Reducing Lab prices

[subrisi]

Hi all,
Our local ( Washington State) largest Dental insurance cut down the allowed amounts dentists can charge by 15%. The Dentists are not happy and try do negociate with the labs to lower the prices. I got several calls from Dentist who shop around for cheaper labs.
The dentists really pushing it and now some of the local labs offer china work. They pick up, deliver and take care of any changes that has to be made and any problems will be dealt here in town. Other labs are freaking out and reducing their prices. I just got a flyer that our lagest lab in the area cut down Emax by $35 to $169.
I don't think reducing the prices is the right way to go even when I am a rather expensive lab, because it will take me years to catch up again. So far I have not lost someone.
Did any of you guys in other states had to deal with insurance cuts and how did you deal with that? Did the market recover from that?

 

[AL1]

I live in Seattle and the way it was explained to me is if a DDS charged 1300 for a crown it would be reduced by 15% if they charged 900 it would be reduced by 15%. Not a very fair system.
I was asked by an account if I was going to reduce my fee`s, I said no.
Some dentists in the state are going to stop taking WDS patients.
I have an account who is not a preferred provider with any dental insurance company and is not affected at all, you either pay what he charges or go somewhere else.
The big labs out here Nakanyshi and Issiquah dont do very quality work anyway so if you want to settle for mediocre work be my guest.
If I lose my accounts over this, I will go be a greeter at Walmart.
My accounts havent left me yet over price.

 

[Old Navy Tech]

I'm in Seattle, and I have a client that is offered 165 for layered zirconia from some lab in Bellevue, I'm a small lab and pay 75 dollars a coping for Lava because I don't do large volumes. This all after I spend the time showing him that zr is not a bad product when processed in an un hurried non 1 bake fast heat rate process, he now wants to save a little money with a lab that has to be moving fast and furious on the zr product, not a material that should be treated like a redheaded stepchild. I was gonna suggest he send his anteriors too, see how nice they would be. I my wife is a recognized specialist at the Kois center, so we spend extra money to be a better lab. So cutting prices is not an option... becoming anterior and implant only lab is a lot more stressful with out getting a break to make an easy posterior occasionally.

 

[Mountain Goat]

Any medium sized labs interested in a possible option other than reducing your fees due to dental insurance pressures, private message me and I will fill you in on a new concept. This is something new to dental, currently in the works and we arelooking for other labs who want to participate in a cooperative effort to help US labs and get our footing back in this economy. This is not a sales pitch, I am a lab owner who is working with a group of people to come up with a plan to help our industry. We are looking for medium size labs who need a bit more volume and are priced neither high end of fee range nor pump out crap work cheap. No lab currently outsourcing to other countries for complete restorations. A digital mindset or currently a digital lab....we need technologically proficient labs. Contact me and tell me about your lab

 

[Alistar]

Hi all,
Our local ( Washington State) largest Dental insurance cut down the allowed amounts dentists can charge by 15%. The Dentists are not happy and try do negociate with the labs to lower the prices. I got several calls from Dentist who shop around for cheaper labs.
The dentists really pushing it and now some of the local labs offer china work. They pick up, deliver and take care of any changes that has to be made and any problems will be dealt here in town. Other labs are freaking out and reducing their prices. I just got a flyer that our lagest lab in the area cut down Emax by $35 to $169.
I don't think reducing the prices is the right way to go even when I am a rather expensive lab, because it will take me years to catch up again. So far I have not lost someone.
Did any of you guys in other states had to deal with insurance cuts and how did you deal with that? Did the market recover from that?

You're lucky. We had a lab here cut E.max to $130. Screwed everyone. To get back some accounts we now do e.max for $165. We do good work. We're a small lab. Around here a lot of patients have Delta Dental and they don't reimburse docs well. And on top of that, the doc's can not offer the patient the option the pay extra out of pocket to get a better restoration. Now we just partialy lost a $20,000 a month account because he's decide to send his posterior work out of state to get $100 crap crowns. This was one of the "top" sedation docs in the minneapolis area. Cash only patients. We still do his anterior work and rush cases, but it still sucks.

 

[Mountain Goat]

I am looking for labs who are doing a lot of emax and zirconia....have chatted loosely to Ivoclar about being a supplier member and I have a milling center interested in this idea too. I am trying to get good labs to join us in making our industry more stable and keep work in our country.......hope someone out there is interested in hearing more. Private mesasage me guys if you want to hear more. MG

 

[Wyolab]

Does Henry Schein or Patterson reduce their prices by 15% to compensate for this? Do these Dentists negotiate for lower leases and staff pay based on this change? Dentists need to stop being providers for those companies. Your overhead did not change, and your quality did not change. Your clients need to realize that just because you have a personal relationship with them, and you feel their frustration, you have built your business based on a certain price point so that you can pay your bills. If a Dentist is unhappy with the insurance company they should drop them. Patients can still submit their claims and pay the difference, but the insurance companies are trying to profit by squeezing the money from Dentists. If they try and profit by charging more for premiums the patients switch companies. I guess you could ask them if they are concerned about their operating budget with this cut. If they say yes then tell them lowering your prices by 15% would also put you in the same boat.

 

[amadent]

yes we are seeing way to much of this on Long Island- many doctors will think nothing of quoting prices from flyers whether they us the lower priced lab or not. or stateing the fee they get from insuance
i wont use any names but a certyian "local account" has even emailed flyerd from other labs, one lab PFM antoher lab Emax and so on-
it is something that has been going on for years and is not going to go away
that is why as much as we all love to pruduce the most esthtic work we can you must find a medium between the type of work you want to to and the fee schedule in witch you get paid for

i am in total agreement that lowering your $ is never the way to go - once you drop them, good luck ever getting them back up. with that begin said we also all must get the work in the door



i aksed a doctor , just because the patien is a insurance patient does that mean your level of care is lower< towitch he replied ofcourse not, so my reply was then you wont except any less then what i send you for fee for service patients angian he replied of course not
well he just answered his own ?- i cant and wont make less to do the same job

Greg Amendola MDT

 

[Mark Jackson]

I am trying to get good labs to join us in making our industry more stable and keep work in our country.......

Are you a member of the National Association of Dental Laboratories?

 

[Mountain Goat]

I am only a member of my state lab association. The NADL membership I will do this fall....I have a budget set up and needed to do my state membership first. I am a new lab within the last year, so I am tight with money...although I did take a hit and buy the DAMAS manual from NADL.

Are you a member of the National Association of Dental Laboratories?

 

[Mark Jackson]

I am only a member of my state lab association. The NADL membership I will do this fall....I have a budget set up and needed to do my state membership first. I am a new lab within the last year, so I am tight with money...although I did take a hit and buy the DAMAS manual from NADL.

Outstanding! Congratulations on making it through year one. Most small business fails at under a year, so you have already beaten the odds and have made it through the roughest patch of water.

Being part of your professional organization also shows a comittment to professionalism, and statistics show that businesses involved in their professional organization have a higher success rate than those who don't

Interest in, and comittment to GMP's even a step above that! Great job!