Dentists are facing compounding factors fueling financial troubles for their practices this year.
Five notes:
1. Although several states have increased reimbursement rates for dental services, they are still not enough to keep up with the pace of inflation, according to data from the American Dental Association. The organization reported that reimbursement rates increased slightly in February. However, long-term trends show that rates are not keeping pace with overall inflation or the rise in practice expenses. Reimbursement rates in most states fall below 50% of dentist charges and 60% of private insurance reimbursement, according to 2025 data from the ADA.
2. Consumer dental spending continues to lag behind overall healthcare spending despite recent gains. Consumer dental spending rose 0.4% between December and January. It was also 4% higher compared to 12 months prior and 11% higher than pre-pandemic levels. Dental spending has increased by 24% over the last 10 years, compared to 48% for physician services and 39% for overall healthcare spending, according to an ADA report.
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. Buffalo, N.Y.-based Kaleida Health also announced the closure of Gundlah Dental Clinic in Olean, N.Y., over financial headwinds and workforce limitations. The clinic faced ongoing financial performance challenges, workforce limitations and reimbursement pressures, incurring losses exceeding $800,000 over the last five years. To see two other practice closures, click here.
4. Rising staffing costs continue to burden practice owners. Nearly 70% of dentists described recruitment of dental assistants as “very” or “extremely challenging.” Additionally, more than 90% of dentists who have actively been recruiting dental hygienists over the past three months said that it has been “very” or “extremely” challenging. The demand for high wages and benefits was among the many challenges dentists have described facing for both positions. The ADA reported that hourly earnings for dental staff increased by 2% during the 12 month period ending in February.
5. The cost of dental supplies has increased by 6% over the last year, according to data from the ADA. Prices for dental equipment and supplies increased by 6% during the 12 month period ending in February, compared to a 2% inflation rate.
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