Dentists take a bite out of recession - Minneapolis / St. Paul Business Journal:

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Patients also stretch out dental examws and cleanings with copayments when money istighrt — or nix them altogether if they get laid off and lose Yet most people keep up the “meatt and potatoes” of dental work because they’ver bought the notion that prevention is importantg and cheaper than emergency care when a tooth gets so bad they can’tr stand it anymore. “Dentistry is one of the healthbcare professions,” said Dr. Jack Harouni, owner of in “People need what they need, regardlesse of economic conditions.” This helps explain why dentists had highedr profit margins than any other industrygin 2008.
With net profit margins of 17 percenty nationwide, dentists beat out accountants, tax preparers, lawyers and doctors, accordinhg to , a N.C., firm that tracks financial performance at privatrecompanies (See chart at right). Dentists in the West reported net profigt margins of more than19 percent, though saless growth in the past year was lowere than the country as a whole. Nine of the top 10 industriesw areservice providers. “These industries are well positionedc to withstand the economic downturn due to their profitability as well as the continued public demand for many of the Sageworks spokeswoman Jackie Peluso wrote inan e-mail.
Local sources reported a mixeds financial picture for dentists in Sacramentokand statewide. Eight out of 10 dentistse are sole practitioners who bear the brunt of a fluctuatingf economy ontheir own. Some fare better than others. Much depends on the mix of workthey do. Most dependable is basicx dentistry paid forby insurance, even though almosty half of American adults have no dentao coverage, according to the . “Akm I surprised by the rankings? Quite honestly, yes,” said Cathy Mudge, chief administrativse officer forthe association. “Somr dentists are seeing an increase in theirpatient base. I’n not sure why.
Maybs people are afraid they’ll lose their benefits,” she “Typically, at the end of the year, we see a One thing everybodyagrees on: Fewer patients are going for pricey optionalk procedures. “I’ve seen a 15 to 20 percent drop in anything saidGabrielle Rasi, owner of in A full set of veneersd for a bright smile on six fronrt teeth costs $6,000, she said. “A couple of years ago, patientzs used home-equity loans or credit cards to pay for Rasi said. “Now, it’s ‘I think I’ll ” About 75 percent of Rasi’s business is a “mea and potatoes” practice of basi dentistry for patients coveredby insurance.
“Cleaningas every year; fillings every year or two. Maybe a Rasi said. “That’s what’s keeping me in And it’s growing. I still get new patientss all the time.” But Rasi is more careful with expensesthese days. Dentists have to pay rent or a employ staff, buy professional insurance and cover othert overhead costs such as lab fees and materials. Rasi is willinfg to pay more to keep quality though she scaled back hourz for one worker who then left becauss she neededa full-time job. The “spa” part of the businesa won’t be cut anytime soon.
The office offerws massager pads onpatient chairs, paraffin treatments for the eye pads, ear plugs and relaxationn tapes.