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By Steven Peacock, DDS—Dental Co-Op member since 1998
T
h e l a n d s c a p e o f
dentistry has changed
dr ama t ic a l l y s i nc e
graduating from USC in 1973.
There were no corporate dental
practices to speak of and I was
paid fairly at time of service.
Now nearly 30% of our profes-
sion is wrapped up in corpo-
rate structures. Waiting 30 to
90 days to be reimbursed for
30% of our full fees has become the norm. Practicing as an
independent dentist is not what it used to be and things must
change to preserve our profession.
The Dream
When we applied for admission to a dental program we had
a ‘dream’. We envisioned taking risks, making decisions
and reaping our reward. Students currently graduating find
their dream remote or unachievable. The visions of being in
charge, setting a schedule and being a beloved extension of
our patients’ family evaporates. Students in dental programs
across the country are given the impression that traditional
private practice is dying. Most students believe that beginning
their career as an employee is the only option. The realities
for the employed dentist without an exit strategy can be grim,
frustrating and disappointing.
Our medical colleagues have been in a pot of warming water
for the past thirty years, and now find themselves cooked. Our
medical counterparts are controlled by the insurance industry,
hospitals and large corporate practices. Few independent prac-
titioners are left.
Insurance
A recent survey by Dental Products Report reveals that the
most stressful issue in practice is dealing with insurance.
Approximately 80% of the average practice income dollar is
derived from insured patients and insurance billings. PPO
growth is significant and casts a huge shadow over indemnity
insurance. Some predict indemnity insurance will disappear
in 5-7 years.
The independent dentist is handcuffed by anti-trust laws that
prevent discussing fees or fee schedules with other dentists.
Unlike corporate practices, the ability to knowledgeably deal
with insurance carriers is severely limited.
Practice Overhead
Independent dentists trying to negotiate lower overhead is
virtually useless. Without a large footprint our voice is not
heard among suppliers, manufacturers and critical vendors.
Without numbers, achieving economies of scale is impossible.
The Alternative
Some eighteen years ago the Dental Cooperative was created
by independent dentists who weren’t about to wait around and
hope things got better. I was fortunate to be included in that
initial group that started a platform needed for change. We
are now 500 strong in 5 states and gaining momentum like
never before. By uniting and working together, independent
dentists now have access to benefits only corporate practices
have enjoyed.
In 2014, like-minded dentists from New Mexico brought the
Dental Cooperative to Albuquerque. Membership has grown
to over 100 generalists and specialists and is expanding rapidly
throughout the state.
This initial group has partnered with suppliers and manu-
facturers that include P&G, Komet, Keystone and DHPI to
name a few. Co-Op members save thousands of dollars in prac-
tice transition and refinance opportunities through local and
national banks. Working directly with insurance carriers, we’ve
obtained enhanced fee schedules for our members to choose.
Many Co-Op members have realized an average annual savings
of over $2,600 on the cost of credit card processing. Most
importantly, we’ve created a collective alternative to dental
insurance that generates fee for service patients.
Don’t watch our treasured profession erode around us—
be proactive and get involved!
Working smart and
together we
CAN
preserve and empower the dream.
Stop by our booth at the upcoming NMDA
convention this June or contact our Area
Director, Adam Halpern, at 575-224-6722
to find out what the Dental Cooperative can
do to strengthen your practice.
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New Mexico Dental Journal, Spring 2016