Using Competitive Information to
Optimize Dental Network AccessAaron Groffman
President, The Ignition Group
www.netminder.com
Discussion Topics
Dental networks will continue to be important
All dental networks are not the same
Using CI to optimize your dental network
Discussion Topics
Dental networks will continue to be important
All dental networks are not the same
Using CI to optimize your dental network
Dental networks save money
Procedure
Average
Charge
Average
Discounted
Fee
Discount
Percent
Exam $39 $26 33%
Cleaning $72 $54 25%
Filling $129 $87 33%
Crown $859 $682 21%
Source: Ruark Dental PPO Network Study, 2008 Edition
Dental networks save money
Average
Network
Discount
Network
Utilization
Effective
Discount
31.9% + 37.6% = 13.2%
Source: Ruark Dental PPO Network Study, 2008 Edition
It’s good to be a dentist
But not quite as good as it used to be
But not quite as good as it used to be
Financial Forecast Center, LLC July 2010. http://www.forecasts.org/
Unemployment Forecast
Discussion Topics
Dental networks will continue to be important
All dental networks are not the same
Using CI to optimize your dental network
A word about measuring networks
Unique providers
Unique locations
Access points (providers at locations)
Practicing
Non-practicing
A word about measuring networks
A word about measuring networks
5 unique providers
A word about measuring networks
5 unique providers
4 unique locations
A word about measuring networks
5 unique providers
4 unique locations
9 access points
(providers at
locations)
A word about measuring networks
Practicing Location
Practicing Location
Non-Practicing Location
Practicing Location
Dental PPO networks continue to grow
0
20,000
40,000
60,000
80,000
100,000
120,000
Ave
rage
Nat
ion
al N
etw
ork
1.50
1.55
1.60
1.65
1.70
1.75
1.80
1.85
1.90
Ave
rage
Lis
ted
Lo
cati
on
s P
er
De
nti
st
Provider Locations 66,976 68,668 79,501 88,145 106,473
Unique Dentists 41,310 42,372 46,932 49,542 57,562
Locations Per Dentist 1.62 1.62 1.69 1.78 1.85
Jul-05 Jul-06 Jul-07 Sep-08 Sep-09
Source: NetMinder Sep09
+20.8%
+16.2%
Average National PPO Network
Contracted Providers
49,542
Contracted Providers
57,562
Available Providers
115,482
Available Providers
112,176
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Sep-08 Sep-09
Pro
vid
ers
Market penetration is growing but still low
Source: NetMinder Sep09
30.0%penetration
33.9%penetration
Average National PPO Network
Dentists are participating with more networks
Source: NetMinder Sep09
Network Participation
7.07.4
7.8
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
Sep08 Mar09 Sep09
Ave
rage
Ne
two
rks
Pe
r P
rovi
de
r
Though many still participate with just a few
42% of providers
participate with <=3
networks
Network Participation
1 network, 23.2%
2 networks, 11.6%
3 networks, 7.2%
4 networks, 5.0%
5+ networks, 53.0%
Network Participation
Source: NetMinder Sep09
Overlap varies by counting method
Network A:107.8K Provider Locations
59.7K Providers
Network B:104.4K Provider Locations
52.1K Providers
68% Overlap
(Providers)
Source: NetMinder Sep09
Overlap varies by counting method
Network A:107.8K Provider Locations
59.7K Providers
Network B:104.4K Provider Locations
52.1K Providers
52% Overlap
(Provider Locations)
Source: NetMinder Sep09
Overlap varies by state
80%
23%
74% 74%
64%
56%
49%
30%
72%67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
AL AR AZ CA CO CT DC DE FL GA
State
Ove
rlap
- P
rovi
de
rs
Source: NetMinder Sep09
Overlap: Network A vs. B by State
5.7
3.2
1.8
1.0
3.4
1.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Non Practicing Practicing
Location Type
Loca
tio
ns
Pe
r P
rovi
de
rNon-practicing locations skew the numbers
KS, KY, MO, VA
CA, GA, MN, TX
Average
Source: NetMinder Sep09
The right ones need to be added to impact
costs
13.5%
8.6%
0.8%
-3.6%-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Access Points Unique Dentists In-network utilization
(passive)
Effective discount
(passive)
Per
cen
t gr
ow
th 2
008
v 20
07
Source: Ruark Dental PPO Network Study, 2008
Edition
2008 Growth Rates
Discussion Topics
Dental networks will continue to be important
All dental networks are not the same
Using CI to optimize your dental network
Optimization Strategies
How many
X providers in Y miles access
Providers per capita
Penetration of available universe
Which ones
Already have
“NOT IN” locations for “IN” providers
“NOT IN” providers at “IN” locations
Others have
Practicing locations
Multiple networks, but not too many
Which providers to recruit
Summary
Dental networks will continue to be important
All dental networks are not the same
Effective use of CI can help you optimize your dental
network
What the future holds