Here’s a summary of the latest economic outlook for dentistry according to the American Dental Association’s Health Policy Institute (ADA HPI):
Good News for Appointments:
Wait times are down! New patients waited an average of just over two weeks for appointments in the first quarter of 2024, a significant decrease from nearly 23 days in June 2023.
Staffing:
Hiring is getting easier! While dentists are still looking for dental assistants, hygienists, and administrative staff, the difficulty of recruiting these positions has lessened compared to 2023.
In 2023, 96% of dentists found it extremely challenging to hire a hygienist, but that number dropped to 89% in 2024.
Similarly, hiring dental assistants became less difficult, with 86% of dentists reporting it a big challenge in March 2023 compared to 77% in March 2024.
Overall Economic Outlook:
Dentists are cautiously optimistic about the U.S. economy overall, with steady confidence in the dental sector and their own practices.
If your dental office is experiencing rising costs and staffing frustrations, you are not alone. In January 2023, Dental Economics and The Levin Group conducted a survey on dentists’ challenges in 2022 (Levin, 2023). That survey highlighted dentists’ most significant concerns, as shown here:
The 2023 Dental Economics Fee and Staffing Survey, conducted by Dental Economics and Endeavor Business Intelligence collected data on staffing challenges and fee schedules by region and practice location (Urban, Suburban, Rural). In this survey, Midwest region dentists reported the following:
79% of respondents had difficulty filling hygiene positions, 58% had trouble hiring assistants, and 28% struggled to hire office managers;
87% of respondents stated staffing costs negatively impacted their practices to varying degrees.
According to DeStefano (2023) hygienist shortages impact the timeliness of care and dental assistant shortages slow the practice’s pace resulting in an overall decrease in office production. Additionally, these shortages negatively impact the timeliness of patient care. Offices suffering from inadequate front office coverage may experience lapses in insurance filing and inefficient patient communication, resulting in lost opportunity and weaker profitability. To stress this disadvantage, DeStefano (2023) reveals that the average dental practice collections were 10% lower in 2023.
Roger Levin of the Levin Group argues (as cited in DeStefano, 2023) that productivity is further impacted by failure to align dental fees with price increases to maintain healthy profit margins. Levin supports annual fee updates of approximately 5% to keep up with rising inflation.
Overall, the Dental Economics Fee and Staffing Survey found that 65% of participants had increased fees within the last year. Multilocation practices were the most likely to have updated fees within the last 6 months. Interestingly, fee-for-service model or membership model practices were more likely to update more frequently than practices operating under a PPO model. Dr. David Rice, chief editor of Dentistry IQ states that PPO practices may be hesitant to raise fees since they operate under contract limitations, but reminds that this hesitancy prevents PPOs from updating reimbursement tables resulting in lower reimbursement for the practice itself and for nearby practices (DeStefano, 2023).
Although submitting an updated fee schedule is no guarantee of increased payer reimbursement, Levin remarks that it provides payers the opportunity to re-evaluate their fees (DeStefano, 2023).
If your office has not recently performed a fee update, the 2023 Fee and Staffing Survey provides a fee table by region for many dental CDT codes to help you align your fees more appropriately. You can find the survey results here Dental Economics 2023 Fee and Staffing Survey.
As a business owner, you probably have heard of the new reporting requirement mandated by the Corporate Transparency Act (CTA). The CTA creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to discourage using shell companies and other opaque corporate structures for illicit activities, such as financing terrorism, money laundering, and other financial crimes.
Because advising clients regarding compliance with the Act may be considered the unauthorized practice of law, we are unable to assist with this filing. Therefore, we recommend you comply with this filing requirement by either
Consulting your legal counsel for assistance;
Reporting directly to the Financial Crimes Enforcement Network (FinCEN) and complete the necessary information online through their website (here); or
Contacting FileForms * to assist with the filing (FileForms.com).
*FileForms is a company who represents they can assist with the completion of this process. Whalen CPAs does not validate the offerings of this company.
Happy 2024, Whalen dentists. January is a great time to re-evaluate your practice’s insurance plan participation. To assist dentists with this task, the ADA has developed several documents designed to streamline the process. These include the following:
These documents are provided here to help you get started quickly. Performing an insurance audit can help you determine which plans you should keep and which ones to eliminate. Paul Bornstein, writing in Dental Economics, gives these additional tips:
Read your state’s dental practice act to make sure that you understand all of the regulations on dental practice. Ohio’s Dental Practice Act is found here. Current Ohio Dental Practice Act
Read your contracts and provider manuals before you sign and re-evaluate yearly. Less than 10% of dentists read these items before signing their contracts!
Medicaid regulations are state-dependent, so be sure to carefully read the contracts and manuals because what is legal in one state may constitute fraud in another state.
Acquaint yourself with all required documentation under PPO contracts and federal Medicaid laws.
Make sure you sample audit your patient records to ensure that the patient record is complete to the state’s practice act requirements and notes are signed. Medicaid excludes unsigned claims from consideration, as do some private dental payers.
Whalen CPAs is dedicated to helping you improve your practice’s operational efficiency. We are here to help with questions you may have regarding this information. For assistance, reach out to us here.
Please be advised that the ADA has released an updated insurance claim form for 2024, which will go into effect on January 1, 2024. To ensure seamless processing of your insurance claims and avoid any delays, it is crucial to update your practice’s insurance claim software to accommodate the new form.
Key Points to Note:
Recommended Update: All offices, regardless of using automated forms or manual processing, must update their systems to the new 2024 claim form to prevent claim processing delays. Software Updates: Offices with automated insurance claim submission software should verify with their respective software vendors to ensure they have subscribed to or purchased the necessary updates to incorporate the new form. Importance of Timely Updates: Neglecting timely software updates could lead to claim processing delays and potential financial implications.
Resources for Assistance:
Sample Form: Access the new 2024 insurance claim form here: Sample Form Form Filling Guide: Refer to the comprehensive PDF guide for detailed instructions on filling out the new form: PDF guide Video Overview: Watch the informative video that provides an overview of the changes and demonstrates proper form completion: Link to Video For more information: Here is the information that the ADA has released. ADA Link
We highly recommend that you prioritize this matter and take the necessary steps to update your insurance claim software well in advance of the January 1, 2024, deadline. By proactively addressing this requirement, you can ensure timely processing of your insurance claims and avoid any disruption to your practice’s cash flow.
