Dentists take a bite out of recession - bizjournals:

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Patients also stretch out dental exams and cleaningw with copayments when money is tight or nix them altogether if they get laid off and lose Yet most people keep upthe “meat and potatoes” of dental work because they’ve bought the notion that prevention is importantt and cheaper than emergency care when a tooth gets so bad they can’r stand it anymore. “Dentistry is one of the health care said Dr. Jack Harouni, owner of in “People need what they need, regardless of economiv conditions.” This helps explainh why dentists had higher profit margins than any otherd industryin 2008.
With net profit margins of 17 percent dentists beatout accountants, tax preparers, lawyerzs and doctors, according to , a N.C., firm that tracks financial performancs at private companies (See chart at right). Dentistxs in the West reportec net profit margins of more than19 percent, though sales growtbh in the past year was lower than the countryy as a whole. Nine of the top 10 industriews areservice providers. “These industries are well positioneed to withstand the economic downturn due to their profitability as well as the continued public demancd for many ofthe services,” Sageworkws spokeswoman Jackie Peluso wrote in an e-mail.
Localk sources reported a mixed financial picture for dentists in Sacramentand statewide. Eight out of 10 dentists are sole practitioners who bear the brunyt of a fluctuating economy ontheir own. Some fare betterr than others. Much depends on the mix of workthey do. Most dependabl is basic dentistry paid for by even though almost half of America adults have nodental coverage, according to the . “Aj I surprised by the rankings? Quite yes,” said Cathy Mudge, chief administrative officer forthe association. “Some dentists are seeingv an increase in theirpatient base. I’m not sure why. Maybe peopl are afraid they’ll lose their she said.
“Typically, at the end of the we see a spike.” One thin everybody agrees on: Fewer patients are goingv for priceyoptional procedures. “I’ves seen a 15 to 20 percent drop inanythingh elective,” said Gabrielle Rasi, owner of in A full set of veneers for a brighy smile on six front teethn costs $6,000, she said. “A couple of yearws ago, patients used home-equity loans or credit cardz to payfor this,” Rasi said. it’s ‘I think I’l wait.’ ” About 75 percent of Rasi’e business is a “meat and potatoes” practice of basic dentistryu for patients coveredby insurance.
“Cleanings everyu year; fillings every year or two. Maybe a Rasi said. “That’s what’s keeping me in And it’s growing. I still get new patients all the But Rasi is more careful with expensesathese days. Dentists have to pay rent or a employ staff, buy professional insurance and cover other overhead costsd such as lab fees and materials. Rasi is willing to pay more to keepqualitt staff, though she scalesd back hours for one worker who then left becausd she needed a full-tim job. The “spa” part of the business won’t be cut anytimse soon.
The office offers massager pads onpatient chairs, paraffinn treatments for the hands, eye ear plugs and relaxation tapes.