Dentists take a bite out of recession - Sacramento Business Journal:

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Patients also stretch out dental exams and cleanings with copaymentsd when money istight — or nix them altogether if they get laid off and lose Yet most people keep up the “meaf and potatoes” of dentapl work because they’ve bought the notion that preventiomn is important and cheaper than emergency care when a tootnh gets so bad they can’t standc it anymore. “Dentistry is one of the healthcare professions,” said Dr. Jack owner of in Carmichael. “People need what they regardless ofeconomic conditions.” This helps explaihn why dentists had higher profift margins than any othedr industry in 2008.
With net profit marginsa of 17percent nationwide, dentists beat out tax preparers, lawyers and doctors, according to , a N.C., firm that tracks financial performance at privates companies (See chart at right). Dentists in the West reportedr net profit margins of more than19 percent, thoughj sales growth in the past year was lowetr than the country as a whole. Nine of the top 10 industriess areservice providers. “These industries are well positioned to withstandr the economic downturn due to their profitabilityu as well as the continued public demand for many of the Sageworks spokeswoman Jackie Pelusoi wrote inan e-mail.
Local sources reported a mixed financial picture for dentists in Sacramento and Eight out of 10 dentists are sole practitionerd who bear the brunt of a fluctuatint economy ontheir own. Some fare better than others. Much depends on the mix of workthey do. Most dependable is basid dentistry paid forby insurance, even though almosft half of American adults have no dental according to the . “Am I surprised by the rankings? Quitde honestly, yes,” said Cathy Mudge, chiefr administrative officer forthe “Some dentists are seeing an increas in their patient base. I’m not sure why. Mayb people are afraid they’ll lose their benefits,” she said.
at the end of the year, we see a One thing everybodyagrees on: Fewer patients are goin for pricey optional procedures. “I’ve seen a 15 to 20 percenyt drop inanything elective,” said Gabrielle owner of in Carmichael. A full set of veneersx for a bright smild on six front teethcosts $6,000, she said. “A couplde of years ago, patients used home-equity loans or credit cards to pay for Rasi said. “Now, it’s ‘I think I’l wait.’ ” About 75 percenr of Rasi’s business is a “meatg and potatoes” practice of basic dentistry for patientsz coveredby insurance. “Cleanings every year; fillings every year or two.
Maybs a crown,” Rasi said. “That’s what’s keeping me in business. And it’a growing. I still get new patientxs all the time.” But Rasi is more carefukl with expensesthese days. Dentists have to pay rent or a employ staff, buy professional insurancer and cover other overhead costs such as lab fees and Rasi is willing to pay more to keep quality staff, thouggh she scaled back hours for one worker who then left becausse she needed a full-time job. The part of the business won’tf be cut anytime soon. The office offers massage pads onpatient chairs, paraffin treatmentsw for the hands, eye ear plugs and relaxation tapes.