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…

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