PPO negotiation is becoming increasingly important for individual practitioners to positively impact the profitability and sustainability of their practices as dental costs continue to rise. According to a new report by Health Affairs, dental experts say the cost of oral healthcare has increased at twice the rate of inflation since 2000 and will continue to rise. In fact, the Bureau of Labor Statistics shows that the costs of providing dental services have increased 297% between 1985 and 2013. This is significant when compared to the overall costs of goods and services, which increased only 114% over the same time-frame.
Dr. Roger P. Levin, DDS, founder and CEO of the Levin Group, projects that while dental costs will increase; dentists’ incomes will continue to decline due primarily to lower insurance reimbursements and the continual decline in insurance reimbursements. While the dental industry is currently serving only about half of the US population, a federal report projected a shortage of dentists by 2025. In addition, a 10% drop in solo practitioners was observed in the 2012 Distribution of Dentists survey conducted by the ADA Health Resources Policy Center.
Sources:
1.www.drjoemiskin.com