North Texas Dentistry Volume 8 Issue 5 2018 ISSUE 5 DE | Page 22

practice transitions
Preserving Dentistry’s Advantage
by Lynne S. Gerlach, DDS, FICD, FACD
For years, the health care industry has dominated the best jobs
in America list. Dentistry has repeatedly been ranked in the #1
spot until 2018 when U.S. News & World Report’s annual rank-
ings boosted software developers to the top spot for their
work/life balance, high salaries and potential for growth and
advancement. Dentistry still came in at the #2 position, but the
growing student debt issue continues to put pressure on new
dentists and long-term advancement and stability are more dif-
ficult in today’s competitive healthcare environment.
The American Dental Education Association (ADEA) reported
in 2017 that the average student debt of a graduating dentist is
$287,331 and growing. Roughly, 90% of new dentists have some
level of student debt. However, student debt does not prevent
or inhibit practice ownership. It is just another piece of your
financial portfolio that gets evaluated as you see how much
practice you can buy or start.
ership or buy-in opportunities. Lenders play a key role in
whether that dream is attained as they evaluate student vs. con-
sumer debt balances. Whatever practice model is your choice,
the fiscally responsible graduate will minimize consumer debt,
making student debt manageable and responsible based on the
educational path.
2. Seeking a trusted financial advisor early and often in your
career can help answer some questions and frame your deci-
sions. How much debt to say “yes” to? Do you have other
options? Do you have a retirement plan that is attainable and
proactive? What product fits your needs to save for your chil-
dren’s educational expenses? Annual reviews with your
resource team of CPA, attorney and financial advisor is critical
in achieving financial independence.
The ADA offers a student loan refinancing program through
Laurel Road that allows better interest rates with attainable
payoff schedules. This can provide consolidation of debt
as one moves closer to financial freedom.
3. As a professional, opportunities will arise to advance your
skills and expertise. Fully evaluate the CE and study clubs to
match your professional fulfillment as well as your business
model. Will you be able to implement the new procedures
and business practices to regain your investment and grow
your practice? How well will the new technique and equipment
blend into your current model to be able to treat patients
more effectively?
It seems that student debt influences many post-graduation
financial decisions. However, shifting focus to becoming finan-
cially practice-ready after graduation is worth the effort. Rec-
ognizing the pathway to financial success while in dental school,
residency programs or that first job can allow you to reach
financial independence sooner.
1. Responsible student debt includes tuition, books, fees and
modest living expenses. Everything else is a choice that is con-
sidered consumer debt and can grow the student debt burden
beyond its intent. As new dentists graduate and finish residen-
cies, they seek career paths which often include practice own-
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4. As you grow your practice and develop new relationships
professionally it is crucial that you find the best way to give back
to your profession. The dental industry is rapidly changing, and
it is up to all dentists to keep the patient at the center of all prac-
tice models. The legislative decisions impacting dentists and the
pressure of non-dentist owned practices in the competitive
healthcare landscape can have a greater impact on your success
than any crown margin. External factors commonly set the mar-
ket trends for mergers and acquisitions of all businesses. Dental
transitions are no different.
5. As your practice engine grows and your debt is reduced, there
will be new financial considerations that come to the forefront.