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:
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:
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:
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:
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:
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:
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:
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