Dental practice: prices, production and profits.
BACKGROUND
This article explores the relationship of dental fee increases, physicians' fee increases and overall price increases. The author uses the applicable consumer price indexes (CPIs) for the past 30 years to determine whether any similarities in behaviors exist. The relationship between office operating costs, production and net income also are explored.


CONCLUSIONS
Although there are quantitative differences, the CPIs move in parallel fashion. An abrupt change in the overall trend of all CPIs to a decrease in the degree of increases occurred in the 1980s and has continued. Increased production by dental offices is the key strategy being used to maintain office net income.


CONCLUSIONS
Dentists would be wise to track the CPIs for trend information that could be useful to them as they manage their practices and devise strategies to maintain net income.
Guay
Albert H
AH
American Dental Association, Chicago, Ill. 60611-2678, USA. guaya@ada.org
D004467:Economics; D017598:Efficiency, Organizational; D005250:Fees, Dental; D005376:Financial Management; D017048:Health Care Costs; D006801:Humans; D007182:Income; D011215:Practice Management, Dental / Q000191:economics*