For many practice owners, operating an NHS contract may initially seem like a sensible and safe business decision. The perception of guaranteed income and a steady patient flow reduces the challenge of attracting patients and setting fees on a fully private basis. However, on closer examination, the financial viability of NHS dentistry is far from stable. In reality, many NHS practices operate at a loss, clawback can become a regular cycle, and in mixed practices, private dentistry often has to compensate for the shortfall in NHS funding.
The financial and emotional pitfalls
Under the UDA system, we have often heard about dentists in a compromised position with a patient’s care, completing necessary treatments at a financial loss because the UDA contract doesn’t cover the required costs. Price capping on a UDA contract also means that even as overhead costs—such as utility bills, equipment maintenance, and dental supplies—continue to rise, NHS reimbursement remains static, leaving practices struggling to cover expenses.
In addition, there is the issue of recruitment. Most associates are unwilling to work under NHS contracts due to the challenging workload, lower pay rates, and limitations on the care they can provide. As a result, many NHS practices struggle to recruit, burdening practice owners with meeting the UDA targets without the appropriate support.
Even if an in-depth financial analysis reveals that NHS dentistry is leading to a financial loss, many owners hesitate to move away from it due to their deep commitment to providing accessible care. They entered the profession to help people, and leaving the NHS can feel like abandoning that mission. However, despite their best efforts, many principals find it impossible to make NHS dentistry financially viable, leading to burnout and frustration. Our team has encountered this scenario many times and often connects clinicians with clients who have already converted—those who were once in the same position. This allows clinicians to hear firsthand about their journey and the key factors that led them to proceed with an NHS conversion.
Patients are more receptive to private dentistry
Patients, often unaware of these financial pressures, sometimes assume that dentists leaving the NHS act out of greed rather than necessity. Fortunately, we have seen that patient perception is shifting.
Patient awareness of the challenges in NHS dentistry has grown since the pandemic, driven by increased news coverage and the efforts of many clinicians who want to explain their decision to transition to private practice. This communication may take the form of verbal explanations, patient letters outlining the change, or even outreach through local social media groups and the local press. At Patient Plan Direct, we provide bespoke support to help with messaging for local news outlets when required to ensure it is clear that this decision is not about profit but, for many, a necessity due to an arguably broken system.
After thorough training from one of our conversion experts, a practice team can clearly and confidently educate patients on the benefits of private dental plans, encouraging signups when patients understand the following patient benefits:
- Regular appointments reduce the risk of serious oral issues developing.
- Private dentistry can be paid for via manageable monthly payments, making it affordable.
- Guaranteed appointments. There is no long waiting list for private dentistry.
- 24/7 accident and emergency cover for all plan patients, giving greater reassurance for oral care wherever they are.
Patients also value continuity of care and trust in their preferred clinician. If the only way to continue seeing them is by joining a dental plan, they are often willing to do so with little resistance.
Exploring an NHS to Private Dentistry Conversion
A strategic transition from NHS to private dentistry involves reshaping a practice’s business model so that private income replaces NHS income. At Patient Plan Direct, we support practices in evaluating their financial viability and implementing a structured transition plan. This involves:
A viability analysis. We assess practice dynamics, reviewing and considering specific indicators and areas that we know are key to a successful transition.
An in-depth financial analysis. We advise the ideal plan structure and forecast the dental plan revenue required to replace current NHS income (alongside private treatment income).
If an NHS conversion is not in a practice’s best interest, we advise against it. While this is rare, we would never recommend handing back an NHS contract unless we were confident it was a commercially viable decision.
The path to a more secure future
By carefully evaluating the true impact of an NHS contract, it may become clear that the illusion of a UDA contract providing adequate cash flow is nothing more than a misleading façade. If you’re questioning the sustainability of your NHS contract, now is the time to explore your options. Contact us for a viability analysis, and let us help you create a more profitable and sustainable private dental practice.