
The Profitability Trap: Why Cutting Costs Won’t Save Your Practice
Let’s talk about something I see all the time in our world of dentistry.
Revenue dips a little. Overhead creeps up. PPO reimbursements feel… tight.
And what’s the first instinct?
“Let’s cut costs.”
You start eyeing the supply bill.
You question the fancy coffee in the breakroom.
You consider trimming team hours.
You contemplate buying gloves that feel like sandwich bags from 1997.
Now don’t get me wrong, efficiency matters. Waste is waste. Smart businesses run lean.
But here’s the problem.
Cost-cutting has a floor.
You can only squeeze so much toothpaste out of that tube before:
Team morale suffers
Patient experience declines
Clinical quality gets compromised
Or you just feel… cheap
That’s the profitability trap.
The Illusion of Saving
Let’s say you grind out a 2% savings on supplies.
You negotiate with vendors.
You bulk order.
You eliminate the good pens and replace them with the ones that barely write.
Congratulations, you saved a few thousand dollars.
Now compare that to this:
A 15% increase in PPO reimbursement.
Not by working harder.
Not by adding more columns.
Not by cramming in hygiene checks during lunch.
Just by being paid properly.
That 15% doesn’t trickle in slowly.
It drops almost entirely to your bottom line.
Because your rent didn’t increase.
Your payroll didn’t increase.
Your lab bill didn’t increase.
You simply stopped being underpaid.
The Lever Most Dentists Ignore
Here’s what fascinates me.
At Veritas Dental Resources, we routinely see practices obsessing over pennies, while leaving 15 to 30% on the table with insurance companies every single day.
Fifteen. To. Thirty. Percent.
That’s not trimming fat.
That’s amputating profit.
And here’s the kicker:
Most doctors assume their fees are “just the way they are.”
They’ve been told:
“That’s the standard fee schedule.”
“Everyone in your area is paid the same.”
“There’s no room to negotiate.”
Let me translate that:
“There’s no room to negotiate… unless you know how.”
Cost Cutting vs. Revenue Leverage
Think of it this way.
Cutting expenses is like picking up pennies from the couch cushions.
Negotiating PPO fees?
That’s pulling a lever that moves the entire machine.
You don’t need:
More new patients
More marketing spend
Longer hours
Cheaper materials
You need proper positioning.
And when reimbursement increases are done professionally and strategically, the math is beautiful.
A $1M PPO-heavy practice with a 15% gap?
That’s $150,000 annually.
Tell me again how much the coffee budget is.
The Mindset Shift
The real trap isn’t financial.
It’s psychological.
Dentists are trained to:
Control infection
Control prep margins
Control occlusion
So when profits tighten, we look for things we can control immediately.
Supplies.
Staff hours.
Subscriptions.
But the real power move is negotiating the biggest controllable variable in your practice:
Your reimbursement rates.
You already did the hard part.
You survived dental school.
You passed boards.
You built trust in your community.
Why should you accept fees that don’t reflect that?
Stop Hunting Pennies. Start Pulling Levers.
Efficiency is noble.
But profitability is strategic.
Stop crawling under the couch looking for spare change.
Stand up.
Walk to the control panel.
Pull the lever that actually moves the needle.
If your reimbursements haven’t been evaluated professionally in years, there’s a very real chance you’re sitting on unrealized profit.
And unlike cutting costs, this strategy doesn’t shrink your culture.
It strengthens it.
Because when profitability improves:
You can invest in better tech
You can reward your team
You can reduce your own stress
You can practice at the standard you believe in
That’s not greed.
That’s sustainability.
Ready to See What Your Real Profit Potential Looks Like?
If you’re tired of fighting over pennies while insurance companies quietly stack margins, it might be time to look at the numbers differently.
Your skill set is elite.
Your reimbursement should be too.
Benjamin Tuinei
Founder – Veritas Dental Resources, LLC
📞 888-808-4513
Services: PPO Fee Negotiators, PPO Fee Negotiating, Insurance Fee Negotiating, Insurance Credentialing, Insurance Verifications
Websites: www.VeritasDentalResources.com, www.VerusDental.com

