Break-even Analysis of Medicaid versus Fee for Service in Orthodontic Practice: North Carolina as a Case Study

Break-even Analysis of Medicaid versus Fee for Service in Orthodontic Practice: North Carolina as a Case Study Public Deposited

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Creator

Murdock, John Edmon
- Affiliation: School of Dentistry, Department of Orthodontics

Abstract

The purpose of this study was to examine the potential profitability of treating patients covered by Medicaid in NC orthodontic practices using the break-even analysis. Questionnaires were mailed to 154 orthodontists in active practice in NC. Respondents were categorized into 4 groups based upon the number of 2005 Medicaid case starts. On a per case basis, assuming the break-even point had not been reached, three groups realized a potential profit for each Medicaid case treated. For each of the groups analyzed the inclusion of 5% Medicaid cases in the treatment pool did not substantially increase the practice break-even point. Assuming the break-point had been reached, all groups realized per case profits for each Medicaid case treated. Once the break-even point is reached, the inclusion of a small percentage of Medicaid patients can increase practice profitability while helping to address the current challenges with improving access to care for underserved populations.

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