‘Fiscal squeeze’ on dental practices continues

The ADA Health Policy Institute reports that dental practices are facing a persistent 'fiscal squeeze' characterized by rising operating costs and a simultaneous decline in patient demand. While consumer spending on dental services has shown modest growth, practice capacity is increasing as appointment wait times drop and dentists report being less busy. This economic shift, coupled with ongoing staffing shortages for roles like dental hygienists, presents a complex challenge for the dental industry's financial stability.

According to the ADA Health Policy Institute’s update for the third quarter of 2025, the dental economy is currently defined by a 'fiscal squeeze' where practice expenses are outpacing broader inflationary trends. Data from the dentist panel indicates that while economic confidence has stabilized, it remains below the peak levels observed in late 2024. To combat these rising costs, approximately two-thirds of surveyed dentists reported increasing their fees since the beginning of the year, reflecting a necessary adjustment to maintain practice viability in a high-cost environment.

On the consumer side, the report highlights a disconnect between household spending and actual clinical demand. Although U.S. households are spending slightly more on dental care, Dr. Marko Vujicic, Ph.D., chief economist and vice president of HPI, notes that this has not translated into busier schedules for practitioners. Instead, dental practices are seeing a continued decline in appointment wait times and an increase in open capacity, suggesting that the volume of care delivered is not keeping pace with the rising costs of providing that care.

Labor remains a significant hurdle for the sector, with practices continuing to struggle with filling open positions. The shortage of dental hygienists is specifically cited as a persistent issue impacting practice operations and efficiency. The HPI plans to continue monitoring these indicators, including government data and quarterly dentist panel results, to help industry stakeholders navigate the evolving landscape of dental practice economics and consumer behavior.