The American Dental Association spends millions on lobbying in Congress each year and has a surprisingly significant pull on our legislative system.
In 2010 (a Congressional election year) the ADA spent $13 million on funding state and local politicians to get favorable votes. As an example of their pull, they successfully lobbied in 1965 to keep dentists out of Medicare. Now, in the midst of the 2012 election, it looks like they’re going to open their checkbooks even wider.
A recent ADA newsletter claimed that the political backing and lobbying is to “keep well-intentioned fools from doing stupid things”, while referring to dentistry as a whole.
Dentistry Under ObamaCare
Part of the recently passed healthcare bill, coined Obamacare, has a clause meant to spread dental care to low-income families and individuals. The provision would allow some non-dentists to perform lower level procedures currently done only by fully certified Dentists.
More specifically, Dental hygienists and therapists would be allowed to do routine cleanings and in some cases even drill for cavities. As of this moment, only Alaska and Minnesota allow mid-level dental care professionals to practice.
The ADA naturally feels hesitant. This threatens the demand for their higher-level services and could result in salary adjustments. Those who disagree with the ADA stand firm that allowing lower level tasks to be provided by hygienists and therapists is the most effective way to get oral care to the poor.
Another Threat- Keep 32
Keep 32, developed by Jose Cordoba of Yale University and Erich Astudillo of Universidad de Santiago in Chile, is a miraculous new oral cleansing tool that kills all bacteria in the mouth within 60 seconds. The chemical has been in development since 2005 and is now ready for human testing. It may find its way to the public within the next 12-18 months. The patented product can be used in gum, toothpaste, mouthwash, floss, candies, and dental gels. As long as it remains in your mouth for 60 seconds, it will eliminate all bacteria present.
UCLA has also developed a “Smart Bomb” mouthwash that kills “S. mutans”, the main cause of tooth decay. The wash was tested on 12 patients and successfully killed the bacteria after one rinse and kept the same bacteria away for four days. What differentiates this wash from others is that it only targets the harmful bacteria inside the mouth, leaving the good bacteria that protect teeth unscathed. The developers of this breakthrough are confident that the product symbolizes the end of tooth decay and in many cases, cavities. The developers received substantial backing from Colgate-Palmolive (CL).
Dentists’ Reaction
So how can the ADA protect itself against the threats to their business? Well, they’re going to start by throwing money at Republican candidates this election. President William Calnon says they will do this because “there are more of them in Congress” and because they “have a good track record embracing ideas we support.” Translation: Republicans are going to go after Obamacare so we’re going to give them money.
If the dentists help the Republicans into office, we can assume there will be a long struggle to prevent Keep 32 and the Smart Bomb mouthwash from getting any FDA approval, even if it does prevent cavities (more than 50% of kids get them and 92% of adults will get at least one cavity at some point).
Business Section: Investing Ideas
If the ADA has their way and helps Republicans into office this November, do you think the part of Obamacare that includes dental hygienists and therapists will be upheld? And what about these breakthroughs in the oral health field? Are their positive affects enough to persuade Congress, or will this special interest group have its way?
The oral health industry reaches many people in not only the United States, but the world. From providing simple products like toothpaste and brushes to the more technical devices used by dentists and oral surgens, the industry is quite large. Below is a list of companies involved in dentistry who have considerable interest in the outcome of the events mentioned above.
Interactive Chart: Use the Compar-O-Matic to compare market caps for the stocks mentioned below:
1. Procter & Gamble Co. (PG, Earnings, Analysts, Financials): Provides consumer packaged goods in the United States and internationally. Market cap at $177.59B, most recent closing price at $64.81.
2. Colgate-Palmolive Co. (CL, Earnings, Analysts, Financials): Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. Market cap at $49.81B, most recent closing price at $104.37.
3. Align Technology Inc. (ALGN, Earnings, Analysts, Financials): Designs, manufactures, and markets the invisalign system for treating malocclusion or the misalignment of teeth. Market cap at $2.49B, most recent closing price at $30.98.
4. Biolase Technology Inc. (BLTI, Earnings, Analysts, Financials): Develops, manufactures, and markets lasers and related products focused on technologies for improved applications and procedures in dentistry and medicine. Market cap at 55.9M, most recent closing price at $1.75.
5. Danaher Corp. (DHR, Earnings, Analysts, Financials): Designs, manufactures, and markets professional, medical, industrial, and commercial products and services primarily in North America, Europe, and Asia/Australia. Market cap at $34.84B, most recent closing price at $50.29.
6. Henry Schein, Inc. (HSIC, Earnings, Analysts, Financials): Distributes healthcare products and services primarily to office-based healthcare practitioners. Market cap at $6.96B, most recent closing price at $77.45.
7. 3m Co. (MMM, Earnings, Analysts, Financials): Operates as a diversified technology company worldwide. Market cap at $61.13B, most recent closing price at $88.10.
8. Patterson Companies Inc. (PDCO, Earnings, Analysts, Financials): Operates as a distributor serving the dental, companion-pet veterinarian, and rehabilitation supply markets in North America. Market cap at $3.79B, most recent closing price at $34.37.
9. Sirona Dental Systems Inc. (SIRO, Earnings, Analysts, Financials): Develops, manufactures, and markets dental equipment for dentists worldwide. Market cap at $2.48B, most recent closing price at $44.66.
10. DENTSPLY International Inc. (XRAY, Earnings, Analysts, Financials): Designs, develops, manufactures, and markets dental consumable products, dental laboratory products, and dental specialty products worldwide. Market cap at $5.09B, most recent closing price at $35.92.
11. Young Innovations Inc. (YDNT, Earnings, Analysts, Financials): Engages in the development, manufacture, and marketing of supplies and equipment used by dentists, dental hygienists, dental assistants, and consumers primarily in the United States, as well as in Canada, Europe, South America, Central America, and the Pacific Rim. Market cap at $281.39M, most recent closing price at $35.80.
(Written by Ryan Horch)
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What an idiotic assertion this author makes about dentists and their motives! Collectively, we as dentists would readily embrace such breakthroughs to fight and perhaps prevent dental caries. But don't think this would be the end of dentistry or the need for dental care. Fractured teeth, periodontal disease, and a long track record of patient non-compliance will keep us busy trying to make the oral world a better place. As for hygienists or mid-level providers placing fillings, etc, you are asking for trouble. Perhaps the government should open up more dental schools and graduate more dentists at a significantly reduced cost to the graduating dentist.
We we next hear about orthopedic surgeons being supplanted by nurses to perform knee replacements? Not a smart idea.
I couldn't agree more!
Comparing a surgical nurse to a dental hygienists is indicative of voluntary blindness on your behalf. You know better but choose to make misleading comparisons to sell inaccurate ideas to the unsuspecting public (sounds familiar to dental clinic patients?).
–You know that dental hygienists do all of the preventative work for you already,
–you know that you bill a lot more than you pay a hygienist,
–you know that dental hygienists operate independently of dentists in many states, provinces and countries and that the standard of care and success of treatment is equal to that of dentists when it comes to prevention,
–you know that a dentist has about 250 hours of training in dental hygiene, a dental hygienists has 2500-3000 hours and is able to diagnose soft tissue health condition without a dentist,
–you know that your 25 minutes dental hygiene appointments consist of 25 and not more in order to maximize profit rather than preventative effort.
–You know that after 10 years of practising dental hygiene, a dental hygienists has mastered prevention through countless hours of clinical practice, continuing education and mandatory skill re-evaluation every 5 years (currently in effect in British Columbia) while most dentists know care and do little about prevention. Most simply use hygienists for scraping teeth. Separate hygienists from dentists and watch innovation and competition in action. When job number one is to prevent, when revenue source number one in prevention, the service provided is 100 (approximation) times superior to what a typical dental clinic offers.
–you know better and so do governments and so does the public these days.
–If you want to find a good dentist, a dentist who cares about prevention, find a dentists who supports independent dental hygiene—they are few and far between but they do exist.
—There will always be a need for dentists but there is no need for dentist monopoly over preventative oral health care.
Autonomous dental hygiene clinics is a concept that has been hypothesised, tried, scientifically tested, already functional in many places and offering people a choice they never had before… A highly trained professional, often with advanced educational/clinical requirements such as bachelors, masters degrees who are not busy selling dentistry, nor cosmetics but only focusing on prevention options.
I am deeply insulted by this article. I am a practicing peabody dentists and I acknowledge that the dental world is losing a war against apathy for oral health. Why will I oppose such breakthroughs?
First of all generalizing is always not good. Every association has their own motives. Some opinions could be right and some could be not. I am working for a dental recruitment agency and I’ve seen a lot of difference from dentist from different regions.
I'm kind of divided regarding this issue. I'm not sure if opposing the oral care breakthrough will be the right thing to do since a lot of people are in needed of their dental services. I go to a Family and Cosmetic Dentistry, and without my health card, there's no way I could afford their services.
I just want to clear this one out. First of all, I'm a bartlett dentist and I will say that your assumption is not true. We are doctors in our own right and we embrace innovation! We research not only for the sake of ourselves but for everyone else so what's the logic of shutting down the breakthroughs? Its not all about the money.
A lot of dentist rockford il has been aware of this Obamacare project. they've been explaining this to their patients and make told them that equal treatment is given for sure to discounted and paying patients.
To be honest, I don't see the purpose of this and how it'll benefit most of them. As far as I know though, the dentist in greenville sc isn't in favor of this. I believe that shutting down the oral care breakthrough might even decrease the amount of patients that they'll be receiving.
My concern now is that if this will benefit our dental health and dental insurance then I say yes to this. My dentist houston offered me a dental plan and I find it very helpful.
Now I understand why there is an increase in dental temp agency. This is getting dentists out of their jobs!
Most dentists are great, but let's face it. Prevention is not profitable.Restorative and cosmetic work is very profitable. Which would most humans go for, profitable or not profitable?
Preventing dental hygienists and dental therapists from operating independently maintains the profit margin of dental clinics. Again, which would most people go for, more profit or less profit?
Here is an investigative report on dentistry in Canada. http://www.cbc.ca/marketplace/episodes/2012/10/mo…
So expect most votes by dental associations and most of lobby money to oppose breaking the monopoly that dentists have over preventative oral health care in any way they can.
There is lots of work for dentists. Expect no big changes despite breakthroughs but the fear of losing control over such a profitable self-regulated niche is unrealistic. I bet that more than 75% dentists will oppose increased competition purely from a self-profit-preservation point of view.
Just like the application of sealants and the use of Xylitol, both of which effectively prevent cavities, little is done by dentists to promote their use. It doe not pay.
Sorry about the negative view of the industry but I have worked in it for 20 years, I am related to a dentists and know the dental community on a first name basis. There are maybe 1 out of 7 dentists out there that truly focus on prevention. 100% of Independently operating dental hygienists are focused on prevention and are therefore having a very, very difficult time fighting the overwhelmingly better funded dentist lobby that is doing all they can to maintain their monopoly.
Simple economics at play. There is no need for complicated rhetoric.
Opportunity plus incentive = behaviour.
Opportunity – dentistry is self-regulated and regulates prevention professionals as well.
Incentive – Low competition maintains high profit margins.
Behaviour – competition/prevention are opposed (again on average-not by all dentists)
I work/research/document the dental industry but am not a dentist nor a hygienist.
Great article.
Thanks
If this new policy is implemented, then I'm sure any dental clinic, such as dental implants in scottsdale az, will loose patients. The way I see it, oral care is actually a benefit to them.
A considerable measure of dentist in florence sc has been mindful of this Obamacare activity. they've been demonstrating this to their patients and make told them that square with medicine is given beyond any doubt to reduced and paying patients.
I'm not quite sure if this is quite a good idea. As far as I know, not all dental clinics, such as the dentist north hollywood ca , are in favor of this decision. Hopefully, they would think this over and know what's best for the dentists and the patients.
I have a feeling that several adjustments would have to take place before this new policy is implemented. I'm not in favor of this though, because I believe everyone deserves to have an oral care. Personally, I wouldn't be able to see my dentist revere ma that much for consultations and treatments if I didn't have a good oral care.
There has been a lot of debate and argument because of this topic. Even the sydney dentists are commenting about it. It makes me glad to see that some dentists are also thinking about their patients when it comes to this.
The oral care products I'm only using are the ones prescribed by my dentist in Newtown Square PA.
My only concern here is that if dentist in jackson tn will be pulling out some of their dental plans, if that is so, they should be informing their patients ahead of time.
Because the industry could be doing a lot more than it is to prevent human suffering, medical problems and disease. Profitability and self-preservation of a professional monopoly is getting in the way.