One Wisconsin dentist employs approximately 4.1 staff (e.g., hygienist, dental assistant, office manager, billing person). Nationally, one hygienist is hired for every one dentist, compared to 1.5 hygienists for every one dentist in Wisconsin.
Dentistry’s small-business model makes it feasible to establish practices in rural and urban communities where there is sufficient economic demand. The percentage of a county’s population enrolled in Medicaid – which greatly reduces consumer demand for dental care – challenges dental practices’ financial survival.
Dentistry’s economic impact on Wisconsin is currently estimated at $2 billion.
A small business dental practice can have a direct economic impact of approximately $442,000 on a community. When combined with $206,000 of indirect impact and $629,000 of induced impact, total local economic impact of one dental practice can reach $1.2 million.
Per capita dental care spending is currently about $389. It is expected to rise to $525 by 2020.
According to contacts at two large financial lending institutions, the average cost for designing and equipping a dental office within leased office space is about $350,000 or approximately $75,000 – $100,000 for every clinical room/dental operatory in the practice.
Building a new clinic, which includes owning the land and the structure, costs about $200 per square foot or $400,000 for an average 2,000 square foot office.
These prices depend on the value of the real estate and include some of miscellaneous start up costs, such as legal consultation and supplies. These figures can go higher based on the technology installed by the equipment vendor.
In addition to the loan, banks recommend a line of credit of $25,000 – $75,000 to help with cash flow and enable dentists to pay bills while building a patient base.
Acquisition of an existing practice in Wisconsin usually involves a 50 percent buy-in arrangement. The cost would be $350,000 to $400,000 for a practice producing $1 million to- $1.2 million in gross revenue.
This model was developed by the American Dental Association with the understanding that the best way to decrease the disease burden among the low-income population is not to create more providers who can pull diseased teeth or fill cavities but to empower the patient population to take better care of their own oral health through education. This CHDC is also modeled after the well known and successful community health worker model in medicine.
The CDHC educational program would consist of an 18-month training program after high school. The concept is to recruit students that come from low-income communities to encourage them to go through the program so that they can go back to their communities and help others improve their oral health.
The services they could be delegated to provide (by an authorizing dentist) would include:
The ADA has conducted pilot projects for this model with urban areas, rural areas and Native American tribes in different places in the United States and there has been one that has been employed through the Oneida tribal clinic in the Green Bay area for some time. The CDHC that works at Oneida is also a dental hygienist so there is an opportunity to utilize the skills of a dental hygienist who would also be attracted to working in certain community health settings.
The important component of the CDHC is to reach people where they are and not anticipate that they will seek out care in a dental office for the dentist and the staff to educated them in the practice but to educate them and provide basic services to them in community locations and then to tie back to a dental clinic for restorative and other comprehensive care needs. The Oneida tribe is very pleased with the work that is provided by this CDHC and there is some potential for the WDA to learn from their experience to develop this model into one that can be more fully implemented in other areas of our state while also upholding the standard and quality of dental care for the public.