Becker's Dental + DSO Review

7 BECKER'S DENTAL + DSO REVIEW // VOL. 2022 NO. 1 DENTAL PROFESSIONALS Rising dental costs build case for 'buy-now-pay- later' companies By Gabrielle Masson T he pandemic is driving investor interest in health- care, with some lenders anticipating rising out- of-pocket dental care costs will create a lucrative financing market, The Wall Street Journal reported Nov. 6. In 2020, 17.5 percent of Americans reported skipping dental care within the previous 12 months because of the cost, according to the American Dental Associa- tion's Health Policy Institute. Additionally, 7.9 percent of respondents skipped medical care because of cost, followed by 6.3 percent for prescriptions and 5.2 per- cent for mental healthcare. In general, dental insurance covers far less than tradi- tional medical insurance, with many plans only paying $1,000 or $2,000 of dental work per year, according to the Journal. "Dental insurance is not true insurance in the sense that it protects you from catastrophic costs," said Mar- ko Vujicic, PhD, chief economist of the ADA's Health Policy Institute. "It's more of a prepaid benefit." Some organizations are tapping into the market by letting people pay for specific items in installment loans, often approving borrowers who may not qualify for credit cards. Buy-now-pay-later lender Sunbit said its den- tal-finance offering added this year is its fast- est-growing segment. Patients often first hear about the financing options at the dentist's office and apply on the spot. People are less likely to default on healthcare purchas- es compared to travel or consumer goods, partially because they tend to have established relationships with dentists and physicians, said Brian Shniderman, CEO of buy-now-pay-later lender Opy USA. Citizens Financial Group partnered with PrimaHealth Credit in July to offer buy-now-pay-later financing for dental work. Consumer lender Synchrony offers CareCredit, a credit card for healthcare and pet expenses, at nearly 116,000 dental offices. Some dentists prefer patients using CareCredit instead of a monthly payment plan set up directly with the office. Then, if a patient doesn't complete payment, Synchrony is on the hook, though Synchrony said nearly 80 percent of customers pay off balances in full before its interest-free period ends. n States ranked by most active dentists per 100,000 population By Ariana Portalatin M assachusetts has the highest number of active den- tists per 100,000 population among the U.S. states, according to data from the National Center for Bio- technology Information. The data table includes the number of active dentists in the U.S. from 2001, 2007, 2015, 2018 and 2019. The data was compiled using information from the American Dental Associ- ation's Health Policy Institute. Washington, D.C., was also included on the data table with 104 dentists per 100,000 population in 2019. States ranked by most active dentists per 100,000 popula- tion as of 2019: Massachusetts: 83.38 Alaska: 80.51 New Jersey: 79.47 Hawaii: 78.33 California: 77.88 New York: 75.32 Connecticut: 72.64 Maryland: 70.56 Washington: 70.41 Colorado: 68.77 Illinois: 67.58 Oregon: 67.22 Nebraska: 64.31 New Hampshire: 63.47 Virginia: 63.19 Utah: 60.95 Montana: 60.26 Vermont: 59.94 Pennsylvania: 59.44 Michigan: 58.91 Minnesota: 58.78 Wisconsin: 58.07 Kentucky: 57.03 Nevada: 55.26 Arizona and Wyoming: 55.12 North Dakota: 55.11 Maine: 54.83 Idaho: 54.22 Iowa: 54.01 Rhode Island and Texas: 53.81 Ohio: 53.20 North Carolina: 52.55 Florida: 51.88 New Mexico: 51.51 South Dakota: 50.75 Kansas: 50.66 Missouri: 50.53 Oklahoma: 49.56 Louisiana: 48.72 Indiana: 47.95 West Virginia: 47.88 Tennessee: 47.43 South Carolina: 47.16 Georgia: 46.83 Delaware: 43.95 Mississippi: 42.91 Arkansas: 41.82 Alabama: 40.97 n

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