The financial squeeze facing dentistry

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Dentists are facing compounding factors fueling financial troubles for their practices this year.

Three statistics to know from 2026:

1. Dental payer reimbursement rates continue to lag behind inflation, according to the American Dental Association’s “State of the U.S. Dental Economy” report for the second quarter of 2026. The reimbursement rate index, averaged across all payer types, has increased by 19% since January 2021. Inflation, however, was 27% over the same time period. When looking at the first six months of this year specifically, the reimbursement rate index increased by 1.1%, while inflation was at 1.8%.

2. Although economic confidence is trending upward for dentists, low reimbursement rates and other insurance challenges remain a cause for concern in the field. About 50% of dentists reported to the ADA that they are confident in the dental care sector, while 25.2% said they are skeptical. Roughly 34% of dentists attributed their skepticism to insurance pressures, while 21.2% said it was because of rising costs and inflation.

3. The cost of dental equipment and supplies increased by 23% since January 2021, while hourly earnings for dental office staff also increased by 23%. Overall inflation during this period has been 27%.

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