I think oversaturation of orthodontists (due to openings of new ortho programs and increase in class size at some programs) is a much bigger threat than expansion of corp offices. Corp offices actually helped orthodontists like me, who are afraid to take risk to start their own office right after graduation. Ortho is not the only specialty that faces this oversaturation problem. The openings of new dental school and pedo programs in the last 10 years create oversaturations of general and pediatric dentists as well. OS and perio are competing against each other to gain the referrals from the same group of GPs in the area. Due to oversaturation of GPs, more GPs are trying to do their own endos and refer less to the endodontists.
These are what I've seen and experienced over the last 20 years:
- In the late 90s when I was still a dental student, the corp paid their associate orthodontists $500/day, which was around $200 more per day than what an associate GP made.
- Five years later when I completed my ortho residency in the early 2000s, my first job at a corp paid me $800/day....and another corp office paid me $950/day. At that time, there was a shortage of orthodontists because it was very hard to pass the CA board exam and ortho programs didn't pump out as many new grads as they do right now. It took the corps 3 months to find me. I easily got 3 job offers a month before I graduated. Because of the shortage, we, orthodontists, were able to demand the corps to pay us $1200-1500/day by the mid 2000s.
- Then the CA Dental board started to make things easier for orthodontists and dentists from other states to enter CA....by taking the easier Western Regional Board exam, or by reciprocity, or by doing a year of GPR/AEGD. We now have huge surpluses of dentists and specialists. Finding good paying orthodontic jobs at the corps is no longer easy. Before, the corps begged the new grad orthos to come work for them....no experience necessary. Now, the corps only select the orthos, who are fast, complain less, and have a few years of experience. The good thing is they haven't cut the base salaries...still around $1200-1500/day. And of course, the 2008 reccession/housing bubble added more salt to the injury. Many real estate brokers, who used to make 6-figure incomes, now have to work at Target. People have lost their jobs and can no long afford to pay $5-6k ortho tx for their kids. With huge drops in new patients, a couple of big name orthodontists in my area had to sell their pratices or merge into another ortho practice. Oversaturation does not just hurt the private practices. The corp offices I work for have been getting fewer new patient consultations as well.
Yes, most specialists I know have their own offices. However, most of them don't have enough patients to keep them busy full time at one location....either because they are too good and too fast that they can treat a lot of patients in a day and don't need to work too many days....OR....because the general dentists don't refer enough patients to their practices. So to make more and to keep themselves busy, most of them travel to multiple offices: their satelite offices, GP offices, or corp offices etc. For specialists, I think it's better to spend the same amount of money to open 2-3 small low overhead offices (to reach out to more referring GPs) than to open 1 big expensive state-of-the-art office.