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Resurgent inflation and dollar devaluation
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You don't have to Google very hard to find strong opinions on all sides about the future trend for inflation. Obviously, not even central bankers have a 20/20 crystal ball. However, the toughest scenario for a largely price-fixed fee profession like ophthalmology is one in which dollar-denominated fees are uncontrollably stagnant or falling, while dollar-denominated practice costs are rising with inflation.
Beloved billionaire Warren Buffett joins a chorus of folks concerned about the unsustainable federal deficit, the growing debt, and rising prospects for inflation and a drop in the dollar's value. In a nod to global warming, he said, "The unchecked emissions of dollars will certainly cause their purchasing power to melt the way runaway carbon emissions will probably melt icebergs." If this occurs, key practice cost inputs like staffing, facilities and technology could climb sharply as a percentage of fixed revenue amid shrinking profits.
Get more expert perspective from John Pinto live at Hawaiian Eye 2010, to be held January 17-22, 2010 at the Grand Hyatt Kauai. Learn more at OSNHawaiianEye.com