Discrepancy in the dental marketplace demands explanation DrBicuspid article number 1: “ADA: Dentists earnings not recovering from recession.” By Donna Domino, Features Editor, DrBicuspid. drbicuspid/index.aspx?sec=nws&sub=rad&pag=dis&ItemID=316974 “December 16, 2014 -- - Dentists earnings are not rebounding despite several years of economic recovery, according to new ADA research. Recent years have seen a stagnation of dental spending, an increased number of dentists and, as a result, stagnant dentist earnings, the study found.” (See study: “Dentist Earnings Not Recovering with Economic Growth.” Authors: Bradley Munson, B.A.; Marko Vujicic, Ph.D.). ada.org/~/media/ADA/Science%20and%20Research/HPI/Files/HPIBrief_1214_1.ashx Domino adds, “The report used 2013 data from the ADAs annual survey of 4,000 to 17,000 dentists in private practice, which includes 92.2% of active dentists in the U.S. The surveys response rate was 18.4%. Net income was defined as income remaining after practice expenses and business taxes and included salary, commission, bonus and/or dividends, and payments to retirement plans.” DrBicuspid article number 2: “Stock guru Cramer: Dental stocks are hot now.” By DrBicuspid Staff.” “December 23, 2014 -- Dental stocks are the hottest performing group in the market at the moment, according to CNBC ‘Mad Money’ host Jim Cramer.” drbicuspid/index.aspx?sec=sup&sub=bai&pag=dis&ItemID=317023 Anonymous DrBicuspid author: “As long as the U.S. economy is doing well, dental stocks will do the same, according to a CNBC story. Cramer specifically highlighted Henry Schein, Patterson Dental, and Sirona Dental Systems in the story.” She adds: “According to Cramer, with an economy recovering from the Great Recession, consumers have more money to spend on dental procedures. Dental care is a $116 billion market that is growing 3% annually, the story noted.” Obvious question: If individual dentists are earning less than before the recession, as revealed by the ADA survey, who is purchasing the increased amount of dental equipment and supplies, as revealed by Jim Cramer? Here are three possible explanations which are not mutually exclusive: 1 - Large, managed care and Medicaid clinics run by national corporations - which pay dentists, dental therapists and hygienists very little for fast, tedious work in sensitive mouths - are expanding rapidly and sending unprecedented amounts of money to Henry Schein, Patterson Dental and Sirona Dental Systems for supplies and equipment. Think “fast haircuts.” 2 - Cramer is inviting hapless investors for a ride on a bubble whose collapse is imminent. Think “close haircuts.” 3 - Henry Schein, Patterson Dental and Sirona Dental Systems are DrBicuspid clients who quietly funded the anonymous press release to increase their companies’ stock value and C-suite compensation packages. “Toupees” Unlike Donna Domino’s article based on peer-reviewed research, nobody at DrBicuspid is willing to take personal responsibility for the investment recommendation based on CNBC’s “Mad Money.” Note that the ONLY purpose for anonymity is unaccountability… It is because of comments like this that I was banned from DrBicuspid years ago. In my opinion, American consumers deserve transparency from secretive dentalcare publications. Don’t you agree? If so, please share this spamphlet. If we don’t speak up, nobody will. D. Kellus Pruitt DDS CC: DrBicuspid
Posted on: Wed, 24 Dec 2014 18:27:20 +0000
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