Same store growth and why dental practices should own access to their patients’ payment data with Brian Colao

Protecting patients’ privacy and their sensitive data has always been paramount in the dental industry. Providers are trusted with not only the patients’ protected health information, but also their financial records. Many providers use this data to make recurring transactions, like care subscriptions, smoother for the patients and to ensure they are always paid on time. But recently, a robust debate is unfolding about who truly owns this sensitive data: the healthcare provider or the credit card processor. 

Subscribili recently sat down with Brian Colao, a practicing attorney with more than twenty years’ experience working with DSOs. Brian shared his opinion that the practices should own access to patients’ sensitive data. 

Turning to same-store growth in the absence of mergers and acquisitions in dental. 

With rising interest rates, the past few years have seen a significant slowdown in mergers and acquisitions within the DSOs.. With M&A activity in decline, organizations have turned to alternative growth strategies, including same-store growth. 

Subscription-based services, which have gained traction over the last five years, are central to same-store growth strategy, since they allow practices to build regular and expected income. Subscription platforms often collect and store the patient’s credit card data, raising the question of ownership.

The complexity of healthcare data ownership.

Legally, the ownership of credit card data is often contested, in part because it is not considered health data in the traditional sense. When a dental practice partners with a subscription service, some processors assert that they retain ownership of the credit card information. This can create barriers and friction in the patient experience if a practice decides to terminate its contract. 

While a legal notice may be sufficient to end the agreement, the practice could lose access to all patient credit card data. As Brian stresses, this “doesn't help the patients and it certainly doesn't help the dental organization.” Losing access to the payment data which patients have already willingly shared with the practice often means reaching out to thousands of patients to collect their information again. That process is not only tedious for the practice, but also disruptive to patients.

The patient experience is paramount.

Patients value convenience and efficiency. The burden of contacting them to re-collect credit card data after transitioning services can lead to frustration, disengagement, and even fear that there are issues with the protection of their health data. 

In fact, with additional friction introduced, many patients may choose to cancel their memberships altogether, compounding the challenges for the practice. 

By retaining ownership of credit card information, practices can streamline transitions, maintain positive relationships with their patients, and provide a more reliable and predictable experience for patients.

Sharing the burden of regulatory compliance.

One of the key advantages of utilizing platforms like Subscribili is that they help relieve practices of the regulatory burdens associated with handling credit card data. As Brian explains, “The reason you would sign on with someone like Subscribili is that regulatory burden gets removed from you and gets put on Subscribili’s shoulders. They'll handle it for you. And they'll make sure you're compliant.”

By ensuring compliance, these services not only protect the practice but also earn patients’ trust. The focus should remain on providing dental care rather than navigating complex regulatory landscapes or tracking down patients for their credit card details.

Subscriptions create innovative solutions for dental care.

As the dental industry adapts to the realities of a changing economy and patient needs, the subscription model will play a crucial role. With approximately 60% of Americans not visiting the dentist, largely due to the absence of dental insurance or financial constraints. For those patients, dental subscription services offer a solution to get them into the chair without the burden of large, one-time care expenses. 

They make dental care accessible and manageable for all patients, while also driving growth and creating a predictable income for the practice.

Embracing ownership of your growth strategy–and patient’s data.

The dialogue around ownership of patient credit card data is not just a legal matter; it’s a strategic imperative for dental practices. By asserting ownership of this data, practices can enhance operational efficiency, improve patient experiences, and streamline transitions when changing service providers. 

As the industry continues to evolve, practices that prioritize ownership and the patient experience will be better positioned for sustained growth and success. Embracing subscription-based models like Subscribili not only facilitates compliance but also aligns with the future of dental care—making it easier for patients to access the services they need.