Dentists are most optimistic of health professionals
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- Published: Thursday, 21 April 2016 07:40
- Written by News Editor
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Lloyds Bank has published its Healthcare Confidence Index which gives insight from primary healthcare professionals. It shows that dentists continue to lead the way in terms of optimism, perhaps reflecting the fact that their sector benefits from more non-NHS income. However, there is a continued concern about long-term funding of the NHS dental contract with 81% revealing doubts. With over a third (37%) of dentists now wanting more private work, the Index suggests the trend towards becoming privately funded will continue.
Alan Suggett, Dental Business Unit Partner wrote: “I'm slightly surprised to see that dentists have largely maintained their levels of optimism since the last edition of the survey, given the ongoing discussions concerning the reformed NHS contract. This is expected to be introduced in 2018, meaning that some within the industry are unsure of their ability to maintain profits at their current levels. Whilst overall satisfaction has maintained a steady level, some creeping uncertainty is reflected in the responses to some of the survey’s questions, with more than half of participants feeling that the quality of NHS services will decrease in the next five years.
“The survey results reflect some degree of doubt that the reformed contract will be funded at the level that dentists expect, leading some to ask questions about their ability or willingness to remain in the sector. This view is underlined by the fact that, when asked whether they still plan to be working in healthcare in 10 years’ time, there was a noticeable swing from ‘definitely’ to ‘probably’ when compared to last year’s edition of the Index.
“It’s my view that there is a huge difference in confidence between dentists offering NHS services and those focusing on private work, and whilst NHS goodwill is traditionally significantly higher than private, this will probably not be the case in five years' time. The survey supports this theory, and shows that more than a quarter of respondents feel that private practices will be more profitable over the next five years, compared to just seven per cent who feel that NHS will be most profitable. However, 56 per cent feel that a mix of NHS and private services will perform best, showingthat a setup which offers ‘the best of both worlds’ remains appealing to practice owners.
“Since the completion of the survey, it’s interesting to note that the Chancellor has announced new reforms aimed at reducing the cost of living for families, which has pinpointed clarity of dental costs as a target area, and more worryingly for NHS dentists, time limitation of contracts and removing barriers to entry. The effect of the implementation of this policy, together with the continued development of the reformed contract, remains to be seen, and it will be interesting to see how dentists’ confidence is affected in the coming year.”
Az Hyder Owner and Principal Dental Surgeon, Burgess & Hyder Group commented: “This year’s Index results have revealed a marked difference in the dynamics that influence confidence when you compare dentists who offer NHS services with those who focus on private treatments. NHS confidence is wavering due to uncertainty about the final reformed contract, despite the fact that more details have recently been revealed through prototype practices trialling the proposed changes.
“From speaking to industry colleagues, it’s clear that the main concern is whether the prototypes are financially sustainable. These worries are evidenced by those surveyed, who feel that financial pressures are set to rise, and with an increased focus on regulation, governance and performance management, costs will increase further, too.
“Many years ago, offering a mix of both NHS and private treatments was difficult. However, it’s now easier to offer both elements of service, and there is a perception that private treatments have to be offered to ensure patient choice. The results show that more than half (56%) of the dentists surveyed feel that a mixed service will be the most valuable over the next five years, enabling practices to enjoy the best of both worlds.
“Mixed practice is popular because the financial structure of a practice can be underpinned by NHS fixed contract value, which may be less susceptible to outside economic forces and provide stable income for dentists. This can be further complemented by offering private items to existing patients – recently there has been a rise in treatments relating to clear braces, whitening and facial rejuvenation. There is indeed a growing demand for cosmetic work, which is booming as the economic recovery continues, with dentists able to grow their profits thanks to increased commercial spend.
“Looking ahead, it’s my view that with more younger dentists entering the industry, there is an appetite among them to control their own destiny. The practitioners who have indicated an intention to exit dentistry in recent years have done so already, thanks to goodwill values being at all-time high. Therefore, the outlook of the industry is being dominated by a more stable demographic, who are looking to buy, develop and grow their businesses. Ultimately, their optimism is likely to be determined by the expected introduction of the reformed contract beyond 2017.”
The report can be found at http://www.lloydsbank.com/assets-business-banking/pdfs/Lloyds_Healthcare_Index_report_2016.pdf
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