(856) 234-3536
PO Box 98
Mount Laurel, NJ 08054

Category Archives: Strategies

  HomeAmerican Practice Consultants  |  Strategies

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

Posted on 0 Comments

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

Posted on 0 Comments

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.

How Staffing Challenges Are Creating Opportunities for Dental Practice Buyers

Posted on 0 Comments

Over the past several years, staffing has become one of the most talked-about challenges in dentistry. Many practice owners report that hiring and retaining team members—especially hygienists—has become significantly more difficult.

While this trend creates challenges for some practice owners, it can also create opportunities for dentists who are looking to buy a practice.

Understanding how staffing issues affect practice performance can help buyers identify opportunities that others may overlook.

—

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

Across the country, dental practices continue to struggle with hiring.

Recent industry data shows that nearly one-third of dentists have been actively recruiting staff in the past several months, including dental hygienists and assistants.

Of those practices recruiting, the vast majority report that hygienists remain extremely difficult to hire, with many dentists describing the process as very or extremely challenging.

These staffing shortages can impact:

– Patient scheduling
– Hygiene production
– Overall practice capacity

In some cases, practices are simply unable to see as many patients as they otherwise could.

—

### Staffing Issues Can Affect Practice Growth

When a practice is short a hygienist or assistant, it can limit the practice’s ability to grow.

For example:

– Hygiene schedules may not be fully booked
– Doctors may spend time performing procedures that a hygienist could handle
– Appointment availability may be reduced

These operational limitations can make a practice appear less productive than it actually could be under the right circumstances.

For a buyer, however, this often represents an opportunity rather than a problem.

—

### The Value of a Strong Team

One of the most important factors buyers should evaluate when considering a practice purchase is the strength of the existing team.

Practices with experienced, long-term staff members often offer significant advantages, including:

– Smooth patient experiences
– Strong patient relationships
– Operational stability
– Easier transitions for new owners

These practices tend to be highly attractive to buyers because they provide continuity and support during the ownership transition.

—

### When Staffing Issues May Present Opportunity

Not every practice will have a perfectly staffed team. In fact, some practices that come to market may currently be dealing with staffing shortages.

In certain situations, this can actually represent an opportunity for buyers.

If a practice has a strong patient base but has reduced production due to staffing limitations, a new owner who successfully recruits or restructures the team may be able to quickly increase production.

For example, adding an additional hygienist or improving scheduling efficiency could expand patient access and increase revenue.

The key is understanding whether the issue is temporary and fixable, or whether it reflects deeper operational challenges.

—

### Evaluating the Team During the Buying Process

When evaluating a potential practice purchase, buyers should carefully review the team structure and staffing situation.

Some questions to consider include:

– How long have the current team members been with the practice?
– Are there any open positions currently being recruited?
– What are the hygiene schedules and capacity levels?
– What systems are in place for hiring and onboarding new staff?

A thoughtful evaluation of the team can provide valuable insight into the stability and future potential of the practice.

—

### Final Thoughts

Staffing challenges are likely to remain part of the dental landscape for the foreseeable future. However, these challenges do not necessarily reduce the value of practice ownership.

In fact, buyers who understand how to build and support a strong dental team may find that they are uniquely positioned to take advantage of opportunities in today’s market.

A practice with the right foundation—patients, systems, and location—can often thrive under new leadership with the right team in place.

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

Posted on 0 Comments

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.

Why 2026 Could Be a Smart Time to Buy a Dental Practice

Posted on 0 Comments

For many dentists considering ownership, the question isn’t just “Am I ready to buy?” — it’s also “Is this the right time to buy?”

Based on the latest data on the dental economy, the answer for many dentists may actually be yes.

Recent industry data suggests that while dental practices remain stable overall, many practice owners are facing increased operational pressures. For dentists who are prepared and strategic, those pressures may translate into excellent opportunities to acquire and grow a practice.

Let’s take a closer look at why.

—

### Many Practices Are Not Operating at Full Capacity

One of the more interesting findings in recent industry research is that a significant number of dental practices report they are not as busy as they could be.

In fact, roughly one-third of dentists report that their practice could treat more patients than they currently are seeing.

This doesn’t necessarily mean the practices are struggling. In many cases, it reflects:

– Owners approaching retirement who are gradually slowing down
– Practices that rely heavily on referrals rather than active marketing
– Offices that have not adopted newer growth strategies

For a motivated buyer, this often represents immediate growth potential.

A new owner may be able to increase production simply by:

– Expanding services
– Improving scheduling efficiency
– Adding hygiene capacity
– Implementing marketing or patient outreach strategies

In other words, the practice may already have the infrastructure and patient base—it just needs a new owner with the energy and vision to take it further.

—

### Operational Pressures Are Encouraging Some Dentists to Transition

Another trend affecting the market is the increasing financial pressure on dental practices.

Across the profession, costs have been rising for:

– Dental equipment and supplies
– Staff wages
– Technology investments

At the same time, insurance reimbursement rates have not kept pace with inflation.

For some practice owners—especially those nearing retirement—this creates a situation where they decide it may be the right time to transition the practice rather than continue navigating these operational challenges.

For buyers, this can lead to more practices coming to market and greater choice in potential opportunities.

—

### Buyers Who Understand the Economics Can Unlock Value

Ownership has always required more than clinical skill. Successful practice owners understand the business side of dentistry.

Buyers who take the time to analyze a practice carefully can often identify opportunities to strengthen the business, such as:

– Expanding procedures that are currently referred out
– Adjusting insurance participation
– Improving patient retention and recall systems
– Optimizing staffing and scheduling

In many cases, these improvements can be implemented without significant capital investment, allowing the buyer to increase production and profitability relatively quickly.

—

### The Market Still Favors Well-Prepared Buyers

Despite the challenges facing some practices, the dental profession remains fundamentally strong. Consumer spending on dental services continues to grow modestly, and patient demand for care remains steady.

For dentists who are prepared financially and professionally, the current environment may offer:

– More practice options to evaluate
– Opportunities to purchase practices with untapped potential
– The ability to step into ownership with a solid foundation already in place

The key is approaching the process thoughtfully—with the right advisors and a clear understanding of what makes a practice successful.

—

### Final Thoughts

Every dental practice transition is unique, but broader industry trends can help buyers understand where opportunities may exist.

While some practice owners are feeling pressure from rising costs and changing insurance dynamics, buyers who are ready to step into ownership may find that this environment presents a compelling window to acquire and grow a practice.

If you’re considering purchasing a dental practice and would like guidance evaluating opportunities, working with a transition advisor can help you navigate the process with confidence and identify practices that align with your goals.

Ownership is one of the most significant milestones in a dentist’s career—and with the right preparation, it can also be one of the most rewarding.

1 2 3 … 11