Rising costs have become one of the biggest challenges facing dental practices over the last couple of years, leading to the refocusing of investments, practice closures and tightening budgets.
Here are five notes on how rising costs are affecting the dental industry in 2026:
1. The ADA reported in April that hourly earnings for dental staff increased by 2% during the 12 month period ending in February. The demand for high wages and benefits was among the many challenges dentists have described facing for recruiting hygienists and dental assistants as well. Debra Bafia, office manager at Ethos Dental Group in Munster, Ind., told Becker’s she expects rising staff wages to be a dominating trend this year, due to rising education costs and the high cost of living.
“From an employer’s perspective, applicants are requesting higher wages to account for the increasing cost of living (as well as being able to pay back their student loans), which makes being competitive in this market that much more difficult,” she said. “I am optimistic that the right candidates will still find a way to their “dental home,” but I think the industry is going to have its fair share of struggles for quite some time.”
2. Prices for dental equipment and supplies increased 6% during the 12 month period ending in February, compared to a 2% inflation rate, according to data from the ADA. Stan Kinder, founder of Everything DSO, recently told Becker’s that increased costs combined with flat reimbursements is creating additional barriers for dentists, and that these price hikes could also begin to affect patients.
“There is no question that inflation is putting pressure on profitability,” he said. “This is particularly challenging given that insurance reimbursements have remained flat or some instances even declining. I think there is also a growing concern that we may be approaching the point where it might begin to impact the dental consumer. The net effect short term is that many, if not most, dentists are working harder to earn less.”
3. Several dental practices and clinics have closed since the beginning of 2026 over financial headwinds. The University of Minnesota Boynton Health Dental Clinic in Minneapolis closed in March after running on a budget deficit for several years. Eugene-based Lane Community College officials have also proposed closing one of their dental clinics to help balance its budget. The closure of the Willamette Restorative Dental Clinic is estimated to save the college $320,000.
4. Rising healthcare costs has led some states to weigh cuts to Medicaid dental services. Massachusetts Gov. Maura Healey proposed implementing a $1,000 annual cap on Medicaid dental coverage earlier this year as part of the state’s budget for fiscal year 2027. The state’s MassHealth program reportedly spent about $270 million on adult dental services in 2025, but a cap could save the state up to $120 million. Earlier this month, lawmakers sent the governor a new budget with a $1,750 cap on dental services.
5. DSOs are rethinking their acquisitions and seeing shifting patient behavior amid rising costs in various states. Smile Makers Dental Center CEO Geith Kallas, DDS, told Becker’s his organization has had to pass on certain acquisitions due to high interest rates, while his offices have seen patients prioritize only necessary procedures due to the rising cost of living.
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