NORTH CAROLINA, THE BATTLEGROUND FOR STATE DENTAL BOARDS VS DENTAL MANAGEMENT COMPANIES

Dental Boards in the majority of states require that dental practices be owned by a licensed dentist(s).  As the number of dental management companies (DMCs) has grown, the question has arisen:  Are these DMCs actually the owners of these practices since they set fees, production goals, etc?  After a costly legal battle between the NC State Board of Dental Examiners and a group of DMCS, the North Carolina legislature voted to allow the NC Dental Board to oversee contracts between dentists and DMCs.  Though details of the oversight process were not included in the bill, a six-member task force was appointed, including two members from DMCs, to make recommendations concerning oversight regulations by January 2013.  One detail that was in the initial bill was that DMC contracts must include a warning to dentists to seek legal advice before signing a contract.

The conditions under which the NC Dental Board can oversee DMC contracts should be finalized by spring 2013.  The legislation may well serve as a template for other states.

ANOTHER THOUGHT ABOUT FEE INCREASES

In a recent blog we considered fee increases for the year.  If your practice has historically adjusted fees in the fall, now is the time.  We mentioned that the Consumer Price Index lists the 2012 U.S. inflation rate at approximately 3%.

Whether you agree or disagree with the Consumer Price Index report, following is an interesting summary of some annual price increases for basic needs occurring in the U.S. between 2000-2010:

            Gasoline - 10.9% increase from 2000 - 2010 (and more than doubled since 2009)

            Eggs – 6.5%

            Ground beef – 4.8%

            Bread – 4.2%

            Electricity – 3.7%

Keep in mind that this short list notes increases as of 2010, not 2012.  The source, the U.S. Bureau of Labor Statistics has not yet listed the last two years’ increases for basic items every family needs.

Though it is against FTC regulations to collude with colleagues in your area for the purpose of setting fees, there are many on-line sources listing dental fees per area, zip code, specialty, etc.  Simply search, for example, “dental fees by zip code” or go to www.ada.org to order the 2011 Survey of Dental Fees, item code: SDFG-2011/SDF-2011D.  The survey is a free download for ADA members.  The survey is accompanied by a disclaimer that it is not to be interpreted as constituting a fee schedule in any way since the ADA cannot quote or set dental procedure fees.

REMINDER ABOUT FEES

Many dentists choose to adjust fees in the fall.  If you’re among this group, now is the time to consider doing so.  Even if you do not increase fees, it is good business practice to review them annually.  This year some practitioners are reluctant to increase fees due to the economic climate.  If you are deliberating, discuss the decision with your practice management consultant or your accountant.  You may receive advice about raising fees selectively rather than across the board.

A general rule of thumb for years has been to increase fees by 1.5 to 2 times the inflation rate annually.  Sometimes that rule of thumb leaves dentists scratching their heads because the inflation rate is inconsistently analyzed and reported by various sources.  Additionally, some sources omit food and fuel costs when calculating inflation rate.

The latest Consumer Price Index information on-line lists the current US inflation rate at approximately 3%; however, that was prior to the current frequent hikes in fuel costs, the Midwest drought that has devastated the nation’s corn crop, etc.