Age of Austerity

There is an undeniable change that has occurred in purchasing habits over the last year. Due to the PERCEPTIONS of the economy (reality rarely has any significant impact), a larger segment of the population feels insecure about large purchases and commitments. This falls into the concerns of many health care practices.

The most immediate impact of this trend will probably be felt by orthodontists and plastic surgeons. It isn't as though there is a major unemployment crisis in America. With 5.5% unemployment, things are still about 1% BETTER than during most of the Clinton administration. True, energy is much more expensive but as a percentage of gross income, it is still something that can be managed. But what has gotten into consumer's heads is the idea that MAYBE things will get worse AND SOON. Why? Because during a political election cycle like this, it makes good sense for one or both major parties to appear like they are the answer to the crisis.

So, those procedures that are perceived as needing a "commitment" are the ones that will be delayed. Obviously, oncology will continue to be a business that will remain untouched by economic shifts but dentistry and chiropractic may. "After all,: the patients says, "Can't we do without it?" The answer is YES but only for a time.

We suspect that the fundamental demand (and the desire for the benefits of treatment) will only be delayed, not denied.

The answer is to add the "moral imperative" to helping patients move forward with their treatment. "It is the right thing to do," is the message that must be repeated load and clear and often.

Is there a geographic region that is more prone to this trend? We have found the "delayed, not denied" attitude to be most common in those areas that are losing jobs (think Detroit) and losing homes (think California, Arizona, Florida, and New Mexico.) Our advise is NOT to panic! Don't slash fees. Don't blindly discount. Think about what patients are thinking and help them find the REAL reason they need this service.