The mix of expenditures’ sources for dental services has also undergone major shifts (Figure 1). In 1960, out-of-pocket expenditures accounted for more than 97 percent of dental expenditures. Insurance as a source of dental expenditures increased rapidly through the 1970s, ’80s, and early ’90s, peaking at 52.3 percent of dental expenditures in 1996. Since then, insurance as a source of expenditures has decreased slowly. Government sources of dental expenditures were The trend data on dental expenditures are important because they form the economic foundation for the profession. These data show that spending for dental health care has increased both overall and per person. In addition, the trend is expected to continue for at least the next decade. The projected increase in real dental expenditures also means an increase in expenditures per dentist as well. If the forecast is accurate, real expenditures per dentist should increase by an average of 5.7 percent per year during the next decade. Barring a cycle of high inflation, dentists can expect their gross incomes to increase during the next decade as well.
The pieces are beginning to fit together. We have a sound economic forecast to add to the significant changes in dental manpower that were discussed in the previous article. These trends will undoubtedly have an impact on the practice of dentistry. In the final article in this series we will explore dental-practice trends and see how all these factors might change the dental practice of the future.