellows/Diplomats with various dental societies. It’s been a viral launch to this point. We introduced the ability to finance up to $40K on our loans in October of 2007. Springstone was the first patient financing company to offer this large of a loan. Previously, $25k was the ceiling. Many practices jumped on the opportunity to recommend affordable financing for larger cases. We also offer a “Shared Savings” plan based on a practice’s use of our online process. Processing applications online saves the practice money. On larger cases, there are also additional discounts for cases over $5K, $8K, $10K, and $12K. Springstone offers fixed rates that are customized for the patient’s credit history and the length of the loan they choose, from 5.99% to 17.99%. Basing our interest rates on the patient’s credit history is like offering customer shoe sizes; we can offer a rate that best fits their situation. This optimizes the ability to approve patients for the plan. Our 7.99% fixed rate for 72 mos is particularly popular.

DB: How do Springstone’s rates and terms compare to those of the other leading dental financing companies?
MG: The credit card based patient financing programs tend to charge one interest rate for everyone (usually 11.99% or 13.99%) and handle differences in credit history by varying the size of the line of credit they offer. This really doesn’t work as well for the practice or the patient in terms of obtaining the care they need.

DB Why should a dentist work with Springstone instead of another patient financing plan?
MG: Springstone combines the best aspects of dental financing – quick approvals, attractive patient rates to optimize case acceptance, “Shared Savings” for the practice when using the online process and great customer service. We process 95% of our applications over the Internet, which saves dentists money because we extend the Shared Savings discount. Of course, our high ceiling of $40K is very attractive to dentists and patients alike.

DB: In the publication “Ten Essentials,” Springstone advises dentists about “what works and what pitfalls to avoid.” In short, tell us about the biggest pitfalls dentists fall victim to when it comes to patient financing.
MG: A variety of things. Think of the fundamentals. Who in the practice has the skill sets of a good communicator? Who can create comfort with numbers and financing to present payment options to the patients? Now consider, who currently presents your financing options? Doctor or staff? You can’t present high-dollar cases at the front desk. Privacy is important. With the right presentation technique and the right environment, you can move toward larger cases by presenting payment options beyond credit cards. Talk to patients about financing not at the front desk, but in the operatory or ideally in a consult area. It’s best to have the patient out of the treatment chair, sitting in a normal chair in a private, relaxed setting. Springstone caters to high-end dental practices with a more sophisticated staff and appropriate venues for discussing financial arrangements.

It’s also important to design payment options to work for patients; larger case fees require a broader range of financial options than smaller treatment fees. Imagine the point of view of the patient. They have money. The presenter has to be comfortable with this. Not everyone is looking for interest-free, short-term loans. Design your financing menu with this in mind, use scripting, and balance your promotion of interest-free options with extended plan payments. Larger cases may be better suited for long term, affordable financing. A patient may have cash on hand to pay for dental work, but he or she would rather hold on to the cash. Keep all the options in perspective.

DB: With the economic issues we face in the coming year, how can dentists leverage financing to increase case acceptance?
MG: It’s all about the financing menu and presentation. I left the dental market in 2004, then came back three years later, in 2007. It seems to me that no-interest financing is promoted too often and frequently in the wrong situations. Think about this – $100/mo at a low fixed rate may make more sense to a patient than $300/month with no interest. They are both great options to have available, but they should be offered without bias. “Which of these would work best for you?” is a phrase we encourage.

The dentist has to be hands on with the design of the practice’s payment options. The team must present well. You want customers to feel comfortable. Be clear, simple, and reassuring. Springstone works with practices to script their fee presentations. We know that patients process with eyes and ears. Using a written presentation form is always a good idea. A presenter should walk through the same options the same way each time and then let the patient choose what fits their needs. Improvement and confidence presenting payment options will come with practice.

DB: What have you found to be the best process for presenting treatment plans and financing?
MG: It is important to appreciate that you can’t judge a book by its cover. The payment option menu should be designed with something for everyone. Then present in an evenhanded way and let the patient choose. Segments of your clientele may include those that want to pay with cash, make larger, no-interest payments short term, or make smaller, more affordable payments long term. Design a menu that gives a complete range of payment options for qualified patients. Springstone offers standard templates for payment option menus. The insurance codes and treatment summaries from practice management software really aren’t right for presenting payment options. Once you’ve discussed the total cost with the patient, shift to the Springstone form or your own, well thought out menu and script. If assignment of insurance is accepted, calculate the balance a patient will be responsible for after insurance. Present affordable options based on that figure.

DB: How can a dentist encourage his financial coordinator or administrative team to present financial options confidently?
MG: Springstone’s forms help the team standardize their presentation of the financial options menu. You can customize them to your practice. Add signature lines, credit cards you accept, etc. Put the forms on your letterhead. Print them as NCR forms, if you prefer. Remember, move away from the treatment summary into the payment options menu. If you lead with the most affordable option, you typically position it in the most positive light. Start with the most affordable option to reduce “sticker shock,” then payment in full with a discount (perhaps with a distinction between cash and credit cards), and finally a no-interest option if that is to be offered. Also, keep in mind that no-interest plans apply retroactive interest at an interest rate in the 20’s if a payment is not paid on time. It is important to make sure patients understand how the programs work so they are not surprised later on.

DB: What is Springstone doing differently in 2009?
MG: In response to our customer’s request for one stop shopping, we’re launching a No-Interest Plan in March, with a pre-launch to current customers in mid-February. The no-interest plan will also offer Shared Savings with Internet use, as well as savings for larger loan amounts. Also, our plans will offer more patient friendly repayment terms, as the industry-standard retroactive interest penalty will not be triggered until a patient is 61 days late with payment. With most no-interest financing plans the penalties kick in much sooner, sometimes as little as one day late!

Our extended plan has very attractive fixed rates, a $40K ceiling, and our underwriters personally review the large loans – it’s not all computerized. Practices value this when financing large treatment fees. Though we are very automated, we value live service, as well. When you call the 800 number, three times out of four you’ll be speaking with Carol Maher, who has worked with us for over ten years. And rest assured, our people have years of experience. With Springstone, you will enjoy sensational service from a small, customer-focused company!

Springstone’s Shared Savings program is the first to give dentists a simple way to reduce their patient financing costs when using an online process. Plus, it rewards larger cases! It is the fresh new face in patient financing!

Visit Springstone Patient Financing online at http://www.springstoneplan.com or call 1-800-630-1663 for personal assistance.