Sunk-cost fallacy in dental practice
The sunk-cost fallacy is where someone invests in a course of action and sticks to it even though abandoning it would clearly be beneficial.
When I visit dental practices I often see examples of the sunk-cost fallacy. In fact, most of the times when I see a dentist doing something financially counterproductive the sunk cost fallacy is at work.
I have even fallen victim to it myself on occasion.
For example, many years ago I bought a CAD/CAM machine. In spite of my best and most conscientious efforts I personally could not produce results that were as good (or as time effective) as my laboratory made inlays or onlays.
I should have written the $60,000 I spent on the machine off and gone back to doing laboratory made inlays and onlays. Instead I persevered well beyond the point where it made any economic or clinical sense.
The reason was that I was emotionally (and financially) invested in the machine and didn’t want to admit that I’d made a mistake. The $60,000 was a sunk-cost and I wanted to make it pay off, no matter what.
In your daily practice of dentistry do you have any sunk-costs that you should abandon? Examples might be:
An expensive piece of equipment such as I mention above.
A staff member who you have invested a lot of effort into training but who has never performed up to standard.
A treatment technique that you learnt at a weekend course that produces erratic, unreliable results.
A practice renovation that does not flow well.
An implant system that is no longer state-of-the-art.
A large supply of composite filling material that you bought on special but that you find hard to use.
I’m sure you get the idea.
My recommendation in all these situations is to cut your losses, recognise you made a mistake (we all do!), take the hit and move on.
The day I finally admitted my mistake and ditched my CAD/CAM machine was such a relief. My only regret was that I hadn’t done it much sooner.
