Dental News - Dentists report financial impact of COVID-19 on their practices

Dental Tribune USA

Wed. 15 April 2020

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The COVID-19 crisis has caused a significant financial impact on dental practices, with collections for the vast majority of dentists less than 5 percent of what is typical. This is according to a second round of results from an ADA Health Policy Institute poll.

The poll, from responses gathered during the week of April 6, was taken by 6,441 dentists in private practice, a response rate of over 50 percent.

“This invaluable data gives an accurate picture of what dentists are facing and will help shape the ADA’s response,” said Marko Vujicic, PhD, chief economist and HPI vice president.

In the second round of polling, 79 percent of dentists reported that their practices were closed except for emergency patients, and 18 percent are closed completely, indicating that the vast majority of dentists are complying with Centers for Disease Control and ADA guidelines. Outlier states were Vermont and Arkansas, with 38 percent and 31 percent of practices fully closed, respectively.

Pennsylvania saw a dramatic change from two weeks ago. For the week of March 23, 74 percent of dentists in Pennsylvania reported that their practices were fully closed, but that percentage dropped to 29 percent this week after the state relaxed an earlier complete ban on dental procedures.

Compared to the first round of polling, the biggest change relates to staffing. Two weeks ago, 27 percent of dentists were paying their staff fully compared to 11 percent this week. Conversely, the percentage not paying any of their staff rose from 28 percent to 44 percent.

This week’s poll introduced a question about what actions dentists would consider to ensure the sustainability of their practices if the current practice restrictions continue. Through the end of April and June, the majority of dentists reported that they would focus on cost cutting, including adjusting staffing and borrowing money to address shortfalls. But if the situation were to continue through the end of August, 46 percent said they would consider closing, selling or filing for bankruptcy.

“The data tell a clear story. The early, proactive response by the dental profession to safeguard the safety of patients and help flatten the curve and preserve PPE has, as expected, impacted dental practices in a major way,” Vujicic said. “Short-term financial relief from the Coronavirus Aid, Relief and Economic Security Act, dental insurers and other groups as well as the enhanced use of teledentistry could help ease financial shortfalls in the short term. What is clear at this stage, however, is that the coming two to three months represent a critical juncture for the economic sustainability of many dental practices.”

HPI will continue to track data every two weeks in every state to provide a glimpse into how the pandemic is unfolding. Dentists who wish to participate can access the poll on ADA.org. Complete results comparing the week of March 23 and April 6 are posted on the HPI site. The ADA has interim guidance and other information online at ADA.org/virusresources.

(Source: ADA)