“On the average, 65 cents of every dollar collected by the average dental practice goes to pay the cost of overhead expenses. So a 12 percent cut in fees means Delta Dental providers will lose 1/3 of their income… unless they work 1/3 faster.”
When dental patients in California complain that their dentists spend too little time with them, blame Delta Dental.
In order to stay competitive with other discount dentistry brokers which are paying their dentists less and less, Delta intends to cut California dentists’ pay – potentially subjecting patients to rushed dental procedures. It’s a race to the bottom and trusting patients will be the last to find out.
Starting a month ago, the California Dental Association posted a series of notices warning of Delta’s intention later this year to reduce by 12 percent dentists’ payments for intricate handwork in sensitive mouths.
http://www.cda.org/news-events/news/delta-dentals-fee-reduction-cda-california-dental-association
On the average, 65 cents of every dollar collected by the average dental practice goes to pay the cost of overhead expenses. So a 12 percent cut in fees means Delta Dental providers will lose 1/3 of their income… unless they work 1/3 faster.
Since Delta officials enjoy a monopolistic advantage over notoriously timid American dentists – in large part due to the 1945 McCarran-Ferguson Act which protects Delta but not dentists from nasty FTC antitrust lawsuits – there is no resistance to downward pressure on dentists’ fees. In fact, it is in Delta’s interest that its clients assume dentists’ ethics are free. What’s more, the American Dental Association has never stepped forward to dispel the myth, which is counter to the laws of economics and human nature. And it goes without saying that dentists aren’t likely to tell their patients that Delta doesn’t pay enough for unhurried dentistry.
CDA: “It is important to understand that because these contracts are individual agreements between the dentist and Delta, and are written carefully to allow for such fee adjustments, any legal challenge by CDA to their general practice is not likely to be considered by a court. Additionally, antitrust laws require CDA to be careful in responding to or encouraging members on how to respond to actions of third-party payers. However, CDA will monitor the implementation process carefully, leaving no stone unturned on possible legal or legislative responses.” http://www.cda.org/NewsEvents/Details/tabid/146/ArticleID/771/CDA-responds-to-Delta-Premier-fee-reduction.aspx#sthash.RXWc0v3y.dpbs
There you have it. By the CDA’s own admission, fear of the FTC leaves the not-for-profit incapable of warning dues-paying dentists and their patients of the consequences of Delta’s greed. What more does one need to confirm that the M-F Act inhibits transparency in dentistry? Until the unfair law is repealed, the Hippocratic struggle against widespread collusion by discount dentistry brokers who don’t care for patients, will be limited to individual dentists working independently – and untouchable by anti-trust lawsuits. Though I am the only dentist on the internet raising hell about the unfairness, I’ve already got Delta surrounded, and the FTC hasn’t yet called.
Come on out, Doc. The air is fine.
D. Kellus Pruitt DDS
From A TPA:
Having lost a number of public accounts to Delta Dental in CA their symbiotic relationship with Unions is another problem to overcome. Unions through their power in CA demand not only dental benefits but they be provided by Delta Dental who in turn sponsors a number of events and takes care of the unions. If you’re a dentist not willing to accept these cuts your likely to lose most public business, a large source of high benefit dental plans.
