Dentistry’s Dismal Financial Future…?

3M: Health Care Optimism, Cosmetic Dentistry Pessimism

I've been telling you recently how competitive the health care marketplace has gotten. It's so rough out there that some dentists are putting braces on sale. So what do the big dogs think of the current economic situation? Is there a silver lining?

Corporate giant 3M is finding that healthcare has remained more profitable than many of their other business sectors, accounting for about 20% of the company's total profit. It's the second-largest division at 3M in terms of producing revenue, and sales were actually up by 10% during the third quarter.

"Thank God we've got a healthcare business," joked 3M's Chief Financial Officer Patrick Campbell.

The company expects 2009 to be a tough year. One analyst predicts the company will see sales drop by 10%, but only anticipates a 3% reduction in their healthcare sales.

But 3M execs have singled out dentistry as an area of particular concern. They expect a significant drop in consumer demand for cosmetic dentistry and other discretionary dental expenses. (Interestingly, they expect the US dental market to be tighter than those overseas.) But since cosmetic dental products only account for about 6% of the company's healthcare division, they hope to remain relatively insulated.

But no dental practice is as diversified as 3M. We will live and die by the dental economy…

Read more about 3M

Dr Dunn

Question on dentistry and ins.
Since insurance companies have not increased the max/yr., and our fee sch has little to do with our contracted amounts. Do we get paid more out of network by the same insurance company(excluding co-pay)?
With the economy the way it is, even insurance companies we fight with often.. Is there a push to not accept those out dated fees and why not!! I can not have my patients pay in cash like the lectures recommend. They will just pick some one else on the plan… I think there needs to be an organized standing up to the ins companies on updating the max and fees that are resonable.
Please let me know where you have reviewed this.
Thank you Dr Dunn
Angie Rosado

Insurance companys pay less for procedures to out-of-network providers. The flip side to this is that as an out-of-network provider, you may charge your patients your UCR fees – you are not restricted to charging in-network fees. Patients are looking for cost cutting ways, just as we are, to survive our nation’s economic downturn. These belt-tightening times require dental practices to incorporate creative ways to survive such as differentiating (why patients PREFER to come to your practice) and doing more procedures at each appointment (reduces dental anxiety for your patient). Focus on your current patients, think out-of-the-box. I hope this helps.
Kyle DeLoach

Angie’s comments are well taken. Dentists should at least think about the reasons patients will continue to use their services when their insurance is not a preferred provider. Personal relationships built over time drive dental practices to success.

When total oral healthcare really means something to the dental profession AND to the general public, we will get major overhaul of the system. We might first place dentistry back where it really belongs – as an integral part of health care. Maybe then we can be creative with the proper role of dentistry.

Dentistry’s Dismal Financial Future…?

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