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The NHS provision of dentistry is made through
the General Dental Services (GDS). Dentists working in the GDS are
remunerated primarily on an item of service basis (i.e. fees for work
undertaken) together with some capitation payments. The dental profession
has maintained for many years that their Target Average Gross Income
(TAGI), out of which they must cover practice expenses as well as
their personal remuneration, is inadequate. Despite the introduction
of a new contract in 1990 and subsequent amendments to the system,
more and more dentists have moved into private practice. During the
late 1990s and early 2000s the government reaffirmed its commitment
to NHS dentistry and made funding available to improve access to NHS
dental services. However, the increases to the NHS fee scale considered
by the professional bodies to be essential to the continuing provision
of NHS dentistry have not been made.
There are approximately 22,000 NHS general dental practitioners in
Great Britain, many of whom are sole practitioners. There would, however,
appear to be a trend towards larger practices.
Demand for the dental practitioner's services remains strong, but
uncertainty surrounding the future direction NHS dentistry will take
still exists. Practitioners maintain that NHS remuneration is inadequate
to provide the quality of service they would like. Many have moved
into private practice.
Dentists practising in the UK are regulated by the General Dental
Council (GDC), with which they must register. Dentists working in
the NHS are self-employed contractors responsible for running their
own businesses. They may work alone, in partnership or alongside an
associate. Practice staff may include receptionists, dental nurses,
dental hygienists and technicians. Some dentists also offer private
treatment.
Despite the shift towards private practice, income from NHS sources
generally accounts for the greatest part of practice income. Item
of service fees account for between 75% and 80% of NHS gross fees.
Gross fee income may fluctuate for a number of reasons, including
changes to the NHS remuneration system, a change in practice size
or working patterns, a move towards private practice or an increase
in local competition. Output tends to decline as the practitioner
ages. According to the Department of Health, average earnings for
female dentists are approximately 68% of the male average.
Dental practices must keep comprehensive details of both NHS and private
patients. Many practices have installed computers and specialist software
to assist with this.
Approximately 26% of NHS patients are exempt or eligible for remission
of charges. Those patients who do have to pay normally do so at the
conclusion of a course of treatment. The patient charge is currently
80% of the fee, up to a maximum of £360 (£345 in Wales).
Dental practices generally put out the construction of dental appliances
to specialist dental laboratories. The dental lab sector is intensely
competitive and practices are likely to be offered generous terms.
Dental equipment and practice sundries may be obtained from specialist
suppliers and/or local dental wholesalers.
Performance in the dental practice sector may be assessed in terms
of the relationship between practice expenses and gross fee income,
and the relationship between lab fees/dental consumables and gross
fee income. Practice expenses generally average around 54% of gross
fees, while lab fees/dental consumables account for some 19% of gross
fees.
The relationship between expenses and fee income can vary for a number
of reasons, including changes to the NHS remuneration system, a move
towards private practice, a change in the number of hours worked or
an increase in practice expenses not reflected in an increase in the
fee scale.
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| Reproduced from CCH
Business Focus with the kind permission of CCH Information.
For more information on CCH Business Focus please go to
www.cch.co.uk
or telephone CCH Customer Services on: 0870 241
5719. |
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