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Category Archives: Selling

  HomeAmerican Practice Consultants  |  Selling

Dental Spending Is Up — But That Doesn’t Tell the Whole Story

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At first glance, the latest data on dental spending looks like good news.

Consumer spending on dental care has continued to increase—up approximately 4% over the past year and trending upward overall  .

For many, that seems to confirm what we’ve always believed about dentistry:

Demand is strong, and the market is healthy.

But if you stop there, you’re missing a critical part of the story.

Because while spending is up, it’s not growing in the way many assume—and it’s not benefiting every practice equally.

Spending Is Rising… But Slowly

Yes, dental spending is increasing—but the pace matters.

Over the long term:

  • Dental spending has grown about 24% over the past 10 years

  • Meanwhile, overall healthcare spending has grown significantly faster

In other words:

Dentistry is growing—but it’s lagging behind the broader healthcare market  .

That gap is important.

It suggests that while patients are still seeking care, dentistry may not be capturing as much of the growth in healthcare dollars as other sectors.

Growth Isn’t Even Across Practices

Even more important: not every practice is benefiting equally from this growth.

As we touched on last week:

  • Approximately one-third of dentists report they are not busy enough 

That’s a surprising statistic in a market where spending is increasing.

So what’s going on?

Why the Numbers Don’t Match the Reality

There are a few key reasons why rising spending doesn’t automatically translate into stronger performance for every practice.

1. Patient Behavior Is Changing

Patients are still spending on dental care—but how they spend is evolving:

  • Delaying elective procedures

  • Prioritizing urgent or necessary treatment

  • Being more cost-conscious overall

This can lead to:

  • Lower case acceptance

  • Smaller treatment plans

  • Slower production growth

2. Fewer Visits, Higher Costs

In some cases, spending increases are driven more by:

  • Higher fees

  • Inflation-related adjustments

rather than an increase in:

  • Patient volume

  • Visit frequency

That distinction matters.

A practice may see higher revenue per procedure—but not necessarily more patients through the door.

3. Capacity Constraints

Even when demand exists, practices may not be able to fully capitalize on it due to:

  • Staffing shortages

  • Limited hygiene availability

  • Reduced clinical hours

So while the market shows growth, individual practices may feel constrained.

What This Means for Sellers

If you’re preparing to sell, it’s important to understand how buyers will interpret these trends.

Buyers are not just looking at:

  • Top-line revenue

They’re asking:

  • Is this growth sustainable?

  • Is it driven by volume or pricing?

  • Is there room to expand?

Practices that show:

  • Consistent patient flow

  • Strong hygiene programs

  • Opportunities for growth

will stand out in this environment.

What This Means for Buyers

For buyers, this is where opportunity begins to emerge.

A practice that appears:

  • Flat

  • Underutilized

  • Or “average” on paper

may actually have significant upside if:

  • Patient demand exists but isn’t being captured

  • Capacity can be expanded

  • Systems can be improved

The key is knowing how to identify:

The difference between a plateaued practice and an underperforming one.

The Bigger Insight

Here’s the takeaway most people miss:

Rising spending does not automatically mean stronger practices.

The health of the market and the performance of individual practices are not always aligned.

And in 2026, that gap is becoming more important than ever.

Looking Ahead

Next week, we’ll take this one step further and explore one of the most important questions in today’s market:

 > If demand is there, why are so many dentists not busy enough?

If you’re evaluating a practice—whether buying or selling—the key is understanding what’s driving the numbers beneath the surface.

That’s where real value (and real opportunity) lives.

Dentistry Is Still Strong… So Why Are Dentists Feeling Uncertain?

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If you ask most dentists about the state of the profession, you’ll likely hear two very different answers.

On one hand:

“We’re busy. Dentistry is stable. People always need care.”

On the other:

“Costs are rising. Insurance is getting worse. Something feels off.”

Both of those perspectives are true—and understanding that contradiction is key to understanding the dental market in 2026.

Confidence Is Holding Steady

Recent data shows that dentists’ confidence in their own practices and in the dental sector has remained relatively stable over the past year  .

That stability is rooted in some very real strengths:

  • Dentistry continues to be a needs-based service

  • Many practices remain consistently busy

  • The profession has historically weathered economic cycles well

In fact, many dentists cite:

  • Strong patient demand

  • Long-term stability

  • The essential nature of dental care

as reasons they remain optimistic.

So Where Is the Uncertainty Coming From?

Despite that stability, a meaningful percentage of dentists are expressing skepticism about the future of the profession.

The primary concerns fall into a few key areas:

1. Insurance and Reimbursement Pressure

Low reimbursement rates continue to be one of the most commonly cited concerns among dentists  .

For many practices:

  • Fees are flat or increasing very slowly

  • Administrative burdens are increasing

  • Participation in certain plans is becoming less attractive

This creates a growing sense that the traditional insurance model is becoming harder to rely on.

2. Rising Costs and Inflation

At the same time, practice expenses are increasing:

  • Supplies and equipment

  • Staffing costs

  • General overhead

When revenue growth doesn’t keep pace with expenses, even a busy practice can feel financially tight.

This is one of the biggest shifts happening right now—profitability pressure without a clear drop in demand.

3. Broader Economic Uncertainty

Dentists are also paying attention to the bigger picture:

  • Inflation

  • Interest rates

  • Consumer spending behavior

There’s a growing concern that if patients begin cutting back, dentistry—often perceived as partially elective—could be impacted.

4. Staffing Challenges

Even practices with strong demand are facing operational constraints due to staffing:

  • Difficulty hiring hygienists

  • Increased wage expectations

  • Limited availability of qualified candidates

This creates a situation where:

The work is there—but the team to deliver it isn’t always fully in place.

Why This Matters for the Market

This combination—confidence + concern—is shaping how dentists think about the future.

And that directly impacts:

  • When they choose to sell

  • How they value their practice

  • What buyers are willing to pay

What This Means for Sellers

If you’re a seller, this environment creates an interesting dynamic.

On one hand:

  • The profession is still strong

  • Buyers are still active

  • Demand for practices remains healthy

On the other:

  • Buyers are more analytical than ever

  • Profitability and efficiency matter more than raw production

  • Risk factors (staffing, insurance mix) are getting more attention

The takeaway:

A good practice is still very valuable—but buyers are asking more questions.

What This Means for Buyers

For buyers, uncertainty in the market often creates opportunity.

Practices that may have:

  • Flat growth

  • Staffing challenges

  • Inefficiencies

can often be improved with the right strategy.

At the same time, it’s more important than ever to:

  • Understand the financials beyond collections

  • Evaluate staffing realistically

  • Identify where the risk—and upside—actually lies

The Bigger Picture

The dental market isn’t weakening—it’s transitioning.

We’re moving from a period where:

Stability alone drove value

to one where:

Strategy, efficiency, and positioning matter more than ever.

Looking Ahead

In next week’s post, we’ll dig deeper into one of the most misunderstood trends in dentistry right now:

 > Dental spending is increasing—but it’s not telling the full story.

If you’re evaluating whether now is the right time to buy or sell, the key is understanding how these trends apply to your specific situation—not just the headlines.

I’m always available to talk through that with you.

The State of the Dental Economy in 2026: What Buyers and Sellers Need to Know

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The dental economy in 2026 can best be described in one word: stable—but shifting.

At a high level, the data tells a reassuring story. Demand for dental care remains strong, consumer spending is increasing, and dentists continue to express confidence in their practices. But when you look beneath the surface, a more complex picture begins to emerge—one that has important implications for both buyers and sellers of dental practices.

If you’re considering a transition in the next 1–3 years, understanding these trends is critical.

A Stable Market… on the Surface

Recent data shows that dentists’ confidence in their own practices and in the dental sector has remained steady over the past year, even as broader economic uncertainty persists  .

That stability is not surprising. Dentistry has always been a resilient profession:

  • Patients continue to need care regardless of economic cycles

  • Practices benefit from recurring revenue through hygiene and ongoing treatment

  • Many markets still experience strong patient demand

In short, the fundamentals of dentistry remain intact.

But the Underlying Trends Are Changing

While the overall outlook is steady, several important shifts are happening at the practice level.

1. Demand Isn’t Translating the Way It Used To

Consumer dental spending has increased modestly—up about 4% over the past year and continuing a gradual upward trend  .

However, that growth hasn’t translated evenly across practices.

In fact, approximately one-third of dentists report they are not busy enough and could be seeing more patients  .

This creates an unusual dynamic:

  • Demand exists

  • But utilization is inconsistent

For buyers, this often signals opportunity.

For sellers, it highlights the importance of practice positioning and systems.

2. Profitability Is Under Pressure

One of the most important trends shaping the market right now is what many are calling a “fiscal squeeze.”

  • Costs for supplies, equipment, and staffing continue to rise

  • Insurance reimbursement rates are not keeping pace

Over time, this gap puts pressure on margins—even in practices that appear busy on the surface  .

This is a critical shift.

Historically, buyers could rely on stable margins in well-run practices. Today, profitability depends more on management, efficiency, and strategy than ever before.

3. Staffing Remains a Major Constraint

Staffing challenges—particularly for dental hygienists—continue to impact practices nationwide.

Many offices are:

  • Unable to fully staff hygiene schedules

  • Paying higher wages to attract and retain talent

  • Adjusting hours or production capacity as a result

This directly affects both revenue potential and practice value.

What This Means for Sellers

If you’re thinking about selling, this market still offers strong opportunities—but expectations need to be grounded in current realities.

Today’s buyers are looking closely at:

  • Profitability (not just collections)

  • Staffing stability

  • Growth potential within the practice

Practices that are well-organized, properly staffed, and operationally efficient continue to perform very well in the market.

Those with challenges can still sell—but the conversation often shifts toward opportunity and upside, rather than pure historical performance.

What This Means for Buyers

For buyers, this is one of the more interesting markets we’ve seen in years.

While there are challenges, there is also significant upside potential:

  • Underutilized practices

  • Opportunities to expand services or hours

  • Efficiency improvements that can drive profitability

The key is knowing how to identify and evaluate those opportunities correctly.

The Bottom Line

The dental economy in 2026 is not declining—but it is evolving.

  • Demand remains strong

  • Confidence is stable

  • But operational and financial pressures are increasing

For both buyers and sellers, success in this market comes down to understanding what’s really driving performance beneath the surface.

Looking Ahead

In the coming weeks, we’ll break down these trends in more detail, including:

  • Why some practices are busier than others

  • How insurance and reimbursement are reshaping the market

  • What buyers should be looking for—and what sellers should be doing now

If you’re considering buying or selling a dental practice and want to better understand how these trends apply to your situation, I’m always happy to have a conversation.

Thinking About Dropping Insurance Plans? How It Could Affect the Sale of Your Dental Practice

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Over the past several years, dental insurance has become one of the most discussed challenges in the profession. Many dentists feel that reimbursement levels no longer reflect the true cost of providing care, and frustration with insurance administration continues to grow.

As a result, an increasing number of dentists are considering whether to reduce their participation in certain insurance networks or drop them altogether.

While this decision can make sense from a practice management standpoint, it’s important for dentists who may be thinking about selling their practice in the future to understand how insurance participation can influence a transition.

—

### Insurance Remains One of Dentistry’s Biggest Challenges

When dentists are asked about the biggest challenges facing their practices, insurance consistently ranks at the top of the list.

Issues such as low reimbursement rates, delayed payments, and claim denials continue to frustrate practice owners.

These challenges are particularly difficult when they occur alongside rising operating costs, including staff wages, equipment, and supplies.

Because of these pressures, some dentists are exploring ways to regain more control over their practice economics.

—

### More Dentists Are Considering Changes to Insurance Participation

Industry data suggests that a significant number of dentists are evaluating their insurance participation as part of their long-term strategy.

In fact, more than one-third of dentists report that they are considering dropping out of some insurance networks.

For some practices, reducing insurance participation can lead to:

– Higher average collections per procedure
– Less administrative burden
– Greater flexibility in treatment planning

However, these changes can also affect patient behavior and referral patterns.

—

### Buyers Pay Close Attention to Payer Mix

When a practice is evaluated for sale, one of the key factors buyers examine is the payer mix—the balance between insurance-based patients and fee-for-service patients.

Buyers often look closely at:

– The percentage of patients covered by PPO plans
– Average reimbursement levels
– The practice’s historical relationship with insurance networks
– How dependent the practice is on any one payer

A practice that recently dropped several insurance plans may require buyers to carefully evaluate how those changes have affected patient retention and new patient flow.

—

### Sudden Changes Can Create Uncertainty

Transition planning works best when the practice environment is stable.

If a practice drops multiple insurance plans shortly before going to market, buyers may have questions such as:

– Will patients remain with the practice after the change?
– Has production been affected?
– Are collections stable?

These questions don’t necessarily prevent a successful sale, but they may create additional uncertainty during the buyer’s evaluation process.

—

### Strategic Planning Matters

This doesn’t mean that dentists should never make changes to their insurance participation.

In many situations, adjusting insurance relationships can improve practice profitability and long-term sustainability.

However, if you are considering selling your practice within the next few years, it’s wise to think about how those changes fit into your broader transition strategy.

Careful planning can help ensure that decisions made today support the long-term value of the practice.

—

### Final Thoughts

Insurance participation is one of the most important strategic decisions dental practice owners face today. As the profession continues to evolve, many dentists are reevaluating their relationships with insurance companies.

For practice owners considering a future sale, the key is to approach these decisions thoughtfully and with a clear understanding of how they may affect buyer interest and practice valuation.

With proper planning, it is possible to balance operational improvements today with a successful transition tomorrow.

The Financial “Squeeze” Facing Dental Practices – And What It Means If You’re Thinking About Selling

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Many dentists today feel like they are working just as hard as they always have, but the financial rewards don’t always seem to keep pace. If that resonates with you, you’re not alone.

Recent data on the dental economy highlights what many practice owners have already experienced firsthand: the financial pressure on dental practices continues to grow. Rising overhead costs, staffing challenges, and stagnant insurance reimbursements are creating what economists have described as a “fiscal squeeze” on dental practices.

For dentists thinking about selling their practice in the next few years, understanding these trends can help inform when and how to plan a transition.

—

### Rising Costs Are Affecting Practice Profitability

Running a dental practice has always required balancing patient care with business management. In recent years, however, the cost side of the equation has been rising quickly.

Industry data shows that prices for dental equipment and supplies increased significantly during 2025, continuing a longer-term trend of rising practice expenses.

At the same time, labor costs remain elevated as practices compete for qualified team members.

For many practices, the result is that overhead expenses are rising faster than they have historically.

—

### Insurance Reimbursement Isn’t Keeping Pace

While expenses are increasing, insurance reimbursements have remained relatively flat.

Over the long term, reimbursement rates have not kept pace with overall inflation or with the rising costs of operating a dental practice.

This creates a difficult situation for many practice owners:

– Costs continue to rise
– Reimbursement levels remain constrained
– Profit margins become tighter

This doesn’t mean practices are struggling, but it does mean that practice owners must work harder to maintain the same level of profitability.

—

### These Trends Are Influencing Transition Decisions

For dentists nearing retirement—or those thinking about transitioning in the next five to ten years—these financial pressures often play a role in the decision-making process.

Some owners choose to:

– Reduce their participation in certain insurance plans
– Invest in new technology to improve efficiency
– Expand services within the practice

Others begin to think more seriously about transition planning and selling their practice while the practice is still performing well.

Importantly, the best time to sell a practice is typically before financial pressures begin to erode profitability.

—

### Strong Practices Continue to Command Strong Buyer Interest

Despite the financial pressures affecting the profession, well-run dental practices remain highly attractive to buyers.

Practices that demonstrate:

– Consistent production and collections
– A loyal patient base
– A stable and experienced team
– Opportunities for future growth

continue to generate strong interest from dentists looking to become practice owners.

For sellers, this means that the fundamentals of the practice still matter far more than short-term economic headlines.

—

### Planning Early Makes a Difference

One of the biggest mistakes dentists make is waiting too long to begin thinking about their transition.

Ideally, practice owners should begin planning a potential sale three to five years in advance.

This allows time to:

– Improve financial performance
– Address operational inefficiencies
– Strengthen the team and systems
– Position the practice for maximum value

A proactive approach can make a significant difference in both the sale price and the ease of the transition.

—

### Final Thoughts

The dental profession continues to evolve, and economic pressures are affecting practices across the country. Rising costs and insurance challenges are real factors in today’s practice environment.

For dentists considering selling their practice in the coming years, the key is planning ahead and understanding how broader industry trends may affect your practice’s value.

A well-prepared transition plan allows you to move forward on your own terms—and ensures that the years you’ve spent building your practice translate into a successful and rewarding next chapter.

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