Real costs of dental care in private and public practices

The Chattanooga Project was a publicly funded program providing dental care to indigent children by private practice and public fixed and mobile clinics. Previous studies of the project have shown that the cost of providing dental care in public practices was lower than in private practices, and that this difference was not attributable either to the social characteristics of the children nor to the type of care provided. This article analyzes potential economic causes of the cost differences arising from the input-output relationships in each mode. Because the number and frequency of service types and productivity rates differed among the modes, a standard service package was developed. Productivity and costs were recalculated on the basis of this standard set of services. The results were that with services and productivity held constant the differences between private and public costs increased. The implications are that resources in the private practices were earning significantly higher returns than those in the public practices, and that public practices can offer viable economic alternatives to private practices in the provision of dental care.