Does the outcome of the US elections impact the Canadian dental marketplace?
Timothy Brown, CEO of ROI Corporation, spoke with Dr. Suham Alexander about the potential impact of the recent US elections on the increased interest in the Canadian dental marketplace.
Since the election, there has been increased traffic and interest in subscribing to ROI Corporation’s website and newsletters, respectively by US-based dentists, many of whom are presumably Canadians training or living and working in the United States.
With the more than adequate supply of dentists training and working in Canada, an influx of dentists trained in the US or further abroad would only further increase our supply of dental professionals while the number of patients, dental practices for sale and associate positions remain relatively unchanged.
This may create a positive environment for owners looking to sell their practice(s), but a highly competitive and less optimal one for buyers and new grads or others looking for good associate positions. For purchasers, dental practices are still considered sound investments by financial institutions, but it may not be unrealistic, in the future, for banks and other lenders to have more stringent requirements for borrowers. For example, they may require borrowers/buyers to have a down-payment and/or they may not finance 100% of the practice purchase price.
Read Tim’s piece on the topic (PDF)
The number of new dentists entering the Canadian market every year has increased substantially in the last few years.
This is due to the following reasons:
1. Graduates of dental schools in Australia, New Zealand, and Ireland are eligible for licensure exactly the same as graduates of Canadian and US schools.
2. Graduates of non-accredited programs (Foreign or internationally trained dentists) can challenge the new equivalency process and can become licensed in Canada.
The equivalency process consists of 3 parts:
1. The fundamental knowledge exam (multiple choice exam).
2. The clinical judgement exam (multiple choice exam)
3. Clinical exam (excersises on plastic teeth on a manikin)
The exams can be challenged by anyone holding a valid dental degree and permanent residence or Canadian citizenship are not required.
In 2014 and 2015, a total of 500 foreign trained dentists passed those exams and obtained their licenses in Canada. This number is equivalent to the class size of 10 dental schools in Canada!
There will definitely be winners and losers.
In my opinion, these are the winners and the reasons:
1. Dental supply companies: more customers.
2. Landlords: more customers
3. Patients: more competition results in better services and lower prices.
4. Established dentists especially those selling: higher asking price due to higher demand.
5. Brokers: easier sales due to increased demand for established practices.
The losers:
1. New dentists: tougher competition.
2. Most dentists: tougher competition.