Dental Practices

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 122,700 dental practices in the US are in the business of providing “oral health,” including hygiene or preventative care, restorative treatments, and oral surgery. 78% of dentists are in general dentistry, while orthodontists represent 5% and oral surgeons and pediatric dentists each represent 4%. The rest are specialty practices, such endodontists or periodontists. About half of dentists are in solo practices.

Weak Economy Lowers Demand

Demand for dental services had been thought to be “recession-proof,” but the past recession and recent pandemic saw a drop in dental appointments and billings.

New Treatment Technologies

Technological advances continue to increase quality, enhance patient comfort, and speed the delivery of dental treatments.

Industry size & Structure

The average dental practice employs about 8-9 workers and generates about $1 million in annual revenue.

    • There are about 122,700 dental practices in the US that employ 1,027,000 workers and generate annual revenue of $158 billion.
    • Dentists must be licensed by their State to practice. This requires a bachelor's degree, 4 years of dental school, and passing written and practical exams. Specialty licenses typically require another 2-4 years of postgraduate education and up to 2 years of a residency program. These licensing requirements create a significant barrier to entry for the industry.
    • 78% of dentists are in general dentistry. Orthodontists represent 5% and oral surgeons and pediatric dentists each represent 4%, with the rest in other specialties (endodontists, periodontists, etc.).
    • The average practice has 1-2 dentists and about 2 dental hygienists and 3 dental assistants for each dentist.
                                Industry Forecast
                                Dental Practices Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Dec 17, 2024 - Spending On Dental Procedures Often Exceeds Spending On Other Major Health Conditions
                                • Dental diseases and procedures are highly prevalent, costly, and often exceed spending on other major health conditions such as diabetes and hypertension, according to Paulo Nadanovsky, DDS, Ph.D., Ana Paula Pires dos Santos, DDS, PhD., and David Nunan, PhD. They suggest that dental care in the US is driven more by economic pressures and patient trust than clinical evidence, leading to excessive diagnoses and interventions. Examples cited include the treatment of noncavitated caries lesions (white spots) and routine fillings in children, practices that lack substantial evidence of benefit in preventing pain or infection. Yehuda Zadik, DMD, MHA, acknowledges the issues raised by Nadanovsky and raises concerns about the lack of external oversight of dentistry.
                                • Three-quarters of all dentists in the US work in a dental practice that only has one location, according to the American Dental Association. About 40% of dentists work in a practice that is one location with multiple dentists and 35% of dentists work in a single location, solo dentist. Working in a practice that is between 50 and 99 locations is the least common practice size, with 2% of dentists.
                                • Approximately one-third of dental assistants (33.7%) and dental hygienists (31.4%) expect to retire in five years or less, according to a 2024 report from the Association of Dental Support Organizations. Vacant positions in dental assisting and dental hygiene are already reducing dental practice capacity by an estimated 10% nationally. “Enrollment in dental assisting programs has been trending downward since 2015, and the pandemic had a negative impact on dental hygiene program enrollment,” according to the report. “While there has been some recovery of enrollment in dental hygiene programs, data suggest that dental assisting program enrollment will not rebound in the near future. As a result, workforce shortages are likely to remain an issue for years to come.”
                                • Dental practice employment and average wages for nonsupervisory employees increased slightly during the first 10 months of 2024, according to the US Bureau of Labor Statistics (BLS). Dental Practices slightly raised their prices during the first 10 months of 2024, according to the BLS. Dental practice sales are projected to grow at a compound annual growth rate of 4.4% from 2021 to 2031, faster than the growth of the overall economy, according to the Centers for Medicare and Medicaid Services.
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