Dentist Financing: Get a Professional Credit | Financing of the liberal and medical professions.
The dental sector has been evolving favorably over the past few years.
The causes are structural. First of all, the aging of the population alone strongly stimulates the need for care. Seniors represent more than a third of the population. Added to this is the impact of changes in eating habits, particularly with high consumption of sweet foods.
The 36,102 French dentists charged 8.525 billion USD in fees in 2010.
On the other hand, dentists have greatly diversified and practice more and more interventions that are not supported by the Health Insurance. This concerns in particular all the aesthetic benefits or the installation of certain implants. In this segment the tariffs are free, and thus more remunerative.
In addition, professionals in the contracted sector also practice the overruns. This limits the impact of the policy pursued by the public authorities to reduce health insurance expenses.
The market is therefore buoyant despite a slowdown in growth. Dentists are suffering from the tense economic situation, which is causing some patients to postpone or forego the most expensive care. The coverage rates of the Health Insurance are indeed particularly low.
Finally, medical tourism leads more and more people to seek treatment abroad. The Eastern countries are therefore a destination of the most popular. Admittedly, for the moment the impact of this phenomenon is marginal.
As for the workforce, the profession is affected by the arrival of retirements associated with the numerus clausus. For example, whole regions, especially rural areas, are experiencing a shortage of dentists. The authorities are trying to encourage them to spread more evenly over the territory.
How is the dentists market organized in France?
The aging of the population will remain the main cause of the progress of the interventions. This will ensure a better return on benefits. In general, older patients have more complex issues. On the other hand, dentists will increasingly depend on reimbursements of complementary health and mutuals. The sector is organized around 2 poles:
- Dentists perform all dental surgery procedures. Some perform the dentures themselves in their laboratory.
- Orthodontists are responsible for all dento-facial orthopedic procedures.
To settle as a dentist: the constraints
The professional holds the diploma of dentist who sanctions 6 years of studies. Candidates wishing to specialize complete two additional years of study. In first year, the training is the same as that of doctors. The numerus clausus is very severe. In 2010, only 1,157 candidates were selected. This severity leads to marked aging of practicing practitioners. The average age is 47 years old.
The professional can remain independent or associate. The law provides for four types of associations:
- professional civil societies,
- liberal exercise societies,
- civil society means,
- joint ventures.
The professional is registered on the board of the Order of the department where he settles. His installation is free, however he must obtain the authorization of the City Council to practice at his home. In Paris, this authorization is obtained at the prefecture.
The rates of the acts are governed by the national convention of the dentists, as well as by the various dental conventions. The last in force is that of the year 2006.
In the case of excess fees, they are authorized and governed by an order dated March 31, 1997. These overruns are very frequent in the context of certain procedures, such as dental prostheses. The profession has signed an agreement with the Health Insurance which sets ceilings to be respected for these overruns.
The management of a dentist’s office
The dentist must follow his annual results, which he decomposes between the number of acts and the coefficients relating thereto. Revenues are represented by the fees of the contracted acts and the overruns. The prostheses offer excellent profitability, because the prices are free but the health insurance covers very slightly this type of expenditure.
The main expenses consist of purchases and supplies. On average, they reach 55% of the gross result.
Salary costs are also significant, as most dentists employ staff both as assistants and to perform secretarial duties.
Finally, it is important to note the importance of the investments needed to renew the equipment. This renewal also entails charges for its financing.
To succeed, the professional must ensure that he maintains and develops his clientele. The profitability of the acts must also be ensured. The ratio of the average price per act is a useful indicator. The prosthesis activity is profitable, but requires significant capital at startup.
Most expenses are covered by health insurance and complementary health or mutual insurance organizations which guarantees payments. However, a waiting period is necessary which can lead to cash flow requirements.
Buyback of patient from a dentist
As part of a recovery, the patient of a dental surgeon can be estimated between 50 and 100% of the average revenue of the last 2 years.
Get a professional loan to finance a dental office
The dental sector is not very risky. As a result, only keen competition can limit prospects. It is wise for the professionals of the saturated zones to associate, to share the means and the loads, and to attract more customers with a modern and frequently renewed material. In less-covered areas, particularly rural areas, creations are good operations.
Customer recovery is more about urban areas. They allow to have a clientele from the start. The buyer benefits from a non-compete commitment from his transferor.
Finally, many professionals associate themselves for example in the framework of professional civil societies, or civil societies of means.
The heaviest investments concern the equipment. Moreover, it must be renewed frequently because of technological progress. In the city, the quality of the equipment is decisive for attracting customers.
This equipment can be financed by bank loan or by leasing. Banks are rather conducive to studying funding from health professionals.