Chasing efficiency, not cutbacks
Rising costs are an ongoing reality for dental practice owners. Staffing and materials are getting more expensive, potentially eating away at the bottom line. Dentists have to figure out how to navigate this environment while maintaining rigorous standards of care for their patients.
Benjamin Lu, DDS, owner of Lu Dental Care in Alhambra, California, shared insight into how his practice is experiencing and managing rising costs while keeping patients at the center of what they do.
—Interview by Carrie Pallardy, edited by Bianca Prieto
Cost pressure is a major issue in dentistry and many other industries right now. What costs have grown the most in your practice over the past year?
To backtrack a little bit, the pandemic saw major fluctuations in personnel costs due to the rolling shutdowns. With the ton of pent-up, unmet patient dental needs due to the lockdowns, staffing costs have increased, and that trend has continued to present day.
The most noticeable increases over the past year have been dental materials, lab costs and staffing. Staffing continues to be our largest expense in the dental office, as I'm sure many other dental offices have seen.
Retaining exceptional team members like hygienists and assistants requires investing in fair wages and training. And in a state like California, those costs do continue to rise as well. All across the board, we see rising costs.
How are you approaching cost management? What strategies are working for you?
Our approach is definitely rooted in chasing efficiency. I don't think we've ever had to look into cutbacks as of yet.
Right now, the largest investments we have are in technology, like digital workflows, intraoral scanning, CBCT imaging, basically reducing the amount of visits it takes for a patient to come in and get a procedure done. Those have been paying off for us the most.
We also negotiate with suppliers for predictable pricing. We try to avoid any price spikes. Just like during the pandemic, there will be supply shocks sometimes in the medical materials industry, where things would rise 10%, 20% overnight. We try our best to keep good inventory [levels] to avoid events like that.
We also operate with transparency and clarity. Every treatment plan that we have with dentists, we review for necessity and with a focus on efficiency and precision. That's so far been able to help us manage costs without sacrificing quality of care.
What advice do you have for practice owners who want to manage costs while still providing quality patient care?
Do not chase savings that compromise patient experience. Patients can definitely feel when a practice cuts corners. Instead of that, focus on technology that saves time and improves accuracy and reduces long-term costs.
Keep the team involved in identifying any pain points or weak points, where there's excess or waste. Always ask for feedback from them.
Revisit vendor relationships often. Sometimes vendors are not able to offer the best materials for the best prices. Always have multiple vendor relationships and keep an open line of communication with all of them.
Above all, patient trust is the most valuable asset. When you're transparent about value and outcomes, patients will stay loyal. That loyalty is the best cost stabilizer.
This conversation has been edited for brevity and clarity.
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Dental Bite is curated and written by Carrie Pallardy and edited by Lesley McKenzie.
