How do I measure what the cut costs?
Compare old and new fees for your most common codes and multiply by annual volume from that PPO. Focus on hygiene, exams, radiographs and common restorations, which make up most volume.
Also check whether your PPO participation is being leased to other networks. Patients may be using your PPO fees through networks you did not choose to join.
What are the main responses?
Negotiate with data, consider leaving low-paying networks, grow fee-for-service and membership patients, and control supply and lab costs.
Leaving a network is a big decision. Estimate how many patients may leave and how many would stay at your fees or join a membership plan.
Use the fee cut as a prompt to review all PPO contracts. Some may renew automatically on old terms, and a scheduled review each year keeps fees from drifting below what the practice needs.
Where does funding fit?
Funding can bridge the months during renegotiation or a network transition, and pay for a membership plan launch or marketing to fee-for-service patients.
Pair it with a clear plan and timeline. Funding without a plan only delays the impact.
| Response | Timeline | Risk |
|---|---|---|
| Negotiate | Months | May not succeed |
| Leave network | Months | Patient attrition |
| Membership plan | Weeks to launch | Slow enrollment |
| Cost control | Weeks | Limited impact |
Worked example: a fee cut and network change
A practice averaging $138,000 in monthly deposits faces a fee cut from its largest PPO and decides to drop a leased network, budgeting $30,000 to bridge a slower stretch and launch a membership plan. Using an illustrative factor rate of 1.22, $30,000 would mean $36,600 repaid over roughly 6 months: 26 weekly payments of about $1,408.
That works out to about $6,100 a month, or 4.4% of the $138,000 this business deposits monthly, and the total cost of the money is $6,600. Patients who stay at full fees or join the plan help replace the lost revenue over time.
For comparison, repaying the same $36,600 over 4 months would lift the monthly outlay to about $9,150, or 6.6% of deposits, so ask for both terms in writing; the shorter one frequently prices lower even though each payment is larger.
| Average monthly deposits | $138,000 |
|---|---|
| Amount funded | $30,000 |
| Factor rate (illustrative) | 1.22 |
| Total repaid | $36,600 |
| Cost of the funding | $6,600 |
| Term | about 6 months |
| Weekly payment (26 payments) | $1,408 |
| Payments as a share of deposits | 4.4% |
Who this fits
Usually a fit
- Practices with a plan after a fee cut
- Offices transitioning networks
- Owners launching alternatives to PPO revenue
When an office may want to wait
- Practices without a response plan
- Offices with reserves
- Startups without deposit history
What you’ll typically need
- Recent business bank statements
- PPO fee notice
- Practice details
Frequently asked questions
Can I negotiate with a PPO?
Many practices request reviews; results vary by market.
What is network leasing?
When your PPO contract allows other networks to use your fees.
Can funding cover a membership launch?
Yes; working capital can fund the launch.
What credit score do I need to fund a PPO transition?
For a PPO transition, owners with scores from 500 can be considered because recent deposits carry the most weight, and stronger credit usually earns a lower cost and a larger offer.
Fees cut?
Apply and bridge the transition.
Updated October 6, 2026