The Implications of Corporatized Healthcare

Build your relationships first….then your dentistry. ~ Bob Barkley

The Implications of Corporatized Healthcare

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You might not be thinking about J. Michael Pearson, but he is likely is thinking about your money. Mr. Pearson is the current CEO of Valeant Pharmaceuticals who recently said that his company’s responsibility is to its shareholders, while making no mention of his customers who rely on his drugs to live.

“If products are sort of mispriced and there’s an opportunity, we will act appropriately in terms of doing what I assume our shareholders would like us to do.”

J. Michael Pearson is part of the new breed of healthcare industry executives, with impressive business educations, and with no personal experience with ground-level patient care. Consequently, they look at people and patients simply as emotionally distant, compartmentalized components of their business enterprise.

Does it matter to Mr. Pearson that Betty, on a fixed income, can no longer afford her life-critical medicine because of Mr. Pearson’s business strategies? Not really, because better healthcare for people is not part of Mr. Pearson’s mission.

The profession of dentistry is in the early stages of being filled with Pearson-like characters as well, people who view dentists, patients, and dental practices as opportunities to be financially exploited. Investment firms from around the world are purchasing and consolidating practices with one purpose only – to make more money for the stockholders and shareholders.

And too often, where does this leave dental patients and dentists? Locked into a co-dependency relationship with a company which at the end of the day, does not have their interests primarily in mind.

Do the right thing? Not so likely.

Hold out for what is in the patient’s long-term best interest? – That interferes too much with the corporate need to hit production goals and therefore make bonus requirements.

It’s an insidiously depersonalizing and de-professionalizing trend. And the truly relationship-based, health-centered practice is the only market alternative. As the contrast grows between these two business philosophies, so too will the opportunities for dentists who have taken the time and made the effort to truly listen and truly help patients on a level much deeper than just another financial transaction.

Paul A Henny, DDS

Thought Experiments LLC, ©2017

On Dentistry’s Future

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Imagine a corporate dental practice model with a size and a business model which is unique – and unstoppable.

A vertically integrated model which will likely own thousands of dental practices and manage tens of thousands of patient calls a day through a call center. Additionally, imagine them building mega-multi specialty state-of-the-art clinics around the country which they will then fill with both dentists and patients.

Imagine them designing their own proprietary software to coordinate all activity, and them importing and making their own supplies and equipment in China and elsewhere. Imagine a clinic in Dubai and elsewhere, and imagine all of it being done debt-free with investment dollars flowing from overseas.

A complete fantasy and not in my lifetime you say? The picture here is that of an existing Ortho department in one of these mega clinics about ready to open right here in the U.S..

The floor? Custom marble imported from their own company in China. The light fixtures? Patented and made by their own company. The dental equipment? Ditto.

This is no fantasy. This is the future of dentistry. And everyone practicing today needs to be looking over the hill and strategically planning for how they will fit into it, or planning how they will be leaving it, because there is no one who will be able to compete AGAINST what I have just described.

In the 1980’s Avrom King told us that the market would differentiate into three tiers, and that only the top tier -Tier III would remain as a viable independent business model. It represents relationship-based / health-centered care, and it can’t be imported from China.

So, it turns out that Avrom was spot-on in his projections.

What do you plan to do about it?

Paul A Henny, DDS

Thought Experiments LLC, ©2016

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