Interested in the latest dental trends?
The Q2 2025 report from the ADA Health Policy Institute offers information on how dentist’s are perceiving consumer sentiment and spending, operational challenges, and the job market.
Here’s a breakdown of what the data shows and what it means for your dental office.
1. Economic Confidence Is Declining
Dentists are reporting a sharp drop in confidence regarding both the broader economy and the dental sector specifically for the second straight quarter.
Many providers cite concerns about inflation, government policy, tariffs, and geopolitical instability as key reasons for their outlook.
The same concerns are mentioned from dentists who remain confident.
This could reveal how subjective interpretation plays a role in how dentists view the dental economy.
2. Practices Are Following Through on Investment Plans
Despite the downturn in sentiment, dental offices have largely stuck to their plans for 2025. Practices had planned to:
- Hire additional staff,
- Invest in new software,
- Purchase equipment, or
- Reconsider insurance network participation
Offices have mostly followed through, according to mid-year data.
While it remains to be seen if this trend continues through the end of the year, current behavior suggests stability in decision-making despite broader concerns.
3. Consumer Dental Spending Is Rising, But Modestly
Spending on dental care by U.S. households has increased by 3% since the beginning of the year and 8% since before the pandemic.
However, this growth is slower than in other areas of healthcare, and it's not resulting in any noticeable uptick in patient volume or wait times at dental offices.
What does this mean?
Although consumers are spending more, the increase is being absorbed without significantly affecting appointment demand or capacity constraints.
4. Cost Pressures Are Building, But Reimbursements Aren't Keeping Pace
Dental practices are facing increasing expenses in 2025:
- Dental equipment and supply costs are up by 5% in the first half of the year.
- Wages and other operating costs are also climbing.
Unfortunately, reimbursement rates are not rising at the same rate.
In fact, they are trailing inflation.
This gap is leading to what many are calling a “fiscal squeeze”, and around one in four dentists have responded by dropping some insurance plans.
5. Job Growth Is Flat, While Hiring Remains a Challenge
Unlike the broader U.S. economy, which continues to add jobs, the dental sector has seen stagnant employment numbers throughout 2025.
Offices report difficulty in hiring, especially for dental hygienists, where over 91% of practices say recruiting is “very” or “extremely” difficult.
There is also a curious trend emerging: a slight decrease in average weekly hours worked by dental staff.
This could indicate shifting employee expectations, workload changes, or other structural shifts within practices.
Summary: A Holding Pattern
To sum it up:
- Confidence is down among dentists.
- Spending is up (but modestly).
- Costs are rising faster than revenue.
- Hiring is hard, and job growth is stalled.
While the dental economy isn't in crisis, the data suggests a period of cautious stability, with practices feeling squeezed between rising costs and flat reimbursements.
Keeping a close eye on expenses, streamlining operations, and staying flexible with staffing strategies may help offices navigate the rest of the year successfully.
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