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Dentists up in arms over WDS CEO comments
By Donna Domino, Features Editor

May 17, 2012 -- Washington Dental Service's (WDS) CEO James Dwyer has offered a qualified apology for saying that dentists should work more to make up for deep reimbursement cuts the company made last year to some 4,000 dentists in the plan's network.

Dwyer, who earns $1.2 million a year, made the controversial comments during an interview with television station King 5, where he suggested that dentists could make up lost revenue by working harder.

"Number one, they could start working five days a week," Dwyer said, adding that dentists typically work three and a half days a week.

“They could start working five days a week.”
— James Dwyer, CEO, Washington Dental Service

In a letter posted on its website, the Washington State Dental Association (WSDA) called Dwyer's comments "outrageous and disrespectful."

Clinical time is only part of what dentists do, noted WSDA president Rod Wentworth, DDS. In addition to seeing patients, most dentists spend many hours managing the administrative responsibilities of owning a small business and work to stay current with the technical and scientific advancements in dentistry.

For example, Dr. Wentworth told DrBicuspid.com that he puts in between 10 and 11 hours during each of the four days he sees patients. And on his day off?

"I'm going to Costco to resupply the office. I'm coming in fixing things at the office. I'm doing laboratory work I couldn't do during the week to prepare for the next week. I'm doing computer and network stuff."

In addition, dentists are on call 24/7, Dr. Wentworth added.

"At Christmas a few years ago I got a call from a patient who had a sledding accident, and I came down here to see him," Dr. Wentworth recalled. "That's our obligation; that's what we do."

In a post to WDS's Facebook page, Dwyer said his comments were taken out of context.

"I can certainly understand my comments have upset some member dentists," he wrote.

But in a separate post on Facebook, the group Concerned Dentists of Washington State wrote, "Dwyer's arrogance came through loud and clear."

Far-reaching rate cuts

Dwyer and other WDS executives gave themselves 35% to 45% pay increases over the last five years and cut patient care reimbursements, all while operating as a nonprofit membership organization, Concerned Dentists added.

Executive pay totaled $5.8 million in 2010, and WDS was exempt from paying federal taxes on nearly $14 million in net income in 2010, according to another King 5 news story.

Last June the WDS-- a member of the Delta Dental Plans Association -- cut its reimbursement rates by 15%. The reduction applies across the board to Delta's Premier fee-for-service network for every dentist that participates with WDS.

The decision to reduce reimbursements rates was prompted by the ongoing economic crisis and growing competition from other insurance providers, including MetLife, United Concordia, and Aetna, according to Ron Inge, DDS, dental director and vice president of professional services for WDS.

WDS has also cut nonmember reimbursement rates by as much as 60%, according to Dr. Wentworth. In areas like Olympia, where state employees with WDS coverage can make up about 90% of a dentist's patient base, practitioners cannot remain solvent, he said.

"Until the rate cuts, dentists were willing to take the hit -- especially when they were longtime patients -- and patients were willing to pay more to go out of network," Dr. Wentworth explained. "After the cuts, it's really hurt those patients, because they're being squeezed to break their relationship with their dentist to instead go to a member dentist. I think it's hurt the doctor/patient relationship."

And reimbursement for some procedures is now so low that dentists may no longer offer them, he added. For example, the price of gold is so high that where dentists may have recommended gold crowns in the past, they may suggest different options now because of low reimbursements, according to Dr. Wentworth.

"In some cases they may pay you more to do less precious metal crowns instead of a gold crown, so there's also a financial incentive for dentists," he said.

Delta Dental to cut payments to Idaho dentists, September 27, 2011

Washington Dental Service to cut reimbursement fees 15%, April 26, 2011


Copyright © 2012 DrBicuspid.com

Last Updated cp 5/17/2012 10:42:35 AM

11 comments so far ...
5/17/2012 2:12:45 PM
26DrHusker
Dr. Wentworth said it very well.  We are working as many hours as anybody (I'd put my schedule up against that of a damn WDS insurance exec any day!!) managing our time carefully each and every day to not stray 15 minutes off schedule, no matter what condition or mood or level of comfort our patients present to us on any given day with care and compassion.  And the jackass Dwyer at WDS wants nothing more than to turn our office into a cattle shute while he pats himself on the back, cuts patient benefits and lines his pockets with the ill-gotten gains!!c 
5/18/2012 12:19:08 AM
Dr.K
I can't blame Dwyer for assuming that dentists keep a schedule similar to his own.  This poor guy never had the opportunity to serve as a health care provider, and obviously doesn't understand the first thing about it.  Who I would expect to understand would be the dentist board members who allowed WDS dentists to be voted out of power.  Why have we never heard anything from them, helping us to understand why these changes were necessary?  Or does a few hundred grand buy silence, also?
5/21/2012 1:00:07 PM
Denver dental
What is the ADA and the WDA doing about this?  I am seeing these fee cuts by delta dental and alot of talk but the bottom line is the fee cuts stay and we make less and still pay the ADA for what?
5/21/2012 1:09:56 PM
SteveCDDS
I don't represent the ADA, but I do know that they can't play much of a role in this kind of dispute, because while insurance companies are exempt from anti-trust actions (hence all the Deltas can collude to take these kind of punitive actions) trade associations are not.  ADA goes to Washington to fight at a higher level, including lobbying to cancel that anti-trust exemption.  The WSDA is similarly constrained, but they've been as supportive as possible.
5/21/2012 2:16:34 PM
Seasoned RDH
There is a similar situation in our community where a dermatologist challenged Premera Blue Cross and won and then the insurance company cut him out as a network provider.  He sent all the information he could to his patients asking them to make whatever choice they had to make regarding their coverage and his services.  He included information about the 'reserve' fund that was in the Billions for this company.  Maybe it's time to take WDS on and expose the hefty executive salaries.  Who's worth 1.2 million a year and how is this compensation determined?
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