F
farmerjeanh
Former Member
Stresses in the practice of dentistry caused by current economic and social shifts and their effects
I have a theory (with a long footnote, see below) that some of the current increase in dental phobia may be down to dentists in the US being forced to lie to patients constantly in order to make as much money as possible, and this deceit being perceived on a conscious or subconscious level by the patient. Dental professionals are under great stress, is that stress being transmitted to the patient? Are we "barking up the wrong tree" here:
Economic models of dental services and pricing are based on supply and demand curves. The demand curve is based on the common sense law of demand. This states that, all else being equal, as price falls the quantity demanded rises and conversely as price rises the quantity demanded falls. In simple terms, if something is too expensive you buy less of it, and if its cheap people buy more. The demand curve is thus a downward curving graph of quantity (horizontal axis) versus price (vertical axis). The supply curve shows the various amounts of a product or service that producers or providers are willing and able to make available at each of a series of prices over a specific time period. The supply curve is based on the law of supply which states that as selling prices rise, that is the price consumers are willing and able to pay for products or services rises, the quantity of product or service a supplier will make available will rise. In other words if people are paying more for your product you will want to sell more of it, and if the people aren't willing to pay so much you will have to drop your prices to get people buying again. Thus the supply curve is an upward curving graph of price (vertical axis) versus quantity. The optimal price, that is the price at which all products offered are consumed is determined by the intersection of these two graphs. As time goes on, the prices consumers will pay and the prices suppliers charge oscillates around this optimal, equilibrium price. Also the quantity on offer as well as the amount people will buy oscillates around the same point.
The basic determinants of consumer demand are consumer tastes, the number of consumers in the market, consumer's income, the prices of related goods, and consumer expectations. These will shift the demand curve right or left. For example if consumer income goes up, demand tends to increase, and the demand curve shifts right. Conversely decreasing income decreases demand, shifting the curve left. The net effect of a right shift is an increase in the optimum price for the product or service in question, and the net effect of a leftward shift in the demand curve is a reduction in the optimum price.
The basic determinants of supply are: resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, and the number of sellers in the market. Changes in these factors shift the supply curve left or right, thus decreasing or increasing the optimum price.
All the factors influencing shifts in supply and demand have varying degrees of independence and interaction, so predicting these movements is complicated. When employment and incomes are high people may be more concerned about getting the best product or service and not care so much about what it costs. Or they may feel more comfortable indulging changing tastes and fashions than worrying about getting the most for their money. When money is tight it's a different story.
Income is a major factor for most people. If you are rich it might be nothing for you to spend $30,000 to $40,000 for a full set of top of the line implant anchored dentures. If you are poor you will have to settle for cheap plastic dentures or more likely no teeth at all. Obviously, during economic downturns people have less money to spend and are going to see where they can get by spending less, thus reducing the demand for dental procedures. This reduction should induce practitioners to lower their prices. continuing the denture example, new or alternative technologies providing cheaper means to get the same quality at lower prices may arise. These days one can buy denture making kits and create dentures without going to a denturist or prosthodontist. If practitioners start using these lower cost technologies they could offer more services to more people, thus reducing the demand for more expensive procedures and therefore reducing the overall cost of dental procedures. If do it yourself technologies become easy enough to use and if people develop a taste for these technologies, denture prices would plummet.
Increasing diversification of the dental profession results in different tiers of dental workers with different degrees of training and more of less limited areas of practice. For example, denturists just make dentures whereas prosthodontists make dentures, do implants and all sorts of restorative work. This increases the number of suppliers and the number of alternative goods and thus decreases the prices of relevant dental procedures.
Sociological and psychological factors can complicate this picture. If a practitioner views his occupation as high status he may feel entitled to a high price for his service and be reluctant to lower it. Or he/she may have gotten used to a high income and incurred a lot of debt. Servicing this debt requires one to maintain high prices as long as possible to maintain the lifestyle.
Dental insurance greatly affects how much and how quickly prices respond to these factors. Obviously if one has 100% coverage then individuals don't much care what the procedures cost, since the insurance pays it all. This called elasticity of demand. This also provides an incentive for the practitioner to raise prices because he knows the insurance will cover most of the costs to the consumer. As coverage decreases price becomes more of an issue. Also if the insurance industry changes radically confusion about regulations and coverage can result in increased difficulties in knowing how to price services as well as require much additional time and effort to understand the changing insurance procedures and requirements. This is time that is taken away form performing the services and from leisure time as well. this can also lead to misunderstandings by consumers, more uncertainty about costs and even reluctance to get procedures
Did you ever feel you were being railroaded into an unwanted procedure because it was the most expensive option? Could this increasingly common practivce lead to a universal loss of trust in the profession?
I have a theory (with a long footnote, see below) that some of the current increase in dental phobia may be down to dentists in the US being forced to lie to patients constantly in order to make as much money as possible, and this deceit being perceived on a conscious or subconscious level by the patient. Dental professionals are under great stress, is that stress being transmitted to the patient? Are we "barking up the wrong tree" here:
Economic models of dental services and pricing are based on supply and demand curves. The demand curve is based on the common sense law of demand. This states that, all else being equal, as price falls the quantity demanded rises and conversely as price rises the quantity demanded falls. In simple terms, if something is too expensive you buy less of it, and if its cheap people buy more. The demand curve is thus a downward curving graph of quantity (horizontal axis) versus price (vertical axis). The supply curve shows the various amounts of a product or service that producers or providers are willing and able to make available at each of a series of prices over a specific time period. The supply curve is based on the law of supply which states that as selling prices rise, that is the price consumers are willing and able to pay for products or services rises, the quantity of product or service a supplier will make available will rise. In other words if people are paying more for your product you will want to sell more of it, and if the people aren't willing to pay so much you will have to drop your prices to get people buying again. Thus the supply curve is an upward curving graph of price (vertical axis) versus quantity. The optimal price, that is the price at which all products offered are consumed is determined by the intersection of these two graphs. As time goes on, the prices consumers will pay and the prices suppliers charge oscillates around this optimal, equilibrium price. Also the quantity on offer as well as the amount people will buy oscillates around the same point.
The basic determinants of consumer demand are consumer tastes, the number of consumers in the market, consumer's income, the prices of related goods, and consumer expectations. These will shift the demand curve right or left. For example if consumer income goes up, demand tends to increase, and the demand curve shifts right. Conversely decreasing income decreases demand, shifting the curve left. The net effect of a right shift is an increase in the optimum price for the product or service in question, and the net effect of a leftward shift in the demand curve is a reduction in the optimum price.
The basic determinants of supply are: resource prices, technology, taxes and subsidies, prices of other goods, producer expectations, and the number of sellers in the market. Changes in these factors shift the supply curve left or right, thus decreasing or increasing the optimum price.
All the factors influencing shifts in supply and demand have varying degrees of independence and interaction, so predicting these movements is complicated. When employment and incomes are high people may be more concerned about getting the best product or service and not care so much about what it costs. Or they may feel more comfortable indulging changing tastes and fashions than worrying about getting the most for their money. When money is tight it's a different story.
Income is a major factor for most people. If you are rich it might be nothing for you to spend $30,000 to $40,000 for a full set of top of the line implant anchored dentures. If you are poor you will have to settle for cheap plastic dentures or more likely no teeth at all. Obviously, during economic downturns people have less money to spend and are going to see where they can get by spending less, thus reducing the demand for dental procedures. This reduction should induce practitioners to lower their prices. continuing the denture example, new or alternative technologies providing cheaper means to get the same quality at lower prices may arise. These days one can buy denture making kits and create dentures without going to a denturist or prosthodontist. If practitioners start using these lower cost technologies they could offer more services to more people, thus reducing the demand for more expensive procedures and therefore reducing the overall cost of dental procedures. If do it yourself technologies become easy enough to use and if people develop a taste for these technologies, denture prices would plummet.
Increasing diversification of the dental profession results in different tiers of dental workers with different degrees of training and more of less limited areas of practice. For example, denturists just make dentures whereas prosthodontists make dentures, do implants and all sorts of restorative work. This increases the number of suppliers and the number of alternative goods and thus decreases the prices of relevant dental procedures.
Sociological and psychological factors can complicate this picture. If a practitioner views his occupation as high status he may feel entitled to a high price for his service and be reluctant to lower it. Or he/she may have gotten used to a high income and incurred a lot of debt. Servicing this debt requires one to maintain high prices as long as possible to maintain the lifestyle.
Dental insurance greatly affects how much and how quickly prices respond to these factors. Obviously if one has 100% coverage then individuals don't much care what the procedures cost, since the insurance pays it all. This called elasticity of demand. This also provides an incentive for the practitioner to raise prices because he knows the insurance will cover most of the costs to the consumer. As coverage decreases price becomes more of an issue. Also if the insurance industry changes radically confusion about regulations and coverage can result in increased difficulties in knowing how to price services as well as require much additional time and effort to understand the changing insurance procedures and requirements. This is time that is taken away form performing the services and from leisure time as well. this can also lead to misunderstandings by consumers, more uncertainty about costs and even reluctance to get procedures
Did you ever feel you were being railroaded into an unwanted procedure because it was the most expensive option? Could this increasingly common practivce lead to a universal loss of trust in the profession?