November 9, 2020
What You Need to Know about the ADA House of Delegates 2021 Budget
The American Dental Association’s House of Delegates approved its 2021 budget during a virtual meeting on Oct. 19. According to a news release, “The budget will bring anticipated revenues of $128,840,000 against $134,803,000 in expenses, generating a net loss of $5,963,000 before reserves.” Here’s how this breaks down and what it all means for your dental practice.
To keep up with inflation and help offset a projected 4.4% deficit the ADA is facing as a result of COVID-19, dues have increased $8. Resolution 88 sets dues for next year at $573, plus the implementation it takes to streamline dues that were adopted by the 2019 House of Delegates. This eliminates the discount for active life membership and shortens the discount period for recent dental school graduates.
While ADA Treasurer Ted Sherwin, D.D.S., said he is optimistic about the ADA’s future, he noted in his report to the delegates the 2021 budget will “strategically use reserves” to retain critical resources to continue to respond to the needs of member dentists during the COVID-19 pandemic. Dr. Sherwin added the unpredictable nature of the pandemic has made “planning for a budget especially difficult.”
Dr. Sherwin noted reserves “have enabled us to endure the hardships of the current crisis while making a strategic investment for the future despite our short-term troubles.” This includes creating the ADA Science and Research Institute, which combines the ADA Science Institute in Chicago with the innovation and technology research group in Gaithersburg, Maryland, “to enhance the ADA’s ability to produce basic and translational science for the benefit of dentists and their patients,” according to the news release. The pandemic has also highlighted an increased need for a digital transformation to find new ways for members to engage with the ADA.
“The economic fallout of COVID-19 has created a need for fiscal discipline and focus,” said Dr. Klemmedson, who was confirmed as ADA president earlier in the day. “Fortunately, ADA foresight has allowed for reserves accumulation that will allow us to weather much of the effects of this pandemic. However, investment in assuring our future is more important than ever. I am confident that the Association will continue to maintain financial sustainability as we remain committed to the ADA’s mission to serve the profession and the public.”
Contact the experts at Professional Transition Strategies to learn more about how to plan for 2021 and if a dental practice transition is in your future.