The Consumer Price Index went up 5.4% in July, the largest jump in 13 years. In addition, according to Moody’s Analytics, the U.S. is experiencing “the strongest wage growth in a quarter century.”
Inflation is overhead on steroids. Dental staff salaries and benefits are the largest overhead line items in dental practices.
It’s time to analyze the numbers in your dental practice and raise fees. You want to be fair to your patients, of course, and large increases for fee-for-service patients can lead to pushback. The goal is to proceed methodically, raise some fees more than others; but make sure that the average increase keeps the overhead monster from eating into your profits.
You cannot afford to “hold the line” on fee increases when your suppliers and your staff are demanding more from you. I’ve been going over numbers with my dental clients and making recommendations. Plan now and put a new fee schedule in place no later than January.