Will GST Put Dentistry In A Big Loss Or We Can Outperform Against GST?

 

Will GST Put Dentistry In A Big Loss Or We Can Outperform Against GST?

I am Dr. Nilesh Bhimani (B.D.S.), a senior Dental Surgeon from Surat (Guj.) & I would like to throw some lights on effect of GST on Dentistry! Goods and service tax (GST) is one of the most revolutionary step in history of Indian Tax System and future will witness it's real effect. Healthcare services are exempt from GST according to GST Act, 2016. So we don't need to charge GST on out treatment charges as we are not selling products, we provide only healthcare services.

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There is a lot of buzz about GST; I see many people are talking and discussing whether GST is good or bad on the contrary I know many dentists who neither care for the GST effects nor even willing to know how it is actually going to affect the future of private dental practice. I am writing this blog for all those dentists who are curious & wish to know the after effects of GST with the hope that you will take it positively.

Let's understand how GST is going to affect future and success of your private dental practice. Here are few points which I noticed and would want you to pay attention.

 

A. All standard Laboratories have transform tax statement from 5% VAT to 12% GST, means 7% rise on lab bills.

 

B. All material companies have changed taxation from 5-12% to 12-18% or up to 28% in few cases, means 7-16% rise in billing. 

It's a big amount really..!

 

C. My clinic electricity, telephone , SMC tax, stationary, maintenance, printing, magazines or other monthly based expenses rise from 5% VAT to 12% GST, means 7% rise.

 

D. My clinic Insurance, Membership fees, Conferences fees etc will be also raising to some extent.

E. My staff salaries, doctor's salaries etc will have to be raised in coming months as they have to compensate for their increased expenses due to implementation of GST.

 

F. Most important is my personal expenses.

 

Now onwards my life insurance policies, general insurance policies, lifestyle expenses, food bills, school fees, Tuition fees, shopping , holidays (which is maximum like 28% on luxury holidays)everything I do on my day to day expenses will rise like anything. Friends, We say everyone that we don't need to add GST on patients treatment bills because we are exempted.

 

But are we really exempted on GST even after paying all above expenses?

There is only one solution for all above and that's none other than RAISE YOUR TREATMENT CHARGES!

 

From 1 July onwards minimum 10% rise on your treatment charges would only compensate for the GST which you will pay now onwards & don't think that you have raised charges, instead you have compensated your loss only.! In addition, 6-8% is your inflation rate which means every year your cost of same expenses increases at this rate over a period of one year. So 6-8% hike in charges will again compensates loss of steady income year by year.

 

So Friends, 16-18% (10% GST effect + 6-8% Inflation) rise in your treatment charges will only make you stable in your income year by year. Those who can add more than 18% rise in charges are real brave dentist and I will be happy to add them in my friend list. In fact, this is the best chance to raise your chrages as a momentum. Agreed people will ask you that it is not in your branch but you can tell them that your lab bills, material expense, clinic expense everything rise by more than 10-15% and so you have no other option if you want to justify but most of the times people will automatically justify you without asking about it.

 

I have tried to give you some striking GST effects on your dental practice. Hope we all put a step ahead for a successful dental carrier! Try it today..! Keep Smiling

Source : DentistFriend

Things You Should Know Before Setting Up Private Dental Practice

 

Things You Should Know Before Setting Up Private Dental Practice

Many of us are surrounded by people who have negative approach towards the Dental Profession. Staying arround such people... we also start to think negatively.

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I know dental profession is getting tough day by day. I agree salary of a BDS graduate is less than a labourer’s salary under MNREGA. I know PG seats are limited. Not only this but even after doing Postgraduation (MDS), the salaries in academics are shrinking these days. Dental Clinic is no more a cakewalk as everyone wants to start dental practice in a city which is already overcrowded with too many clinics. Many of you are leaving the profession to study MPH/MHA or to work at Pharmacovigilance data centers.

 

But still I believe that we are in one of the best professions in India. We are the Kings/Queens at our places of work. Do not loose your heart... Follow the 7 golden tips for successful Dental Practice.

 

 

1. Clinical Skills:

 

Master minimally in basic dental procedures before setting up your own practice such as Extractions, RCT, Esthetic Cosmetic Work, FPD, CD.

 

 

2. Invest Sensibly:

 

Whenever you open up your practice, do not waste your money much on interiors & show business initially. Instead invest in dental materials and equipments. Trust me nobody bothers it if you are good at your work. I have seen people investing 70% in showbiz & 30% on Dental materials/equipments.

Result: You know they cry after 6 months.

 

 

3. Have Patience: 

 

It will be fruitful only if you remain calm. Dentistry is like every other business. In the 1st year of your practice you pay from your pocket. In 2nd year you reach a break even point i.e there is NO PROFIT NO LOSS. Its only from the 3rd year that you start to earn. 

 

Suppose you are relocating after practicing for 4-5 years at some place; then regardless of your experience you will still have to have patience because your practice takes average 3 years to show profitability.

 

 

4. Keep Control on Yourself: 

 

Do not do Superman stuff in the initial years of your practice. Its very difficult to earn a name but very easy to spoil your name. Do case selection very effectively. If you don't have confidence about the case then either call a specialist or refer it to some experienced doctor. This way you might loose some money but you will make sure that it won't spoil your name.

 

 

5. Continue Learning: 

 

Attend CDE's & Conferences regularly. It will help you to remain confident of your profession and will also keep you up to the date with the new advances in the field.

6. Money Factor: 

 

Never underestimate youself. Charging less is not going to help you in long term. (Read The Price War In Dentistry By Dr.Pranav Agale). Never let the patient bargain; better let him/her go if he/she tries to bargains. Most of them will come back to you for the treatment at your described costs within a week after visiting 2-3 clinics in their vicinity. Always remember good things never come cheap.

 

TELL ME IF ANY PATIENT BARGAINS WITH AN EYE SURGEON OR  A HEART SURGEON? THEN WHY US???

 

 

7. Marketing: 

 

Do regular marketing for your clinic. Because your clinic is just like a CORPORATE firm and you are the boss (MD).  So you have to do all sorts of advertisements (ofcourse ethically) to let patient's know that YOU EXIST.

 

MORE INPUTS FROM SENIORS AND FRIENDS ARE WELCOME.

Source : DentistFriend