I just now realized why WDS is called a “not-for-profit” — it’s a “not-for-profit-for dentists.” Finally, the shoe has dropped, and we should all realize that WDS is just another PPO driven insurance company whose customer is big business, Boeing and others. Its insured are an incidental nuisance, and dentists merely a necessary evil.
Executives at Eastman Kodak were concerned about increasing competition in their industry. They decided to conduct a study to determine the effects of price increases and price decreases on their profitability. The Kodak study assumed a 25% profit percentage (75% overhead) which is rather convenient for our purposes because it is fairly close to the 30% net income the ADA reports as the average dentist’s net income today. Using this 25% profit assumption and the corresponding 75% cost assumption, here’s what the study determined: