INVESTMENT IN ODA YIELDS AMAZING RETURNS
Let’s all be clear about the 93% fee increase that started Jan. 1, 2024 for Ohio dental Medicaid. It would never have happened without the efforts of the Ohio Dental Association. Individual dentists in the state could not have done it. Small group practices would have failed and certainly, large DSOs could not have gotten this fee increase across the finish line. Pure and simple, it was the effort of the ODA.
When I graduated from dental school in 1985, I joined the ODA because that is what you did. My father began his dental career in 1957 in the same office I practice in today and he joined the ODA that year because, that is what you did. I do not recall any sales pitch on membership benefits or discounts on dental supplies. Nor do I recall any thought about uniforms, OSHA or workers’ compensation insurance. However, I do remember being told that the ODA was the glue that held our profession together and that it was important to be part of the membership. I learned that from my mentors who were all part of organized dentistry. Little did I understand how important my membership would be to my personal life as well as the financial success of my business.
While membership and our organization has changed a lot since 1985, I will argue that organized dentistry remains the glue that holds our profession together. The 93% fee increase is one of the ODA’s greatest achievements, a gold medal, the cherry on top. A rare win-win-win for our patients, practices and the state of Ohio. Dentists can now serve this vulnerable population without fear of a significant financial loss. The more dentists that participate, the better the dental access for our communities in need and the state wins by keeping this population healthier at a lower cost.
Many years ago, the Ohio House was considering dropping adult dental Medicaid. It had never really occurred to me that the state would drop such a vital program for so many of my patients. With an all-hands-on deck response from the ODA, that disaster was luckily averted but I developed a new appreciation for the ODA, Ohio Dental Political Action Committee and the advocacy efforts. For the past 30 odd years the first check I write in the new year is the $1,000 contribution to ODPAC believing this investment in my profession would one day pay off. Jan. 1, 2024 was that day.
How was my investment returned, let me explain. I think my office is very typical of most dental practices in the rural areas around Ohio. We treat all patients in our communities to the best of our abilities regardless of insurance coverage or not. We employ five to seven people and generate around $750,000 to $1,000,000 in revenue. My office does about 30% Medicaid, so to make math simple on $1 million revenue that is $300,000. A 93% fee increase is an additional $279,000 every year without me working any harder. That leads to higher wages for my employees, new investments in my office and a better experience for patients. Additionally, if you are a dentist looking to sell their practice, what a windfall for the buyer and seller. A typical sale price is 60-80% revenue. On $1 million in revenue the sale price would be $600,000 to $800,000. In our hypothetical transaction, the new fees would allow buyer, doing no additional treatment from the year before, to purchase the practice in three to four years.
So, I encourage all my fellow dentists to invest in the ODA to keep the glue strong and stable. Give of your time and talent, or consider a platinum membership in ODPAC. Become a Medicaid provider if not currently. I promise, the investment will be one of your best.
