January 30, 2025

The American Dental Association’s Health Policy Institute recently released its Economic Outlook and Emerging Issues in Dentistry Q4 2024 report.

This report offers insight into the industry's current state and outlook. Let’s dive into what the report says and what it means for you as a private dental practice owner.

Who Took the Survey?

The ADA HPI survey received responses from 954 dentists, including 794 private practice owners, representing diverse practice sizes, geographies, and demographics. Notably:

• Ownership Status: 83% of respondents were owner dentists.
  
  
• Practice Size: 54% were solo practitioners, while 40% worked in practices with 2–9 dentists.
  
  
• Geography: Respondents were evenly distributed across urban, suburban, and rural areas.
  
  
• Demographics: The survey included respondents from varied age groups, with a significant portion aged 45–64 and diverse racial and ethnic backgrounds​.
  
  

Let's move on to the findings and what they mean for your practice!

1. Staffing Challenges Continue

Hiring is still tough. Over the past few months, more than a third of practices have been looking for dental assistants or hygienists. Nearly 80% said it was extremely challenging to hire hygienists, and dental assistants were not far behind​​.

What You Can Do About It:

• Tap into training programs: Connect with local hygiene and dental assistant schools or community colleges to create a hiring pipeline.
  
  
• Show your team some love: Retention is easier than recruiting! Think about perks like flexible schedules, bonuses, or growth opportunities.
  
  
• Think short-term fixes: Temporary staffing agencies or cross-training your existing team might help bridge the gap.
  
  

2. Feeling Better About the Economy

The good news? Dentists are feeling more optimistic. Confidence in the economy, whether it is their practice, the dental sector, or the U.S. overall, is on the rise compared to earlier in 2024​.

What This Means for You: With a more positive outlook, it is a great time to plan for growth. Consider:

• Revamping your marketing to attract new patients.
  
  
• Upgrading your tech to streamline operations or improve patient care.
  
  
• Setting some stretch goals for revenue growth in 2025.
  
  

3. Wait Times Are Shrinking

Better news for patients (and your team): Wait times for new appointments are down to an average of just under 14 days. That is an improvement compared to last year and may indicate that practices are getting more efficient​.

Tips to Keep It Up:

• Use scheduling software to fill gaps and reduce no-shows.
  
  
• Train your front office team to optimize scheduling workflows. For more on this, check out our December 2024 article, here: Using a High Value Short-Notice List to Fill Schedule Gaps.
  
  
• Regularly ask patients for feedback on their experience to make adjustments.
  
  

It is no surprise that overhead costs, such as wages, supplies, and rent, are one of the biggest worries for 2025. Almost half of dentists pointed to rising expenses as a top challenge​​.

How to Tackle This:

• Track every dollar: Regularly review your expenses and look for places to cut back without sacrificing quality.
  
  
• Go green: Energy-efficient lighting and equipment can lower utility bills.
  
  
• Talk to vendors: Negotiate better rates with suppliers or consider switching to more cost-effective alternatives.
  
  

5. Switching to a Fee-For-Service Model

About 30% of dentists surveyed dropped at least one insurance network in 2024, and this trend is not slowing down, as many dentists are thinking about doing the same in 2025​​.

What You Should Keep in Mind:

• Educate patients: Let them know how staying with your practice benefits their care, even if you are no longer in-network. The first step in going out of network is training your team to communicate the “why” to the patients. Communication is key and should begin well before you start dropping plans.
  
  
• Start slow: Start by dropping a PPO used by the smallest number of patients, gain some experience and confidence, evaluate how it went, and when ready, repeat with the next PPO.
  
  
• Flexible financing: If you have not already done so, offer your patients third-party financing such as Care Credit.
  
  

6. Investing in the Future

Despite challenges, dentists are still investing in their practices. In 2024, more than half added staff, nearly 30% upgraded software, and 30% bought major equipment. Looking ahead, 45% plan to hire more team members in 2025​​.

Where You Can Focus:

• Patient-focused tech: Think about tools like digital imaging systems or online scheduling to wow your patients.
  
  
• Streamlining operations: Practice management software or automation tools can make life easier for your team.
  
  
• Team training: Invest in training for your staff to get the most out of new tools. Remember to cross-train the most critical roles wherever possible.
  
  

The ADA HPI report highlights some significant, persistent challenges, like hiring struggles and rising costs, but it also shows a lot of room for growth. Whether through recruiting and hiring strategies, cost management, or investments, private practices can thrive in 2025.

The key is to stay adaptable and proactive. Keep an eye on these trends, and don’t be afraid to try new things to keep your practice growing and your patients happy. For more insights and resources, visit the ADA Health Policy Institute at ADA.org/HPI. If you haven't already, consider participating in their ongoing surveys.

Not sure where to start? Contact us today!

References

https://www.ada.org/resources/research/health-policy-institute/economic-outlook-and-emerging-issues