AbstractsEconomics

The purpose of this study was to research the feasibility of integrating fee-for-service dental operations, with the existing prepaid dental operations of XYZ Health Plan (XYZHP), a health maintenance organization (HMO). The study researched XYZHP???s capacity to deliver the proposed services at each dental center, with specific and detailed financial and enrollment analysis, and financial and operational assumptions. This feasibility project consisted of two major studies. First, a needs assessment study was conducted to determine the need for dentistry within the service areas of the dental centers. Dentist-to-population ratios were analyzed to assess the need for dental care. The existing prepaid dental operations of XYZHP were also researched, to determine the capacity and need for expansion. Secondly, an economic feasibility study was conducted to research the financial feasibility of the proposed integration project. The main impetus of the study was to determine whether the integration project would increase XYZHP???s financial profits for the Dental Department. Parallels were drawn throughout the study on enrollment and staffing of the current and projected dental operations. In summary, it has been found that the net income of XYZHP would increase by $737,719, in accordance with the detailed increase in enrollment and staff, discussed within the context of this graduate project. The estimated net income would increase from $215,300 to $953,019. The estimated net income per dentist would increase from $9,968 to $18,327. The number of patient encounters per year would also increase from 78,624 to 189,280, representing a 60% operational increase. In conclusion, a need for expanded dental services does exist within a number of the designated service areas. Also, the integration project has been found to be economically feasible, by significantly increasing the net profits of the Dental Department of XYZHP.