Although like Jeff I do not participate in manged care, I'll try to answer this question from things learned on Dentaltown.com and my associateships. I agree that if you can avoid HMOs do it, but if you can't here are three ways that dentists make a buck while taking HMOs:
The Patient Rapist: This is the evil HMO dentist you hear about. HMOs pay a monthly check (capitation check) per head that your office is expected to see. This "practictioner" makes money by signing up with as many HMO plans as possible and does her/his best to not see the patient. If one makes it in, the doc prescribes all sorts of unnecessary dental work that is not "covered" by the plan and is thus paid in full by the patient at the denists' normal fees.
The Costco Dentist: Hign volume, low customer service, clean but basic facility. You know the place. I get about $800 for a crown. I schedule one hour. I probably spend about 40 minutes working on the patient the rest is schmoozing. No schmoozing at the HMO! Basically if you get $350 per crown and spend an actual 30 minutes per patient, you can do two crowns at the HMO for every one crown at my office. You'll get about $100 less and may have to use a diffrent lab that may not put in occlusal stain or tertiary anatomy, but the margins will be tight occlusion sound etc. You just won't get asked if your kids like Kindergarten! Not a bad way to do it, but not for me.
The Pankey Dentist: In dental school and is some CE courses we are taught "perfect dentistry". I don't think that many would argue that a gold inlay with glass smooth margins is a better restoration than an amalgam, or a porcelain onlay is better than an MODBL composite. So why don't we stick to our guns and just prescribe these restorations to all patients regardless? In my opinion, we have to disgnose the mouth as well as the wallet. After a while you get a feel for what people can afford. I may recommend a MOD composite even though I know that a porcelain onlay may be a better restoration. Anyway, these HMO dentists typically recommend perfect ivory tower dentistry and if the patient does not want it, they can leave. Again, they (the doc) still get the check and more patients on the plan.
As I have stated in other posts, I don't think HMOs are "the devil". I think that they are definately waning in popularity though. You really just have to make an educated choice on whether to participate or not. If you live in an area with a depressed economy and all the workers have an HMO plan, I would think that the majority will go to an HMO dentist. If you practice in this city, you may do OK by not participating, but chances are you won't be very busy. I think HMOs allow some people with limited income access to dental care that they just could not afford elswhere.
Obviously if you practice in an affluent area where HMOs are not prevalent then the descision to particpate is optional. In my town there are a lot of HMOs. I don't participate and I am doing fine. When you get out of school, you will have a ton of choices to make business wise. Its all a numbers game.
August