Due to rising inflation and the costs associated with manufacturing supplies, shipping and logistics and interest rates has encouraged Dentistry practice to create a plan to counteract inflation and the costs associated with maintaining the business.

Cost of PPE

The cost of PPE and appropriate attire has consistently been increasing due to inflation which is currently at a level we haven’t seen since 2009. Dental practice expenses will be increasing in different categories depending on suppliers, supply chain, cost of personal protective equipment (PPE), interest rates, and more.

COVID-19

COVID-19 brought about significant changes regarding how many professionals aimed to mitigate the risk of transmission. Initially there was a global shortage of PPE, which heavily impacted supplies to the dental market, and in early 2022 a dentistry census was conducted by Dentistry Co. which showed that “66% of the Dentistry Census respondents said they are now practicing defensive dentistry. Clinicians are trying to deliver the best dental care with the pressures of regulatory expectations, patient complaints, or worse, litigation uppermost in their minds.”

Let’s Consider a Couple Factors

Staffing Costs in Dentistry Have Increased Far Significantly Than Economic Inflation.

A study conducted by Levin Group estimates that staffing costs could increase by 10% and one of the more strategic main ways to offset this is to increase production by 10%. In addition, dentists that have their own practice could work on lowering and controlling overhead. This includes changing purchasing patterns and buying habits and do more analysis on suppliers and products before spending to focus on opportunities with good return on investment.

Its Inevitable for Inflation to Rise

Dentistry expenses are increasing regarding suppliers, supply chain, cost of personal protective equipment (PPE), interest rates, and more. A limitation does exist for dentistry practice to increase fees across the board as insured patients have a maximum allowable fee that will not go up unless that specific insurance carrier increases the practice profile.

Ways for Dentistry Practice to Counteract the Effects of Inflation

Maintain Strategic Buying Habits

Lowering overhead will help offset inflation. Another strategy is to swap out certain products for ones that are equal in quality but less expensive. A last resort strategy would be to put off a purchase that you don’t need immediately.

Raise Fees

Although this is more difficult for dental practices than other businesses, raising fees is still a good strategy. Some of the fees will be absorbed by noninsured patients and insurance companies. By submitting new fee schedules regularly, in many instances you will eventually increase the practice profile.

Increase Production

Some strategies to increase production may include reactivating patients who do not have next appointments to increasing the prices of home care products, decreasing no-shows, increasing the average production per patient, and increasing the practice speed which can compensate for inflation with more comprehensive dentistry through better case presentation.

Inflation does exist and at this time may be something new that a dentist practice will experience. In the current environment practices should work to increase production by at least 12% and decrease overhead by 4% to 6%. Practices working in these directions will not only offset inflation but increase profit margins and profitability.