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

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Patients also stretch out dental exams and cleanings with copayments when money istight — or nix them altogethet if they get laid off and lose insurance. Yet most peopl keep up the “meat and potatoes” of denta work because they’ve bought the notion that preventionn is important and cheaper than emergency care when a tootyh gets so badthey can’t stand it anymore. “Dentistrt is one of the healthcare professions,” said Dr. Jack owner of in Carmichael. “Peoplew need what they regardless of economic This helps explain why dentists had higher profi t margins than any other industrtin 2008.
With net profit margins of 17 percenr nationwide, dentists beat out accountants, tax lawyers and doctors, according to , a Raleigh, firm that tracks financial performanced at privatecompanies (See chargt at right). Dentists in the West reported net profit margins of more than 19 though sales growth in the past year was lowee than the country asa whole. Nine of the top 10 industriex areservice providers.
“These industrie are well positioned to withstanf the economic downturn due to theid profitability as well as the continued public demanr for many ofthe services,” Sageworks spokeswomah Jackie Peluso wrote in an Local sources reported a mixed financial picturew for dentists in Sacramento and Eight out of 10 dentists are sole practitioners who bear the brunty of a fluctuating economy on theit own. Some fare bette than others. Much depends on the mix of workthey do. Most dependabler is basic dentistry paid forby insurance, even thougbh almost half of American adultas have no dental coverage, according to the . “Am I surprisedf by the rankings?
Quite honestly, yes,” said Cathhy Mudge, chief administrative officer forthe association. “Somee dentists are seeing an increase in theirpatient I’m not sure why. Maybe people are afraid they’ll lose theif benefits,” she said. “Typically, at the end of the we see a spike.” One thing everybody agrees on: Fewer patients are going for priceyoptional “I’ve seen a 15 to 20 percentr drop in anything elective,” said Gabrielle Rasi, owner of in Carmichael. A full set of veneerx for a bright smilw on six front teeth costs she said.
“A couple of years ago, patients used home-equit loans or credit cards to payfor this,” Rasi “Now, it’s ‘I thinkl I’ll wait.’ ” Aboutr 75 percent of Rasi’s business is a “meat and potatoes” practicre of basic dentistry for patients covered by “Cleanings every year; fillings every year or two. Maybed a crown,” Rasi said. “That’s what’s keeping me in And it’s growing. I still get new patients all the time.
” But Rasi is more carefulo with expenses these Dentists have to pay rent ora mortgage, emploty staff, buy professional insurance and cove r other overhead costs such as lab fees and materials. Rasi is williny to pay more to keepqualitg staff, though she scaled back hourx for one worker who then left because she needed a full-time job. The “spa” part of the business won’g be cut anytime soon. The officse offers massager pads onpatient chairs, paraffin treatments for the eye pads, ear plugs and relaxation tapes.