Recently, there has been a lot of talk about the inflation of most goods and services, and this includes healthcare and dental care. Unlike other economic changes, a rise in overall prices essentially means consumers and professionals are bearing the brunt of the financial burden. This can lead to lesser profitability for dentists due to the growing cost of doing business and reduced demand for care. Patients are having to choose between paying for dental work or other big expenses demanding part of their limited budgets.
Perhaps this is the time to consult with your financial advisors and create a cost control strategy while focusing on what you can do to increase your revenues. A good idea is to look into ways to reduce costs, like switching to a trusted dental lab with lower fees. In this post, we are discussing how inflation may affect your dental practice over the next 5 years.
Rising Operational and Insurance Costs
Odds are your dental practice is still reeling from the effects of having to spend a ridiculous amount on PPE (personal protective equipment) at the beginning of the pandemic. Although some of the PPE supply chains have improved, the cost of these items is unlikely to revert to their pre-COVID-19 prices. You’ve also probably had to invest in extra safety measures like hand sanitizer, disposable masks for patients, and plexiglass dividers.
A large number of dental practices have raised their fees to offset the increased cost of providing care. With that said, the cost of insurances related to running a dental office is also estimated to rise. Malpractice and health coverage have seen major change, along with other business-related insurances.
Rising Fees and Loans
If you haven’t done it already, talk with your financial advisors about what kind of fee increases you can implement based on your zip code. Most insurance providers design their payment schedules based on the area where your practice is located. There is generally a time span that restricts the frequency of dental fee surges (two years is common) if you belong to any insurance network or PPO. That figure should be calculated according to what you estimate the overall inflation will be two years from now.
Inflation could also have an effect on the commercial loan default rate, causing the banks to raise their interest rates. If this happens, you’ll need to review your current business loans and “lock-in” a fixed rate loan (if you don’t have one already).
On top of all that, most young dentists have student loan debts once they graduate. If you are in the same situation, a rise in inflation with a simultaneous increase in rates would have a major effect on your current student loan if you have chosen to refinance the loan at a variable rate.
We can Help Reduce Your Operational Costs and Support the Way You Practice Dentistry
The economy is still recovering from the pandemic and the overall impact of inflation is yet to be seen. But working with a trusted dental lab can help you plan ahead so you can continue providing a good experience to your patients.
At Trident Dental Laboratories, we keep up with the latest dental technologies and materials that are driving the industry forward – so you don’t have to. We have helped thousands of general dentists, cosmetic dentists, and specialists provide better products for their practice over the last 30+ years.
If you’re looking to access state-of-the-art CAD/CAM technology like 3D printers, milling machines, design stations, and scanners without making any significant investment, we have got you covered. If you have any questions, please call our dental lab at 800-221-4831 or contact us online.