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Patient Attraction Episode 1075
Storm clouds are gathering on the horizon for dentistry, and not enough dentists have noticed. Four incredibly strong forces are in play that will combine to cause a dental armageddon, the likes of which we haven’t seen. Dentists who don’t prepare risk having everything they’ve struggled to build swept away. I’ll be right back to tell you more about what you’re facing and how you can safeguard your livelihood. Stay tuned.
– Thanks for watching the Patient Attraction Podcast™.
– I’m Colin Receveur.
– The vast majority of dentists are probably aware of the 4 forces I mentioned.
– Those are corporate dentistry, new dental school graduates, decreased insurance reimbursements, and economic uncertainty.
– But for some reason, people haven’t connected the dots.
– Those forces don’t work in isolation – they combine with and reinforce each other.
– And this is definitely a case where the whole is much greater than the sum of the parts.
– Corporate dentistry follows the money, so no market with untapped potential is safe.
– And with the economies of scale that chain practices have, they’ll undercut dentists on price and availability every time.
– That’s about 80 percent of your market.
– Corporate dentistry is a huge challenge to overcome, but the threat doesn’t end there.
– New dental graduates are going to work for the chains in record numbers.
– That’s partly driven by the sky-high cost of dental school, leaving graduates with an average debt around a quarter of a million dollars.
– Those graduates are highly motivated to pay down that debt as quickly as possible.
– With starting salaries well into 6 figures, corporate dentistry offers an excellent means of retiring that debt quickly.
– New graduates fuel the corporate machine, and when they’ve paid off school debt, some of them will open new corporate practices.
– Others will open their own practices.
– You’re facing increased competition from two sides, and that’s not good.
– But the threats to your livelihood don’t end there.
– 80 percent of your market is motivated by price, discounts, and insurance acceptance.
– You’ve already seen that corporate can undercut you on price.
– But insurance reimbursements are declining, and that trend shows every indication of continuing.
– Price- and insurance-driven patients will turn to the lowest-cost dentist.
– If you cut your prices to compete, you’ll get less from the insurance company and less from the patient.
– Basically, you’ll get less at a time when you’re facing increased competition.
– That’s a downward slope that you’ll struggle to get off.
– But as if all that wasn’t bad enough, there’s the threat of another economic recession.
– And if you know anything about economics, you know that another recession is inevitable.
– It’s only a question of timing.
– Many economists are pessimistic about continued growth in the near-term.
– Right now, commodities are indicating that another recession may be coming.
– And when a recession is around the corner, people tend to hunker down financially.
– Few people have forgotten the impact of the Great Recession of 2009, and especially not dentists.
– Practices have barely recovered from the losses of the last downturn.
– Most can’t afford another drop in revenues for an extended period of time.
– Those 4 forces, which I’ve named the Four Horsemen of Dentistry, are coming for your livelihood.
– If you try to fight them on their own terms, you’ll lose.
– I’ve provided a deeper analysis of what dentists will face, and solutions to the dilemma, in my new book.
– It’s titled “The Four Horsemen of Dentistry: Survival Strategies for the Private Dental Practice Under Siege.”
– It’s available at www.PracticeUnderSiege.com.
– I have to admit that sales have been brisk.
– Other dentists, including your competition, are preparing to face the coming storm.
– Don’t let another day pass without ordering your copy.
– Because it’s not a question of whether you’ll be facing a dental armageddon, just when.
– Whether you know it or not, you’re at war.
– And without the information in my new book, you may very well lose.
– Join me for our next podcast.
– Until then, keep moving forward.