May 2019 DSM Insider 32 - Page 10

MARK MURPHY, DDS, FAGD BLUE OCEAN STRATEGY AND THE DSM MARKET I n his book the Blue Ocean Strategy, Chan Kim illuminates the advantages of selling in an uncontested space. eBay did just that with the creation of online auctions. Uber recreated the Taxi Cab experience and enhanced the value proposition, so we no longer had to carry money, wait long or tip. Chick- fil-A’s secret sauce is not on their chicken, it’s in the customer service they lead the industry with. Dental Sleep Medicine is an uncontested space on steroids. With over 30 million untreated apneics in the US alone, it would take 30 years with our current capacity to treat just half those folks (assumes the additional 50% utilize PAP therapy). But I get ahead of myself. medical space! We are a very small part of the economy, health care, and dentistry. The good/bad news is, with $1 billion sales to patients, at approximately $2,000 per device, we are only providing Oral Appliance Therapy to 500,000 apneics annually. If just half of the remaining 30 million with the disease sought our care, the 5,000 or so dentists providing therapy would spend the next 30 years treating today’s patient population! And this uncontested market space is actually growing. As baby boomers age and obesity rates expand, the estimation is, we will add millions more to the unmet need. According to Frost and Sullivan as well as others, the US custom Oral Appliance Medical Device market is approximately $1 billion. Before we get too excited, the aggregate US dental market is just over $120 billion. What is the solution to the enormity of this health care crisis? Although the likely solution will have many moving parts and pieces, there are currently initiatives in place to work in the direction of a solution. The math puts OAT at just under 1% of the dental market and 0.034% of the $18 trillion-dollar The two major initiatives in place are improving Access and Efficiency. *Obesity trends in the US since 2004. Every 5 years they have had to expand the category definitions to include the increase in percent of the population that is obese by 5% in some states. Educating more providers is underway with the AADSM’s Mastery Program. The goal is to increase access to care by training Qualified and Diplomate dentists. There is no shortage of other education in DSM, from their track (adding 400-500 per year) to all-inclusive offerings like Dental Sleep Solutions, DS3 (training, software, billing and support) to University mini- residencies. Other live and even online programs abound. If all the 150,000 estimated GP Dentists in the US did just one device per week, we could treat the unmet need in two years (150,000 x 1 per week x 50 weeks = 7,500,000 devices). However, that is highly unlikely. Even doubling the number of us providing care would increase access to 1 million. A good small step, but far from enough.