Pave a path of success for your dental practice during uncertain economic times
As another recession looms over the U.S. economy, it is predicted that there will be a decline in patients going to the dental office. It is important to be prepared to navigate these uncertain times so that your practice can weather the storm and keep a steady flow of patients coming through the door.
Key Takeaways:
- Less than 50 percent of adults are expected to have private dental insurance
- More patients will lose employee dental benefits and move to individual plans
- Employers will be searching for cost-saving benefit solutions for employees
- Dental offices will need to become more competitive amongst each other to attract patients
- Practicing providers who are recently out of dental school could have more difficulty meeting student debts
Now that inflation is at a record high of 8.5%, the effects of a recession can result in the economy taking years to recover. With all that in mind, here are some scenarios that can impact your practice and what steps you can take.
Less patients will have insurance
Even less adults will have private dental care coverage, compared to the national average estimate of 50.2% according to the CDC in 2019.
More patients will lose their company benefits
More patients will lose their benefits and move to individual plans. Employers will be searching for cost-saving benefit solutions for employees. It may be worth expanding the types of patients and insurance you accept at your practice if you are not already. According to an ADA HPI study only one in three dentists take Medicaid. This affects access to care for low-income families and adults. 39 states in the U.S. have adopted Medicaid expansion and many of the countries’ large insurance companies are widening access to Medicare Advantage plans.
Dental offices will need to be more competitive
Dental offices will need to become more competitive amongst each other to attract patients - cross-training staff, offering more in-house services (even vaccines), and extending operating hours. Other tips include addressing your fees, creating a supply management process, and focusing on patient relationships. For solo practitioners or those that head their practice, it helps to build a support team of qualified and trusted professionals. For example, an advisor with a financial background who can help make informed decisions.
New dental providers will struggle to meet student debts
For practicing providers fresh out of dental school, the financial climate could make it even more challenging to meet student debts. In some good news, the White House released plans to forgive up to $20,000 in student loan debt to eligible borrowers. This points to possible relief for some dental professionals. Annual compensation does vary based on the role.
The factors we have talked about are important to keep in mind. There may be more considerations to make as the predicted recession unfolds. We hope this is helpful, as you work to keep the effects of potential inflation in dentistry from knocking at your door. Solstice was founded by dentists, and we understand the unique needs of providers. We look forward to partnering with our network to keep patients coming in.
