Having an in-office lab versus outsourcing all lab work is a decision that comes with various pros and cons, each affecting the efficiency, cost, and quality of dental care in different ways. Here are the pros and cons. Technology has created a new paradigm of the way we look at prosthetic fabrication. The evolution of science and materials, access to knowledge, changing fee structures and patient demands have led to more progressive standards.
In-Office Lab PROS:
Improved Coordination and Communication:
Having a dental lab on-site allows for direct and immediate communication between the dentist and the dental technicians. This close collaboration can lead to more accurate and personalized dental restorations, as any adjustments or customizations can be discussed and implemented swiftly. It is your team that understands your culture and patient requirements firsthand.
Faster Turnaround Times:
With a dental lab in your practice, the time it takes to produce dental restorations is significantly reduced. This means patients can receive their crowns, bridges, dentures, and other prosthetic devices much quicker than if these items were outsourced to an external lab, enhancing patient satisfaction.
Quality Control:
An in-house lab gives you direct oversight of the fabrication process, allowing you to ensure that the materials and techniques used meet your high standards. This control can lead to higher quality outcomes and fewer remakes or adjustments.
Convenience for Patients:
Patients benefit from quicker, often same-day, services, reducing the need for multiple appointments. This convenience can improve patient satisfaction and loyalty, as it simplifies their treatment process. Imagine the improved publicity with word-of-mouth advertising.
Cost Efficiency:
Although the initial setup of a dental lab can be an investment, over time, it may reduce the overall costs associated with outsourcing lab work. For example, think of how much you spend on shipping and receiving back and forth. Additionally, it can increase your practice’s revenue by keeping all services in-house.
Customization and Creativity:
Having your own lab allows you to experiment and customize dental solutions to a greater extent than might be possible when working with an external lab. This creative freedom can lead to innovative approaches and better outcomes for complex dental cases.
Educational Opportunities:
An in-house lab can serve as a learning resource for you and your staff. It provides firsthand insights into the technical aspects of dental restoration work, enriching the knowledge base within your practice.
Competitive Advantage:
Offering comprehensive services, including rapid turnaround times for dental prosthetics, can set your practice apart from others. This competitive edge can attract more patients seeking convenience and high-quality care.
Practice Valuation:
Having an in-office dental lab will improve the value of your practice, and over time will increase its worth when it is time to sell or merge.
The “What If” Factor:
What if you could advertise your lab services to other peer dentists and turn your lab into a profit center and not a cost center? This could build a new revenue stream and improve the value of your practice (s) and business.
In-Office Lab CONS:
High Initial Investment:
Setting up an in-office lab requires significant upfront investment in equipment, materials, and skilled technicians. This can be a challenge for smaller practices or those with limited capital. However, many suppliers and dental distribution companies offer financing to defray the cash outlay.
Operational Challenges:
Running an in-house lab requires managing additional staff, maintaining equipment, and ensuring the lab meets regulatory standards, which can add complexity to the practice’s operations.
Space Requirements:
Space inside a dental practice is the number one reason many existing practices cannot build out an in-office lab. A lab within a dental practice needs dedicated space. This might be challenging for existing practice locations or “older” less modern office spaces. With some practices it simply is not feasible unless there is an opportunity for expansion or relocation.
Training and Continuing Education:
Keeping up with the latest lab technologies and techniques requires ongoing education and training for lab technicians, which can be costly and time-consuming.
Outsourcing Lab Work Pros:
No Initial Capital Outlay:
Outsourcing eliminates the need for a significant initial investment in lab equipment and materials. Many practices align themselves with one or more qualified labs. Sometimes, however, geographic distance and involvement in difficult cases can be challenging.
Access to Specialists:
Labs often have specialists for different types of dental work, potentially improving the quality of certain complex restorations. If you are outsourcing your work, make sure you are working with CTD (certified dental technicians) who have been trained, make sure you understand the fee structure and lead times for completion.
No Operational Hassles:
Outsourcing lab work means the dental practice does not have to deal with the operational challenges of running a lab, including staffing and maintenance. However, you still need to maintain a close relationship with the lab(s) and oversee their work for QC purposes. Also, the scripts that you write and send in must be clear and precise to avoid delays and issues.
Flexibility:
Practices can choose among multiple labs based on quality, cost, and turnaround times, providing flexibility to meet patient needs and preferences. This can be challenging in some rural areas where choices may be limited. You can have your work sent anywhere but may not be able to maintain a close relationship.
Outsourcing Lab Work Cons:
Longer Turnaround Times:
Depending on the lab’s location and workload, outsourced work might have longer turnaround times, potentially leading to longer treatment times for patients. Dental labs are pressured to serve long term customers or “good customers” first causing further delays, and sometimes labor constraints can be an issue.
Less Control Over the Process:
When lab work is outsourced, dentists have less control over the manufacturing process, materials used, and the potential for needing remakes due to misunderstandings or errors. When working with dental labs, it is essential to write clear and specific scripts, maintain a close relationship, and understand their methods for fabricating prosthetics.
Communication Barriers:
Communication with external labs can sometimes be less efficient than with an in-house team, possibly affecting the quality and customization of the work. Dental lab technicians are conscientious and caring individuals, but sometimes get overwhelmed with the amount of work there is to be completed. They do not often have time to talk on the phone or check emails.
Dependence on Third Parties:
Relying on external labs means being subject to their schedules, quality control, and potential business risks (e.g., a lab going out of business). The dental lab space is consolidating. The number of independent laboratories is much smaller today than it was 5 or 10 years ago.
Ultimately, the choice between an in-office lab and outsourcing depends on your practice’s specific needs, budget, space, and the desire to directly manage the production of dental appliances. You have to prioritize your resources according to the practice’s value proposition to its patients and shareholders. In reality what many practices do is something akin to a hybrid approach. They have a small in-office lab with minimal startup costs for routine procedures they can control easily and perform more quickly. Then they partner with one or two qualified labs with CTD’s for complicated, and perhaps more expensive procedures. Balancing these factors will help you make the best decision for your practice and your patients.
