As we discussed, even locally in Richmond and in the state, we are seeing a fairly rapid transition from small physician owned practices to a multi-specialty ‘group’ type practice being owned by large hospital chains. My guess is around 70% of the existing physicians are working for a corporate entity in some form or fashion. As the author suggests (see article link below), one day they may be on salary, instead of being paid by procedure codes. Are there implications for dentistry? I would think so, albeit at a much slower pace, due to the difference in business models and lack of affiliation with hospitals. However, as noted in my talk to you, where there is a vacuum, someone will step in and dominate the market. In dentistry’s case, a number of DSMO’s (dental service management organizations) have stepped in to do some plucking. It is most interesting that Canadian pension funds are very interested in those models to their south and have demonstrated that interest by spending considerable sums of money to purchase some of those models. Oh how the marketplace is changing!
READ THE ARTICLE: http://online.wsj.com/article/SB10001424127887323628804578346614033833092.html