Dentists are learning to adapt to the economic challenges facing the industry due to inflation and new tariffs.
Three dental leaders recently spoke with Becker’s to discuss how tariffs and inflation are affecting practices, and how dentists can remain financially stable.
Editor’s note: These responses were lightly edited for length and clarity.
Question: How is inflation and/or tariffs affecting operational costs at your practice?
Stan Kinder. Founder of Everything DSO (Haymarket, Va.): While I am not directly involved in owning or working in a practice, I work closely with many in the profession. While I am less certain about the direct impact of tariffs, there is no question that inflation is putting pressure on profitability. 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.
James Stein, DMD (Boston): From my viewpoint as a prosthodontist in a fee-for-service solo practice, inflation has been a cyclical economic issue throughout my 40-year career. Although tariffs are a recent development, they represent similar problems for dentists by creating higher fixed and variable operating costs. The difference is that tariffs can delay the acquisition of dental materials and equipment made abroad in addition to raising their costs. However, I believe these challenges also present an opportunity for some dentists. In a challenging economic climate, the solo practitioner can focus on building patient relationships by maintaining and improving the quality of care. By doing so, we can also simultaneously increase the respect of our valuable staff (that is so hard to replace) while being more organized with our schedules and more efficient with our delivery of care.
I would also note that, in the midst of these challenges, it is equally important to not seek a cheaper dental laboratory as a cost-cutting alternative. This could actually further increase costs due to remakes and wasted chair time. Ultimately, this will result in the loss of patients and a reduction of profit margins. Instead, I would advise investing in technology your patients can see and benefit from. This will further help you distinguish yourself as someone who is being the best dentist they can be.
Robert Trager, DDS. JFK Airport (New York City): These are turbulent times for many in the dental profession. Inflation and tariffs are rising, but are partially being offset by the decrease in the fed interest rate reductions. As a solo practitioner I can control my operational expenses much easier than a large DSO operation. I urge all to buy equipment and supplies that are made in the U.S. to avoid higher costs from these products subject to tariffs. Buy from supply houses or online [for] products that are cheaper than from the big and well-known vendors.
Don’t fall prey to the gimmicks that these vendors use to entice you to buy more supplies than you need. These vendors want you to get stuck with inventory they want to get rid of by enticing you to buy two and get the third one free. Eventually, if you are not that busy you will get stuck with inventory you can’t use or that will expire before use. Buy only what you need. DSOs may want to use AI to purchase supplies.
Also, use smaller but well reputable laboratories for your prosthetic services in order to avoid inflation. Utilize staff more efficiently to multitask instead of hiring additional staff. You’ll save on social security and insurance expenses. As a solo practitioner, when the staff is busy, I will pick up the slack by answering the phone if it rings, making appointments, collecting payments, taking and developing X-rays, etc. I don’t need extra staff to do these tasks which will cut down on overhead.
We all must learn better business acumen and management in our practices. As a solo practitioner, I would write out payroll on my own for at least seven or more staff. And I pay them each week instead of every two weeks to maintain staff attendance and loyalty. The trick is to pay your associates as an independent contractor to avoid taxes. Other ways to possibly cut costs is to contact senior citizen centers, churches or institutions to see if some people want to be trained as part-time volunteers to do clerical or assisting in some form. My philosophy is we all must learn to use our innate skills over the years and not completely rely on AI to do our jobs.
