Just think if all your patient's came to you for their routine exams and every time someone had a cavity, or needed a crown, or any other extra procedure they went to a dentist at Costco. How would you fare?
Ok, now lets say that almost all your patients have dental insurance that pays half of what you usually get per patient currently and there are no private pay patients because they all go to Costco. How are you doing now?
Oh crap, then you are living the optometric dream!
About 6 months ago I accidentally opened some mail that was addressed to the dentist in my building. It was payment for a routine exam and I was speechless. I couldn't believe how much it was. Very eye opening experience so to speak. Of course they charge close to $300 for a new patient exam and the local wally O.D. charges $46.
Indiana,
I've read lots of interesting threads on this forum in the last couple of months. It seems like Optometry and Pharmacy practitioners are the most concerned about the future of their professions. On the medical side, only a few experienced providers seem to have posted about concerns of Obamacare ruining their profession, the students don't seem too concerned.
Dentistry seems to thus far have a good future, although my profession also has it's problems; there is currently a push for "mid-level" providers to be able to perform very basic dental procedures, basically there are legislators who want to turn our profession into the equivalent of a "trade" and the practitioners into "tradesman" like carpenters or plumbers. I daresay none of the legislators pushing for this legislation in several states would care to have anything less than a Doctor of Dentistry treating themselves or their family, but it usually is that way ("do as I say and not as I do"). Also, as Dentistry has grown more lucrative, there have been several new dental schools open in the past decade, with more planned. And the crappy economy has pushed back the retirement plans of thousands of older DDS's, creating oversupply in many more desireable-to-live-in urban areas.
I can see how the big box stores and especially online availability (contact lens express, etc.) have taken a huge chunk out of a typical OD's practice. Fortunately we make our living providing procedural services, and not goods. And although there are many corporate chain "mill" dental practices, I haven't heard of WalMart or Costco trying to open dental offices .
I had actually thought that with the advent and increased popularity of LASIK that many OD's would find their patient pools dwindling. Have you noticed that at all? (I also know some OD's have entered group practice with MD opthalmologists who offer LASIK). Literally half of my closer family friends have had LASIK, and they are pretty happy with not having to wear glasses. Myself I would probably only consider it when I retire (if I am still a candidate), as my career relies entirely on my ability to perform minute, detailed procedures with my eyes and hands, and I am not willing to take any risks that surgery would entail just to be free of contacts.
As far as the dentist payment you opened, I would have to see it to give you a complete explanation, but I will say I don't know ANY dentist who gets $300 for a routine exam. Maybe if it included a cone beam dental CT, and full mouth impressions/ study models for planning a complex restorative case, and/or also included hygiene services for the day, particularly if the patient has periodontal disease. My UCR fee for a complete set of digital radiographs and complete oral examination is probably close to $200, but I NEVER get that; like most practices who practice in saturated areas, I have largely a PPO practice, so a typical payment from insurance for this would be right around $100. Just as my full fee for a crown is about $1000, most of the plans I take pay me $600-$750 (I don't take the **** plans that I had to take when I worked at a corporate mill - those paid $400 per crown, and we used cheap materials, and had a very cheap lab - I made sure the crowns fit, and were clinically adequate, but they were hardly things of beauty....
I usually only get $1000 per restorative unit when I am doing a cosmetic case for a very discerning patient, and in this case I use a dental prosthetic laboratory that charges several hundred dollars a unit for high end esthetic work. Also, especially in this economy, I typically offer hefty discounts to pts who do not have insurance, with the exception being large cosmetic cases on patients who give me a vibe that they will be very difficult to please.... these PIA patients are quoted the full fee, take it or leave it....
I would also add that dentistry has amongst the highest overheads of the professions. I have a medium size practice, state of the art without being over the top fancy. The buildout on my leased office space cost close to $400k (dental equipment is UNGODLY expensive), my lowest paid employees make over $20/hour (and yes dental assistants are much more highly skilled than typical medical assistants, there is no comparison), and my highest paid employees (my RDH's) make between $40 and $50 per hour. So when they perform a routine prophylaxis on a typical PPO plan, it is basically a "break even" or "loss leader" for the practice. If I am not averaging over $250 to $300 per hour of production based on my costs and hours of practice, I am LOSING money. I could go on and on, but you get the idea....
Just curious, how much does it typically cost to set up an OD office? the size for a single office is usually probably half the size of a dental office wouldn't you say (for a sole proprietor)? But it seems many more OD's go into group practice, as the profession seems to lend itself to this practice model more so than dentistry. Any how many employees do you need? and how much are they paid?
Inquiring minds wanna know!
PS - would YOU have honored my request to match the price of contacts at Costco? (especially as I was completely up front about it, and offered to pay in full in CASH so there would be no credit fees, etc. involved for the OD office)