Dentists’ Confidence Dips Amid Rising Costs and Modest Growth

The American Dental Association Health Policy Institute (ADA HPI) has released its Q2 2025 State of the Dental Economy report, offering a detailed look at the financial health of United States dental practices. The findings highlight a downturn in dentists’ economic outlook, even as patient spending on dental care remains steady.

Confidence among dentists in the broader US economy fell significantly from the beginning of the year. Confidence in both the dental care sector and individual practices also declined. The top reasons fueling skepticism include rising costs, inflation, tariffs, geopolitical uncertainty, and dissatisfaction with current federal policies. Those maintaining optimism cite the resilience of the US economy, strong patient demand, and favorable economic indicators.

Consumer spending on dental care continues to grow, though at a slower pace than overall healthcare spending. In May 2025, dental spending was up 0.4% from the prior month and 3% year-to-date, but overall healthcare expenditures have far outpaced dentistry since the pandemic. Despite modest spending increases, dentists report no significant change in busyness levels. Roughly 27% say they are not busy enough, while 13% feel overextended.

Practice expenses remain a key challenge. Prices for dental equipment and supplies rose 5% in the first 5 months of 2025, with wage growth for staff also outpacing inflation in recent years. Reimbursement rates have edged up slightly but continue to lag behind the rising costs of running a practice.

Staffing shortages persist, particularly for dental hygienists, making recruitment difficult for many practices. Together, these pressures leave many oral health professionals uncertain about the future trajectory of the industry. Click here to read more.