Assessing the economic return of specializing in orthodontics or oral and maxillofacial surgery.

BACKGROUND: The authors determined the economic returns from an educational investment in the specialties of orthodontics and oral an maxillofacial surgery. They also addressed problems found in previous studies. METHODS: The marginal return for specializing in orthodontics or oral and maxillofacial surgery was determined using net present value and internal rate of return, or IRR, with the income of the general dentist serving as the common opportunity cost. Extreme scenario, threshold and one-way sensitivity analyses were used to account for variation in the data. RESULTS: The median group of orthodontists broke even 5.9 years after specialty training and had a working lifetime net return of $271,536 above that of general dentists; the IRR for them was 10.36 percent. The median group of oral and maxillofacial surgeons broke even 2.3 years after training and had a working lifetime net return of $587,563 above that of general dentists; the IRR for them was 25.30 percent. CONCLUSIONS: Under the most likely conditions, the authors found a positive economic return to dentists in both specialties from their additional dental training. PRACTICE IMPLICATIONS: The positive financial returns brought by specialization indicate that the demand for additional dental education should continue within an environment of increased educational investment costs.

Attributes of growth in the U.S. dental economy, 1950-89.

Previous research has established dentistry as a growth sector of the U.S. economy. This study examines the economic relationship between dentistry's growth and factors operating on the demand and supply sides of the dental market. Output, defined as real per capita dental expenditures, was hypothesized to be a function of consumer income, dental insurance and the supply of dentists. Data for the period 1950-89, were analyzed using a generalized least squares approach. The analysis supported the hypothesis, indicating a significant relationship between growth in the dental sector and economic market factors. The study concludes that dentistry's real growth since 1950 was: (1) induced by increases in demand, mainly attributable to insurance and to a lesser extent consumer incomes; and (2) supported by increases in supply. The findings provide support for the insurance hypothesis, which suggests that growth in dental insurance has had a significant impact on the dental economy in recent years.