OverSaturation of dentist
on 9/3/2016 6:29:32 AM deanmersky replied to this Topic
The real impact is not being fully explained, IMO. For example, how is a private practitioner affected in comparison to a CHC and to the DSO community, and now, offices owned by insurance companies.
Policy setters are not expecting an increase in private patients. Instead, they are expecting and actually trying to increase the number of Medicaid patients. Does that mean, in private practice, more dentists competing for the same private patient pool? No, it means competing for a shrinking private patient pool.
As DSOs increase, the continually pool patients from private practitioners. Their private patient population will continue to grow at the expense of and increased population of private practitioners. More dentists competing for fewer private patients is the result that nobody is spelling out.
Meanwhile, DSOs, CHCs, Insurance Cos, the ADA and dental schools are changing curriculum to be less of what it used to be, clinically, to more geared toward Medicaid dental care. Why? Because fewer dentists will be able to survive from only the private patient pool, and one other reason. Non private practice entities are masters at capitalizing on free tax dollars attached to patients. They need more dentists geared for this group until more MLPs are available.
DSOs, CHCs, Insurance Cos, and certain dental companies expect to win big from Medicaid. They are working together to ensure that happens, and it doesn't matter to them if dentists are sacrificed as a result.
Business people work with three main categories: Assets, Liabilities, and Equity. Assets produce income and help build equity. To the business world mentioned above, dentists are assets (the machinery) that produce revenues. If they/you don't produce enough revenue to sufficiently exceed your cost basis and liabilities, they/you become a liability. If a less expensive asset, MLP, becomes available, productivity can increase and produce greater profitability.
Look at the companies supporting the Santa Fe Group, a left wing utra liberal org helping current changes along:
http://santafegroup.org/sponsors-supporters/
There is a logic to all of this. Many of those same sponsors are also sponsors of Oral Health America, pushing MLPs, also. Then there is DentaQuest (and others) owning dental offices, and the distinct support afforded the DSOs. And this year NADP meeting sponsors, Aspen, Heartland, and Pacific (all DSOs) over three different days.
The ADA? They provide the excellent data and projections for tracking the dentist population.
There is more to this story I'll share later that ties right back to the ADA, schools, and insurance.
Dentistry's biggest vulnerability
Quote: (mouthjanitor)
... is the amount of debt held by each new graduate.
Private equity exploits this.
Yes, but they have a lot of help from insurance, large dental companies, US Govt (Offices of Medicare/Medicaid), Dental Schools (ADA), and left/liberal nonprofits. Let's not forget politicians. They are all working to channel profits from Medicaid funded (tax dollars) dentistry in their own directions, careful to point out how much they care about the "underserved."
The entire country, and recent grads are being bilked because it is not only allowed, it is encouraged. It is always the same players showing up at the same meetings. You can see for yourself here: http://santafegroup.org/sponsors-supporters/
But keep in mind, these things happen because private practitioners allow it to happen. So long as that is the professions strategy, it will continue.
If you would like to view this topic on the Dentaltown Message Board click on the link below:
http://www.dentaltown.com/MessageBoard/thread.aspx?s=2&f=2573&t=276820&v=