Mustafa Shah-Khan, DDS
Dentistry is an ever-changing profession. Whether the changes are in materials, technology, or clinical or business operations, we are forced to remain current or be left behind in our practices.
Over the years, a statistic that I’ve closely followed is the average annual income for general dentists. According to Marko Vujicic’s ADA Health Policy Institute article, an average general dentist’s income declined from $219,738 in 2005 to $174,780 in 2014. In inflation-adjusted terms, the income level in 2014 is comparable to what dentists made 17 years earlier in 1997.1
Most professions hope to slightly increase their compensation each year. As I conducted research for this article, I found the usual explanations for the decreases in dental income—fewer adults are visiting the dentist; there’s a lack of discretionary income; and there are a growing number of practitioners in the profession. These are factors that have been discussed ad nauseam.
The element that is not often discussed is that we are now seeing a statistically significant change in repayment rates by private insurance companies. Most percent of practitioners across the country participate in at least one dental plan. As a result, these practitioners are contractually bound to accept established repayment rates set forth by the insurance companies. Dr. Vujicic, along with the ADA Health Policy Institute and the National Association of Dental Plans, analyzed over 23 million claims of the 10 most frequently used dental codes. The results stated, “Nationally, there was a 10.4% reduction” in repayment rates by private carriers between 2005 and 2014. The largest reduction was in New York State, with 26.2%. Dr. Vujicic summarized that there was a 77% correlation between dentists who participate in PPO networks and the reduction of repayment rates.1
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