Dental Care in the Express Lane. July 27, 2010
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1 Dental Care in the Express Lane July 27, 2010 Scott & Company, Inc. 2010
2 Overview CHCF commissioned Scott & Company, Inc to conduct a feasibility study Oral healthcare: critical unmet need of the safety net population Concept of a Retail Dental Clinic model based on retail healthclinics The concept Business Model Consumer Response Retailer Interest Regulatory constraints Report and Model Download Scott & Company, Inc
3 Traditionally retail clinics are inside a store, operated by a provider Inside a retail store Offer routine medical care on an ongoing basis Staffed with NPs who can write prescriptions Clinic Scott & Company, Inc
4 The Retail Dental Clinic Concept Bend the healthcare cost curve : location, provider, technology Retail dental clinic is similar to retail healthcare clinics: Limited scope Lower cost structure: allied Providers, small space inside store Competitive, transparent prices, convenient access, quality care Scope of services offered at a retail dental clinic determined by: Practitioner scope of practice, Appropriate dental care needs and Consumer demand and logistical or business constraints. Offer essential diagnostic and preventive care Refer patients to dentists; complement a dental home Scott & Company, Inc
5 The Retail Dental Clinic Consumer Reaction Consumer survey indicated a clinic could serve as a complement to their dental homes. 44% of consumers indicated a likelihood of using such a clinic Latino response even higher at 63% Respondents keen to connect with a dental home 87% agreed I like that the results of the exam and x-rays can be sent to my dentist if I choose this option; 84% agreed I like option to send a copy of my visit record is important 83% option to get a referral to a dentist I can afford is important to me. Retail dental clinic consumer may be: Likely to be a lower income/publicly-insured (Medicaid), or uninsured individual Paying cash, Younger, use the dentist less frequently Scott & Company, Inc
6 The Retail Dental Clinic Business Model The retail dental clinic business model is challenging Costs approximately $220,000 to build out a clinic space (plumbing, dental chairs, digital x-ray, (EDR) software and other equipment. Fixed operating costs (labor, rent) are ~ $195,000 / year Variable operating costs of ~ $48,000 / year Majority of these costs (75%) are for dental hygienists to staffthe clinic Staff costs will differ depending on the level of qualification of the provider; Some clinics may have advanced dental hygienists and Others dental hygienists; Augment practitioners with dental assistants. Scott & Company, Inc
7 Retailer Response is Mixed Retailers will need to endorse this concept Retail space offers low cost rent and lower marketing costs as clinics can leverage the exiting customers in the store Without these lower costs and the customer base, the business model doesn t appear viable. It s unclear if the value proposition to the retailer is compelling Retailer gets the lease revenue for the clinic space yet Limited opportunities for sales of additional products Consumer survey indicated that respondents liked the in-store location 78% of consumers likely to use the clinic I like that this clinic is in my local store 70% of consumers most preferred a mass merchandise location, 41% a drug store Scott & Company, Inc
8 Regulatory Issues State Decisions Several policy changes may be necessary to enable this model Licensing of dental hygienists and their scope of practice Facility licensing Dental hygienists scope of practice varies by state and by qualification; most states don t allow the hygienist to diagnose and without a diagnosis they cannot treat patients In other states, RDHs have a broader scope of practice that includes diagnosis and treatments of basic conditions Practitioner (rather than the facility) is licensed; most statesallow ownership excluding states such as California Reimbursement from public programs is also a key issue; clinics would need to have providers approved as Medicaid providers Scott & Company, Inc
9 Report and Model for Download at CHCF.org Scott & Company, Inc
10 Report and Model for Download Scott & Company, Inc
11 Contact Details Mary Kate Scott Scott & Company, Inc Scott & Company, Inc
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