RAISE FEES IN 2013

According to a recent practice management survey, just over 65% of dentists raised fees in 2012, and the increases that were made were smaller than typical, most well under 3%.  Additionally, only about 50% of respondents even consider an annual fee increase now.  These findings demonstrate that many dentists are ignoring the recommendation of practice management advisors to increase fees at least annually by more than the inflation rate in order to meet the ever-increasing costs of operation.

According to the Consumer Price Index (CPI), inflation was 2 % in 2012.  Inflation is projected to increase significantly in 2013, and dentists will also be paying the new 2.3% excise (sales) tax on medical devices instituted by the federal government to help pay for health care reform.  This tax will increase the cost of most dental equipment and instruments, dental supplies, and lab fees.  Lab fees will increase because the raw materials used to make the items are listed as taxable medical devices and therefore, subject to the tax.

Consider, therefore, two sound management decisions in 2013:  (1) adjust your fees to approximate typical fees in your zip code area, and (2) once you know that your fees reflect the quality of care in your office and fee levels in your area, raise them by 3% to 4% for 2013 to meet inflation, increased taxes, and other escalating costs.

Suggestion:  Dr. Charles Blair’s comprehensive Revenue Enhancement program will help you determine if your fees are appropriate for your zip code (first three digits).  For more information, go to www.practicebooster.com or call 866-858-7596.