WHAT ABOUT A FEE INCREASE FOR 2015?

The Consumer Price Index (CPI) measured inflation at 1.7% between September 2013 and September 2014.  However, dental practice overhead costs rose at a significantly higher rate due to several factors.  Thanks to the 2.3% sales tax implemented on medical devices under the Affordable Care Act, costs for new dental instruments and equipment have increased approximately 5%.  Staff compensation packages have increased due to raises or periodic bonuses plus dramatic increases in staff health care plan premiums, 20% or more in many states.  Further, as an increased number of dental offices have chosen to accept managed care plans in order to stay fully busy, reduced managed care fees have cut into profit levels.

With these and other factors in mind, practice management advisors concur that an appropriate fee increase for 2015 will be 3% for those offices which have maintained a fee schedule commensurate with their area.  Those offices which have neglected fee adjustments for longer than a year may need a more significant increase in order to “catch up” and maintain a reasonable level of profit.  Annual fee increases are advised for individual practices.  Additionally, fee increases raise the fee profile for all practices in a certain area, thereby influencing the fee schedules offered by managed care company contracts and state Medicaid reimbursement levels.