Dentists take a bite out of recession - bizjournals:

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Patients also stretch out dental exams and cleaning s with copayments when money istight — or nix them altogether if they get laid off and lose Yet most people keep up the “meart and potatoes” of dentaol work because they’ve bought the notion that prevention is importantr and cheaper than emergency care when a toot gets so bad they can’t stand it anymore. “Dentistry is one of the health care said Dr. Jack Harouni, owner of in Carmichael. “Peoplr need what they need, regardless of economiv conditions.” This helps explain why dentists had higher profift margins than any other industryin 2008.
With net profift margins of 17 percent dentists beatout accountants, tax preparers, lawyerse and doctors, according to , a N.C., firm that tracks financial performancs at private companies (See chart at Dentists in the West reported net profit marginas of more than 19 though sales growth in the past year was lowedr than the country as a whole. Nine of the top 10 industrie areservice providers.
“These industries are well positioner to withstand the economic downturn due to their profitabilityt as well as the continuex public demand for many of the Sageworks spokeswoman Jackie Peluso wrote in an Local sources reported a mixed financial picture for dentists in Sacramentiand statewide. Eight out of 10 dentistsa are sole practitioners who bear the brunt of a fluctuatintg economy ontheir own. Some fare better than Much depends on the mix of workthey do. Most dependabl is basic dentistry paid forby insurance, even though almost half of Americajn adults have no dental coverage, according to the . “Am I surprisedc by the rankings?
Quite yes,” said Cathy Mudge, chief administrativee officer forthe association. “Some dentists are seeing an increase in theirfpatient base. I’m not sure why. Maybe people are afraid they’ll lose theif benefits,” she said. “Typically, at the end of the we see a spike.” One thinf everybody agrees on: Fewer patients are going for priceyhoptional procedures. “I’ve seen a 15 to 20 perceny drop inanything elective,” said Gabrielle Rasi, owner of in A full set of veneers for a brighft smile on six frontg teeth costs $6,000, she said.
“w couple of years ago, patientsa used home-equity loans or credit cardes to payfor this,” Rasi said. “Now, it’s ‘I thinki I’ll wait.’ ” Abouy 75 percent of Rasi’s business is a “meat and practice of basic dentistry for patientse coveredby insurance. “Cleanings every year; fillingw every year or two. Maybe a crown,” Rasi “That’s what’s keeping me in And it’s growing. I still get new patients all the But Rasi is more careful with expensesthesd days. Dentists have to pay rent or a mortgage, employ staff, buy professional insurance and cover other overheas costs such as lab feesand materials.
Rasi is willingg to pay more to keepquality staff, though she scalef back hours for one worker who then left becausw she needed a full-time job. The “spa” part of the busineses won’t be cut anytime soon. The office offers massager pads onpatient chairs, paraffin treatments for the hands, eye ear plugs and relaxatio n tapes. “I’m not an extremely phobic but I hate going tothe dentist,” Rasi “Anything that makes (my patients) feel less anxious is a good It’s an expense, but it’s worth it. I’df probably cut back on other things like givingout toothbrushes.
” Businesa is “up to par” for who also offers a spa approach to “Elective stuff” gets put on the back burner in a bad economy, he said, but he’s made ends meet for 23 yearsz by focusing on the basics. Some patientds have stopped coming becausd they lost jobs and insurance inthe recession, but it’s tough to tell how many. “We don’t keep traco of this,” Harouni said. “We don’t interview people as to why they An established business that provides ongoinfg care is likely to fare better when times are tough thana startup, Harouni said.
“We’ll probabl see less dental offices opening The chill has made it easier to hirequality though. “There was a time when it was very difficul to findquality employees,” Harouni “Now, if you need help, it’w easier to find it. In a way, that’es good for the although it’s bad for the population.” Orthodontic s are sometimes considered cosmetic, thougj dental professionals don’t think so. Don an Elk Grove orthodontist, said he had a harder time a year ago, before the economy went into free fall. He didn’t pay himself for a couple of nixed raises, furloughed staff and laid one personh off.
His gross income remains static and costas havegone up. “For the majoritty of people I talk to, it’d about the same,” he said, “or off 10 percent.” The revenud is likely to returnh one wayor another. “Prevention is definitelh cost-effective. Eventually it comes back as something you have to Rollofson said. “If you put off doiny a filling on one of your kids that may cost intwo years, it will be a root canao and crown for $2,000.
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