Many dentists are expecting to be faced with several challenges next year as the industry deals with increased consolidation, inflation and low reimbursement rates.
Three dentists recently shared with Becker's their predictions for the dental industry in 2025.
Editor's note: This response was lightly edited for length and clarity.
Question: What predictions do you have for dentistry in 2025?
Corey Anderson, DDS. Affordable Dentures & Implants (Bridgeport, W.V.): I expect increased focus on value for services. This includes perceived value as well as financial value. Dental insurance continues to fail to allow enrollees to experience the dental solutions wanted and needed. The resulting shift to out-of-pocket drains for dental solutions will present increased focus on value for patients.
Michael Davis, DDS. Smiles of Santa Fe (N.M.): The Federal Reserve recently announced a prediction of fewer interest rate cuts for 2025. I don’t believe that assertion after the recent strong effort to kill the latest omnibus pork spending bill in Congress.
Government spending is a major cause of inflation, as well as subsequent efforts by the central bank to keep interest rates elevated to counter inflation. A Congress committed to spending controls is a powerful plus for the economy. Thus, I anticipate further (not fewer) fed rate cuts for 2025.
That said, I anticipate the larger DSOs to gobble up smaller operations. They will have the financing to do so derived from subprime markets. Smaller and mid-sized DSOs will need to generate financing primarily from clinical production.
Some DSOs will prosper while others will be acquired in mergers. I also expect one of the top 10 DSOs to default on financing payments. That could work out several ways.
Michael Perpich, DDS. Northland Smiles (Deerwood and Little Falls, Minn.): I see a lot of uncertainty in dentistry in 2025. Problems with staff shortages and reimbursements will continue in 2025. The uncertainty will come from what [impact] the new administration and their appointments will have on vaccinations and fluoridation. Everyone likes certainty, but we have to deal with uncertainty in 2025.