Wonderful topic, and an issue my city is striving to solve. I had my own practice for 12 years and have a sobering understanding of the incredible amount of work it takes to run a profitable practice. It’s a constant tug of war between overhead expenses and profit. Charitable work makes me feel good, but it certainly doesn’t pay the bills. I had to take an enormous small business loan to start my practice from scratch, and with a $5500 monthly loan payment (along with other overhead items such as payroll) I needed the work I did to be profitable. You can only pay yourself from overhead for so long...I’m a work horse and have to produce.
Chapter 2 of my career begins working with my local health system to create the very first fully health system-financed hospital dental clinic, unaffiliated with a dental school/GPR. One reason GPRs make sense is the low cost of dental residents...hospitals get more bang for their buck...young gunners willing to wake up to a beeping pager at 2am to drain an abscess.
Our program is very similar to the GPR model. We run a full time off site hospital dental clinic seeing medically compromised patients, Medicaid patients, do work in the OR, and have ED call...I am on call 10 days per month. During the day (from 8-5), ED patients are immediately triaged and transferred directly to dental clinic, which is a huge boon and frees up ED beds.
One way we are trying to solve the financial concerns listed in earlier posts is by marketing our off site clinic as more than a Medicaid clinic. We are credentialed with all third party insurance companies as well, and do the same profitable procedures I did in my practice—most notably crown and bridge, implant restorations, removable, etc. We are much much more than an extraction clinic.
My compensation package is a mixture of guaranteed base pay and bonus pay based on relative value units (RVUs). RVUs are a very common system and measure of reimbursement for hospitals. This is largely a work in progress for the dental field, since RVUs and survey data for dentistry are few and far between. I do have concerns about the sustainability of using RVUs with dentistry, though, and time will tell if it’s fair and accurate for dentistry. I will try to update as the program evolves.