Dentists’ Greatest Fear – Raising Fees (video)

Dental feesMost dentists have been avoiding fee increases, this survey found, even though regular fee increases are a basic principle of effective dental management.

But in a recession, dentists fear they’ll alienate patients if they raise dental fees.

“Same fees, more dental marketing…” said one orthodontist.

Read more: Dentists and Dental Practices May Have To Raise Fees

Dental Associates vs. Hygienists: Who’s More Profitable?

Examine the Bottom Line When Considering a Hygienist and/or Associate
Editorial by Jim Du Molin

Have you ever wondered what your real profit is on your hygienists or dental associates? Have you ever wondered whether a hygienist can be more profitable to you than an associate? If you have an extra operatory available, would it be more profitable to hire a dental associate or another hygienist?

In last week’s column, I explained how you can earn a profit of $493 per day from a hygienist who produces $962. How much would an associate have to produce to yield the same profit? Here again, the Comparative Value Analysis is helpful.

Comparative Value of One Day’s Production

Provider: — Hygienists — Associate
Mary Tim Goal Equiv.
(Commission) (Salary) (Per op)
Production $700 $700 $962 $1,176
Collections (96%) 672 672 924 1,129
Less…variable costs (9%) – 63 – 63 – 87 – 106
…commission (41%) – 288 n/a – 482
…salary n/a – 288 – 313 n/a
…employer taxes (10%) – 29 – 29 – 31 – 48
Profit $292 $292 $493 $493

Let’s assume that you would pay the dental associate 41% of his or her production. (In reality, we normally recommend that the associate be paid a percentage of his collections. However, we will keep things simple here.)

Further assume that the associate would pay his or her own lab fees and assistant, and that you would not have to add any front desk staff to handle the associate’s patients and scheduling.

Your net profit rate on the associate would be as follows:

Net Profit Rate on Associate

Collections 96%
Less: variable costs – 9%
Less: commission – 41%
Less: payroll taxes – 10%
Profit 36%

The associate would have to produce $1,176 per operatory used to give you the same profit as a hygienist. If the dental associate used two operatories, he or she would have to produce $2,352 per day to be as profitable as hygiene would be in those same operatories.

In our experience, it is easier to bring hygiene production up to $960 per day than it is to find a dental associate capable of consistently producing $1,176 in each operatory, or $2,352 in two operatories. Also, the associate must have a sufficient flow of patients to make this production level possible.

When structuring both hygiene and associate compensation, we advise that you compare what the hygienist or associate is earning on the relationship, compared to what the senior dentist is earning. The relative compensation levels should reflect a fair distribution based on the parties’ investments of time, energy, and financial risk.

For help in increasing hygiene production, a key element to increasing doctor profitability, contact J.P. Consultants or Advance Hygiene Concepts.

Dental Management: The Value of Entrepreneurism

dental management entrepreneural opportunity Dentists are classic entrepreneurs — they seek to better themselves through education, and take economic risks (the cost of education, the cost of opening and managing a dental practice) in pursuit of a better life for themselves and their families.

According to American Enterprise Institute President Arthur Brooks, “Earned success gives people a sense of meaning about their lives.”

Moreover, by succeeding as entrepreneurs, Dentists keep alive the American Dream that others may likewise create a better life for themselves, if they too elect to take advantage of the opportunities that exist.

The recent marriage of Prince William to Catherine Middleton, child of two employees-turned-entrepreneurs, broke tradition in Great Britain and brought attention to the value of entrepreneurism.

“The Middletons symbolize the opportunity that exists in a free-market system for those who take advantage of it. It is worth noting that they founded (their business) during the Thatcher era, when the Conservative government focused on lifting barriers to entrepreneurs through lower taxation, less regulation , and privatization,” writes John Berlau, a director at the Competitive Enterprise Institute in Washington, D.C.

The idea of ordinary people building successful businesses — a concept often called the ‘American Dream’ — is now realized in certain British TV programs.

One study of thousands of British employees revealed that the workers’ perception of happiness actually rose as their demographic group’s average income increases relative to their own. It was the opportunity to advance that mattered.

When William and Kate said ‘I do,’ the royal family of Britain “officially wed the dreams and aspirations of millions of entrepreneurs in the UK, the U.S., and throughout the world” . . . and maybe some dentists too.

For more on this story see: The Entrepreneurs’ Princess

Dentists: Do You Treat Kids? (video)

pediatric dentistry The Wealthy Dentist conducted a survey that asked dentists if they treat pediatric patients.

Pediatric dentistry isn’t as profitable as cosmetic dentistry, but it’s rarely about the money.

Pediatric dentistry is a good thing to do for your community, but only if you like doing it.

“If you treat children like gold, you’ll see their mothers, fathers, aunts, uncles, and grandparents as well!” said a Virginia dentist.

Pediatric dental patients can provide a whole new set of family patients. But not all doctors are cut out to be a children’s dentist.

“I break out in hives when I treat anyone under 18!” said an Indiana dentist.

Click on play to watch the survey video and hear the full survey results –

Dental Retirement Age? No Way, Say Dentists

Dentists veto mandatory dental retirement ageDentists shouldn’t have to retire just because they’ve reached a certain age, say doctors. This survey found only 1 dentist in 10 supporting a mandatory retirement age for dentists.

A mandatory dental retirement age was recently in the spotlight when the European Court of Justice ruled in favor of Germany’s law mandating retirement for dentists and firefighters past a certain age, finding it does not constitute age discrimination. [Read more]

Here are some thoughts from dentists:

  • Dental continuing education should be required. Patients know when a practitioner’s abilities are diminishing, as do dentists themselves. Liability concern should prevent dentists from procedures for which they no longer have the skills.” (Mississippi dentist)
  • “In Germany and in Europe, there is a mandatory retirement age for workers/employee, so why not for dentists? I do not think it has to do with competence, but rather with social economy and spot for young dentists to practice.” (California orthodontist)
  • “I am approaching my 76th birthday and 48th year in practice. I still am able to deliver superb dentistry including full-mouth and cosmetic dentistry cases, but I just see patients three days a week. To me, retirement is a nasty word.” (California prosthodontist)
  • “I am about to turn 70 this year, and I feel my skills are better than they have ever been. I take lots of continuing dental education and feel I know so much more about dentistry than most younger recent grads.” (New York dentist)
  • “A simple evaluation of current work is very easy to do today. Just have a dentist present pictures and radiographs of current work as a competency report.” (New York prosthodontist)
  • “There maybe should be some additional testing in those dentists over 75-80. We have one in our city that I believe is 88… His patients are not getting proper periodontal care and I’m concerned about the dentistry provided.” (California dentist)
  • “The doctor should know when it is time to hang it up.” (Texas pediatric dentist)
  • “If you can be US president in your 70’s, why not a dentist?”
  • “Not only do people’s skills vary, different aspects of dentistry demand different levels of skills. In addition to orthodontics, I practice dental sleep medicine (oral appliances for snoring and obstructive sleep apnea). I could practice the latter until they take me out on a stretcher.” (Oregon braces dentist)
  • “We all know dentists that should have ‘retired’ at the age of 30! Some of us can go to 70 with no problems. It depends on the individual.” (Nevada dentist)
  • “Dumb idea. Who would make that decision — some governmental bureaucrat? Should there be a mandatory retirement from life itself, too?” (California dentist)
  • “The wealth of knowledge and experience an older dentist has would be a loss to our profession if he/she could not mentor a new associate in a clinical environment.” (Pennsylvania dentist)
  • “Specialties vary. People vary. It’s insane to consider seriously.” (Colorado orthodontist)

Read more: Dentist Retirement: Dentists Say ‘No’ to Mandatory Retirement Age

Disclaimer

© 2017, The Wealthy Dentist - Dental Marketing - All Rights Reserved - Dental Website Marketing Site Map

The Wealthy Dentist® - Contact by email - Privacy Policy

P.O. Box 1220, Tiburon, CA 94920

The material on this website is offered in conjunction with MasterPlan Alliance.

Copyright 2017 Du Molin & Du Molin, Inc. All rights reserved. If you would like to use material from this site, our reports, articles, training programs
or tutorials for use in any printed or electronic media, please ask permission first by email.