Dentists confident but only in short term
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- Published: Friday, 12 July 2013 07:26
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JAS MATHAROO, Director of Nice Teeth Limited, writes: ‘Those dentists taking part in our survey have always shown the biggest disparity between short and long term confidence and 2013 is no different. While that remains true for the short term, confidence for the longer term prospects of dentistry have fallen almost as low as GPs. It does still come back down to stability. The profession is not feeling particularly stable at the moment. NHS dentists have typically had better profitability than their private counterparts over the years but a third of us don’t expect to continue this run, and another 33 per cent are unsure.
These increased financial pressures are inevitable. Dentists know that they are going to have to fight harder for contract values and that times are getting harder but being aware and being prepared are two different things. Once the latest NHS contracts have been negotiated things may well settle down and optimism may return. The sector needs financial assurances based on their contracts, and the ability to deliver them to return to confidence. We haven’t enjoyed stability for a long time. I do think that although NHS dentists have enjoyed the larger profits over recent years, we may see an increase in private dentistry. The model is developing and younger dentists are getting a lot more advanced in terms of marketing and recruiting patients.
It is interesting to see the increase in practices which now have a partnership agreement in place – up to 74 per cent. There has definitely been more awareness around this issue and the financial climate has made partners tighten up on this along with parallel advice from the accountants and lawyers. Despite the reduced confidence, many dentists have learnt some harsh lessons during the recession and tightened up on many financial practices that should put them in stronger position for the future.’
GRAHAM REW,Specialist Dental Accountant at Hazlewoods and NASDAL member, writes: ‘The single most telling response in the entire survey for me was the lack of confidence in the proposed new NHS dental contract being adequately funded. Not a single respondent said they were either ‘very confident’ or ‘fairly confident’ in this, and it was an equal 33 per cent split between ‘not very confident’, ‘not at all confident’ and ‘don’t know’. Interestingly however whilst there is little confidence in the NHS Contract being adequately funded there also appears to be very little short term enthusiasm regarding the conversion to Private Practice.
Approximately 80 per cent of the respondents in the survey were from practices with NHS income therefore with the NHS contract value having such a bearing on the long term financial future of so many practices, you can see why the overall confidence is where it is. Short term, dentists appear to have a reasonable level of confidence but long term the levels have dipped to their worst in four iterations of this report.
There is a general feeling among dentists that we have come through the worst of the recession. They’ve survived – fewer are experiencing NHS claw backs – and optimism in respect of profit levels being maintained remains good for the time being, together with a significant level of confidence still that NHS Practice Profits will continue to out perform those of Private Practices.’
Reference: Lloyds TSB Commercial Banking: Healthcare Confidence Index
http://businesshelp.lloydstsbbusiness.com/assets/pdf/healthcare-index-spring13.pdf
We all know for certain that there will be no more money in the NHS system, and most private dentists will be more positive about the next few years following the current downturn.
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