Why Growth Is Slowing, and Where Profitability Is Shifting
Key Takeaways
- Dental practices can manage today’s headwinds by focusing on optimization.
- Focus on fundamentals to improve profitability and performance.
- Small percentage improvements can have a significant impact on the bottom-line.
The last six years have reshaped dentistry more dramatically than any period in recent memory. When COVID-19 hit, practices across the country were forced to shut their doors or operate at limited capacity. What followed wasn’t just a temporary disruption. It fundamentally changed patient behavior, staffing models, and the financial realities of running a dental practice.
In the immediate aftermath, dentistry experienced a notable surge. Patients who had delayed care came flooding back. Practices were booked out for months. Production climbed quickly, and for a time, it felt like the industry had not only recovered, but accelerated.
“I refer to this time period as people coming out of healthcare hibernation,” says Scott Clynch, CPA and Partner at CWA. “When people started leaving the house again, they had pockets full of stimulus money and flexible schedules.”
But that surge wasn’t organic growth. It was pent-up demand. Now, as we move deeper into 2026, the dental economy is settling into a new, more challenging normal.
WHY DENTAL GROWTH IS SLOWING
Across the industry, dental practice growth is decelerating. This isn’t a signal that dentistry is in trouble, according to Scott. It’s a sign that the market is correcting after an artificial high, and practices are dealing with significant headwinds.
Patients are more cost-conscious. With inflation and broader economic uncertainty, discretionary healthcare spending is under more scrutiny. Patients are delaying elective procedures, shopping around more, and questioning treatment plans more than they did just a few years ago.
Staffing challenges persist. Labor costs remain elevated, and many practices are still operating with leaner or less experienced teams. This impacts both capacity and efficiency.
Overhead keeps creeping up. Supplies, lab fees, and wages have all increased. Even practices that are producing well may feel margin pressure because expenses are rising just as fast—or faster. To see how your practice stacks up across key success metrics, check the How Does Your Practice Compare? Report.
With slower growth, tighter margins, and less room for operational inefficiency, Scott says it’s time for practices to shift from expansion to optimization.
“It’s not just about how much you produce,” says Scott. “It’s about how efficiently you produce it, how consistently patients accept treatment, and how well your systems support profitability.”
WHERE TO FOCUS NOW
When dental growth slows, fundamentals matter more. The good news is the levers that drive dental practice profitability and performance are well within your control.
Prioritize Patient Visits
Production is the outcome. Visits are the driver. Building a healthy, predictable volume of visits creates the foundation for sustainable production.
- Reactivate overdue patients
- Improve recall systems to reduce no-shows
- Pre-appoint patients at a 90% rate
- Actively contact patients with credit balances
- Refocus marketing efforts to bring in new patients
“A good rule of thumb for GPs is 20 new patients per doctor per month,” says Scott. “That means making sure your local SEO is optimized, you’re active on social media, you’re nurturing Google reviews, and your front office is delivering an excellent patient experience.”
Focus on Overhead and Efficiency
In a slower growth environment, dental practice profitability is won or lost on overhead. Even small percentage improvements can have a significant impact on bottom-line performance.
- Are staffing levels aligned with patient volume?
- Are team members operating at the top of their roles?
- Are you offering a bonus system rather than raises?
- Are supply and lab costs being actively managed?
Scott says this is where outside perspective can help. “Working with a company like Elite Dental Alliance can uncover inefficiencies, renegotiate costs, and identify savings opportunities that are easy to miss internally.”
Track Treatment Acceptance Relentlessly
Case acceptance is no longer a “nice to have” metric. Even modest gains can unlock significant dental practice growth without adding a single new patient.
- Educate the entire staff on how treatment is presented
- Improve financial conversations (see next section for more)
- Make sure you’re aligning customer service with patient expectations
- Consider expanding your treatment offerings via new technology or continuing education
- Reach out to patients who haven’t started treatment plans
Strengthen Your Financing Options
In today’s inflationary economy, affordability is often the barrier between diagnosed treatment and accepted treatment. Having a strong financing partner and process is critical.
- Offer two or more clear, simple payment plans
- Train your team to confidently present financing options
- Make it easier for patients to accept treatment
“If patients can’t comfortably pay, they won’t move forward,” says Scott. “We want to give them every reason to say ‘yes’.”
THE OPPORTUNITY AHEAD
While dental practice growth may be slowing, Scott says this is not a negative moment for dentistry; it’s a clarifying one.
“The question isn’t whether growth will come back,” adds Scott. “It’s whether you have the planning and processes in place to build a practice that can thrive regardless of the environment.”
To take a deeper dive into the current state of dentistry and how your practice compares to your peers, check out this episode of the popular Accumulating Wealth podcast.
For any other professional or personal financial questions or concerns, CWA advisors are always happy to help. Set up your free consultation today.
