Here are six recent updates that have led to optimism and skepticism in the dental industry:
Good
Artificial intelligence innovation
AI companies are continuing to expand ways for their technology to be used in dental practices, and industry leaders are expecting AI to soon change how every task is completed.
Earlier this year, Alta AI launched a platform that allows hygienists to more quickly chart, record notes and access patient information. Planet DDS and Pearl also teamed up to launch AI Assist, which provides diagnostic insights to DSOs and multilocation practices by analyzing patient X-rays. Most recently, VideaHealth launched ClaimsAI, an RCM platform that has resulted in up to 90% faster claim submissions for dental practices.
DSO investments
After a slower last couple of years, DSO activity is starting to pick up again thanks to new funding from investors.
Some of the DSOs that have gained new funding this year include Allied OMS, OMS360, Max Surgical Specialty Management, Blue Cloud Pediatric Surgery Centers and Silver Creek Dental Partners.
Several DSOs have also expanded their networks into new states this year, including Imagen Dental Partners, Phase 1 Equity and Flagship Specialty Partners.
Hiring
Although the U.S. saw disappointing results for employment in June, the healthcare sector saw reasonable gains that could potentially point to continued growth.
The Bureau of Labor Statistics released its “Job Openings and Labor Turnover” report July 29, leading to discussions about slowing economic growth. However, hospitals, physician offices and dental offices added a surprising 55,400 jobs. Dental offices specifically added 7,100 employees.
While staff recruitment has continued to be a challenge for dentistry, the jobs report is leading some executives to believe a turnaround could be coming soon.
Bad news
Medicaid cuts
The One Big Beautiful Bill Act, which was signed into law July 4, is expected to increase the national debt by $3.3 trillion, and lead to a decrease in Medicaid spending by nearly $1 trillion. The legislation has been criticized by many healthcare organizations, with many leaders denouncing the bill’s cuts to healthcare. Dental organizations have criticized the budget for its potential impact on Medicaid, with the CareQuest Institute for Oral Health calling the bill’s passage a “dangerous setback” for dentistry.
ADHA President Lancette VanGuilder said there are several provisions of the bill that decrease federal support for Medicaid, including new work requirements and restrictions on state financing. She said the reduction of Medicaid dental benefits could lead to increased rates of untreated oral disease, a greater strain on emergency departments and other long-term health and economic consequences. Many dental industry leaders have also shared their concerns that the budget will lead states to remove dental benefits from Medicaid.
Anti-fluoride actions
Efforts to end community water fluoridation and limit the mineral’s use at the state and federal level are worrying dentists for their potential impact on oral health.
In April, the Environmental Protection Agency said it will “expeditiously review” new information on the potential health risks of fluoride. The move came as HHS Secretary Robert F. Kennedy Jr. announced that he would advise the CDC to stop recommending the addition of fluoride to public water supplies. Additionally, the FDA said it would begin removing ingestible fluoride prescription drug products for children.
The American Fluoridation Society recently questioned EPA’s ability to conduct an impartial review due to RFK Jr.’s viewpoints, and said the attacks on fluoride are based on a “misrepresentation of the evidence.”
Legislators are working to ensure future oral health-related decisions are made based on non-partisan scientific evidence. In July, U.S. Rep. Emanuel Cleaver II introduced legislation that would require EPA to consult and publish research by independent and nonpartisan experts at the National Academies of Sciences, Engineering, and Medicine when proposing new water fluoridation guidance.
Delta Dental acquisition
Delta Dental of Wisconsin recently announced that it purchased Cherry Tree Dental, a move that has sparked concern and debate in the dental community.
In an email sent to providers, Delta Dental of Wisconsin said Cherry Tree Dental, which has several locations in Wisconsin, Illinois, Michigan and Minnesota, will operate as a separate company and the two organizations will have separate leadership structures.
The insurer’s primary motivation for the acquisition was to ensure dental care access in rural parts of the state, but some dentists are questioning how effective that will be and whether the acquisition presents a conflict of interest.
The American Dental Association said it is looking into the potential legal and regulatory implications of the deal, while the Wisconsin Dental Association recently asked the state Department of Justice to monitor the insurer’s acquisitions in the state.
