Darren Kaberna
Prosper in the face of any challenge by getting focused on what you want in life and business!
How will the new law “Taxable Medical Devices” impact my dental office?
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How will the new law “Taxable Medical Devices” impact my dental office?
The law is written such that this 2.3% tax is an excise tax that manufacturers and importers will pay on everything that is listed as a medical device with the FDA. This is an outcome of the Health Care and Educational Reconciliation Act of 2010.
What does this mean for your dental office? Many things that you purchase from your suppliers will go up in price by 2.3%. Now lets not kill the suppliers, they didn’t impose this law, and in fact I am certain they aren’t enjoying it anymore than you are. If you want to fully understand the law and can’t sleep at night, here is a link to it for your enjoyment. Awesome Law
Here is where this law is going to be a problem. If your practice is full of many PPO patients, you are going to find it challenging to recover this extra expense. That being said, not impossible to pull off though either. If on the other hand, your practice is a non-PPO or cash practice, I suspect most will simply pass this cost along to their patients.
Here is the sad thing about this for many doctors. Many have been pinched in the past few years and have taken pay cuts already. The thought of a fee increase is scary to many that they might lose patients. The number of doctors I know that have been either flat in production or down $100K is pretty overwhelming.
Now here is the good news, there are many doctors doing extremely well. The last statistic I saw from the ADA stated that 14% of doctors had their biggest year. What I find interesting is how the human mind works. Many would look at that statistic and only see doom and gloom. Others would say, if 14% can grow, why can’t I?! That is the question you need to ask yourself. Scarcity thinking won’t do you any good. Prosperity thinking, on the other hand, could change your life. Now, no one said it was easy to stare into the face of adversity and conquer it, but the most successful people throughout history did just that. What do they know that most don’t? Let’s ponder that thought a bit.
The most successful people in history see problems as opportunities rather than traps. Too many simply see traps and get down and then their performance becomes even worse. This vicious cycle traps that vast majority of people in this world. To climb out of this predicament, sit down and get clear about what is important to you. Understand and write out what you want to become. Then review it daily so you can get very emotionally connected to that goal or outcome. Now write out just a few things that, if done consistently, will get you there. If you do this, I can promise you one thing, your life will change. I watched a friend go from broke and homeless to building a $20M business in just 60 months.
How does this relate to an increase in cost to run your dental office in a poor economy? Simple, if you improve how you and your team deliver value to your patients, guess what will happen - growth!! If you are a PPO practice feeling trapped, get creative, improve your case presentation skills and start attracting patients that aren’t PPO patients. What is holding you back from changing your practice to a fee for service practice so you aren’t trapped?
What is holding you back from increasing your production and being happy about the financial performance of your practice? What is holding you back from being as profitable as you'd like?
Want to learn how to increase your production and your profitability?
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