Outlook gives dentists reason to smile
By Michael Wentzel
Rochester (N.Y.) Democrat and Chronicle
In a field where the fear factor can be high, Dr. John Tumminelli has only confidence in the future.
Annette Lein • Gannett News Service
Just six years after graduating from dental school, and almost four years after joining an established practice, he is seeing revenue grow 10 percent a year.
Dr. John Tumminelli is partner in a busy dental practice in Brighton, N.Y., that plans to double its workload. Dentists' average income grew from $69,920 in 1986 to $173,140 in 2001.
"I have a good partnership and a solid practice. My income exceeds my expectations at this point," Tumminelli said. "I love taking care of my patients. I am so blessed and so lucky."
In spite of economic downturns and cutbacks in healthcare benefits, most dentists have successful businesses. Consumers with more awareness of oral health and a growing fondness for cosmetic improvements have pushed demand to a new high.
In 2002, Americans spent $70.3 billion on dental care, including payments by insurance companies. Independent practitioners' net incomes have risen steadily since 1986, when general dentists made an average of $69,920, the American Dental Association says. In 2001, the average net income of general practitioners was $173,140.
"This is a great time to be a dentist, and a great time to be a dental patient," said Dr. Joseph Viola, chairman of the New York State Dental Association Ethics Council.
The number of dentists retiring in the next two decades is expected to exceed the number of dental school graduates. Meanwhile, the cost of operating a practice and the cost to patients continue to rise.
"Every dentist runs his own hospital," Viola said. "We build our surgical rooms. We put in equipment. We hire and train staff. We keep up on our education." Those costs get more expensive every year, he said.
The average cost of a dentist's education has risen, too — about 60 percent in the last 10 years. When Tumminelli graduated from dental school at the State University of New York at Buffalo in 1998, he had debt of about $100,000, which is typical.
His decision to seek a partnership illustrates another trend. Forty years ago, almost all dentists started from scratch. Today, few start practices alone. Those who do tend to want partners as they expand their practices or plan for retirement.
"Dentists today have to focus on managing the business and people," said Dr. Chester J. Gary, a dentist and lawyer who teaches practice management at SUNY-Buffalo. "They have to learn corporate and personnel skills. They have to be able to run and develop a business."
From 1994 to 2001, the average net income of general dentists grew about 47 percent, while specialists' income grew almost 90 percent, says the ADA.
Prices for dental services continue to increase faster than inflation, according to the ADA. In 2003, they rose 4.1 percent, compared with 2.3 percent for goods and services in general.
But dentists aren't making as much as the public may think, said Dr. Les Seldin, who edited the ADA's 2001 "Future of Dentistry" report. Overhead takes 70 percent of a general practitioner's gross billings, he said. "That means that for every $100 billed, a dentist walks away with $30 before taxes."
