We all have begun to notice that every day prices are on the rise, and not just a little… In fact, it was reported that in 2021 the Consumer Price Index rose about 7% according to the Labor Department Bureau of Statistics. That is the highest pace since 1982. Staff members are feeling the pinch in their financial lives.
In order to attract new staff members, dentists have begun to raise their starting salaries, and your staff members are hearing about this from their friends. It is important that you raise your staff salaries as soon as possible for 2022, not just 1 or 2%, but closer to 6 or 7%. You want to do this now, before your loyal staff members begin to look at the help wanted websites on the internet. You want to show them how much you care about them.
You also need to look after the profitability in your dental business, so it is also necessary to raise your fees substantially. If a large portion of your patients are enrolled in dental insurance plans that you participate with, raising your fees will not affect your collections enough to make up for the raise in your payroll. This is a very good time to contract with a company that specializes in the negotiation of fees paid by insurance plans. Even a small raise in the fees allowed by insurance companies will affect your bottom line.
Take action now! Don’t just pretend that this is not happening. It is! Now smile!