October 9, 2025

As 2025 winds down, private dental practices should prepare for a fee increase now.

Overhead costs continue to rise, reimbursement rates lag behind inflation, and economic uncertainty is tightening margins more than ever. A planned, modest adjustment to your fee schedule before the new year helps you maintain profitability, support your team, and continue delivering exceptional care in 2026.

Make Annual Increases a Habit

A modest annual increase of around 5% remains a recommended best practice for keeping pace with rising costs. Regular, across-the-board adjustments help ensure your fees reflect the true cost of providing care, including:

• Supplies and lab costs.
  
  
• Rent, utilities, and technology investments.
  
  
• Staff wages and benefits.
  
  

Waiting several years and then attempting a large catch-up hike is more likely to upset patients than smaller, predictable increases. Even a 3% adjustment can make a meaningful difference with minimal pushback.

Example: The Economic Impact of a 5% Increase

• Consider a practice collecting $1.2 million annually.
  
  
  • A five percent across-the-board fee increase generates about $60,000 in additional annual revenue.
    
    

That amount could fund a new team member, upgrade key technology, fund your 401(k), or bolster reserves without adding new patients or taking on debt. When overhead remains stable, most increase flows directly to the bottom line, strengthening the practice's financial resilience.

Rising Overhead Demands Attention

Operating costs are rising even as inflation has cooled in other sectors. The ADA Health Policy Institute reports that dental equipment and supply prices rose about 5% between January and May 2025, and most dentists experienced increases beyond that. Staffing challenges continue to be a significant cost driver:

• 62% of Dentists say recruiting and retaining hygienists and assistants is their top challenge.
  
  
• 90% Report hiring hygienists is very or extremely difficult, leading to increased wages and benefits.
  
  

On average, overhead should remain between 59% and 65% of gross revenue, but staffing shortages push that range higher. Your fees must keep pace with these realities to sustain quality care and retain valued team members.

Don’t Let Fear Hold You Back

Many clinicians worry that fee increases will drive patients away. Most patients accept small, uniform annual adjustments because they understand costs rise everywhere. A consistent percentage increase across all procedures:

• Keeps your fee schedule balanced.
  
  
• Simplifies implementation compared to selective changes.
  
  
• Prevents underpricing certain services over time.
  
  

Delaying fee increases for too long can limit your ability to invest in technology, reward staff appropriately, and maintain service standards. Over time, this can affect both patient experience and growth potential.

Know Your Market Position

Before finalizing any adjustments, compare your fees to other practices in your area. Benchmarking services that analyze local insurance claim data can help determine whether your Usual, Customary, and Reasonable fees align with regional trends. This step ensures that your adjustments are fair, competitive, and supported by data.

Start Planning for 2026 Now

Fee adjustments are most effective when they are strategic and planned. Use the last quarter of the year to:

• Review financial statements and overhead categories, especially wages, lab fees, and supplies.
  
  
• Decide on the size and timing of your increase. Early in the year is ideal.
  
  
• Prepare your front desk team to communicate changes confidently and clearly.
  
  

According to the ADA HPI's Q2 2025 report, most dentists expect costs to continue climbing in the next six months. Proactive planning now ensures you stay ahead of inflation rather than playing catch-up later.

Regular, thoughtful fee increases are essential to a healthy, thriving practice. They protect margins against rising overhead, support continued investment in technology and people, and allow you to sustain high-quality care. A modest 5% increase may seem small, but its cumulative impact is powerful over time.

If you would like help benchmarking your fees, analyzing your financials, or projecting the impact of an increase, we are here for you!

Not sure where to start? Contact us today!

References

American Dental Association, Health Policy Institute. (2025). State of the U.S. dental economy: Q2 2025 report. https://www.ada.org/-/media/project/ada-organization/ada/ada-org/files/resources/research/hpi/state_us_dental_economy_q22025.pdf.

SouthState Bank. (2025). Practice finance: Smarter strategies for dentists in 2025. https://www.southstatebank.com/commercial/stories-and-insights/practice-finance-smarter-strategies-for-dentists.