Quote:
Originally Posted by GordonBlue
but not too much. it's so friggen expensive to operate a practice and purchase equipment and supplies.
If you're not yet aware of that, you will be.
Dentists make a fair living, (as they should) but they're not the bandits many of you think they are.
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A pro-dentite on the internet .... you are like a unicorn!!
Believe it or not the average overhead of a dental office in Alberta is 65 percent. This is not a number thrown out by the association, this comes from a major accounting firm. Keep in mind as well, that this is for the entire province with no distinction between location of practice (city vs. town). This number does not include any wages/dividends/bonuses paid to the dentist of their spouse.
I would guess that the average overhead in a city like Calgary is probably closer to 70 percent.
I offer up those numbers to just give an idea of what an 8.5 percent reduction in fees would mean. Assuming no changes in wages, number of employees, rent, fixed costs etc, an 8.5 percent reduction in fees is a 24.3 percent reduction in income (8.5/35). That is a big hit to take considering that most offices have seen a decrease in revenue due to the economic downturn.
Now, I'm not on here looking for sympathy. I'm just pointing out some numbers to consider.
The point about insurance reimbursement is a major one. Jan 1/2018 you can guarantee that the insurance companies will drop their reimbursement level to the published 2018 fee guide. If dentists are unable to do the same due to the economic reality of running a business, patients with insurance are the ones who lose.