Monday, June 17, 2013

Why the Cost of Dentistry is so Expensive: “The rise of the machines” (I know I used this chapter title in the previous article, but it is perfect for the next segment)


As a society we are now dependent on technology and the machines that it has given rise to. We love our technology so much so that people who may not have money to spend on things necessary will spend money on the newest cell phone, iPad etc… But technology is not free, the latest profit making business models are all based on selling a product, then selling the services associated with it. The services are the hidden money makers for these technologies. So much so, manufactures will sell the product (hardware) for cheap or often give it away.         

The cell phone is the classic example, money is made on the phone itself, but the apps you purchase, the service plans, and all the accessories are the hidden costs. If you compare the expenses of a typical family in 1970   to a modern typical family you will see how the small but ubiquitous charges for a technology have raised the cost of living. The following is a off the cuff list of things we need to pay for yearly or monthly in our personal lives that the previous generation did not:

                Service or Revolving Monthly or Yearly Expenses

Cable

                                Internet Access

                                Cell phone

                                Netflix

                                Anti Virus plans

                                SiriusXM

               

                               

                Products that require constant upgrades and replacement to keep up with changes

                                Cell phones

                                Video Games

                                iPad, iPod

                                Computers, lap tops, wifi,

                                Software, upgrades (some require yearly contracts such as Quicken)

                               

 

Back to the cost of Dentistry…

 

                Even more so than in our personal lives, technology brings many added expenses to a dental practice. And, furthermore, unlike personal items where you can make a choice to indulge or not, in our field if you don’t keep up with technology you are considered (and probably so) an out-of-date dentist, and who wants to go to a dentist who is still practicing like it is 1970. Lets touch on some of the larger technology expense categories, keep in mind, I love most of these new products and what they can do, but I am demonstrating in this article why the cost of delivering dentistry (or medicine) has become so inflated in recent years.

                Digital X-rays:  a tremendous technology that improves diagnostic capabilities while reducing radiation exposure. We were one of the first practices to go completely paperless and digital x-rays were the icing on the cake. But the salesman marketed it as a cost saver when compared to traditional film x-rays. The argument was you didn’t have buy film x-rays, and the cost of developing them was gone. I’ve crunched the numbers and that just isn’t factual. First of all, the initial cost of a digital x-ray system includes upgrading your current computer system and expanding it to include coverage in each operatory that x-rays are needed. Then the costs of the sensors are about $6,000 each and they break occasionally. Of course there is a monthly service contract needed in case something goes wrong, because there is no way you can repair or figure out anything yourself on these products.   Digital x-rays take up a ton of memory so you need to large capacity servers to house all the files. And lastly they all need to be backed up, and when the backup file is so large you have to use an offsite back up company to ensure all your records are safe.$$$

No comments:

Post a Comment