Scaling success: Practical solutions to reduce operational strain
Soaring operational costs. A tight talent market. Margin compression. Today’s dental leaders face mounting pressures. Between supply chain inefficiencies, staffing shortages, and stagnant reimbursement rates, it can be easy for practice leaders to become consumed by day-to-day struggles. But in doing so, they risk losing sight of the broader systemic issues that could threaten their business’s long-term viability.
To stay competitive, practice leaders must balance immediate problem-solving with strategies that promote ongoing growth. Streamlining processes, optimizing hiring and retention practices, and taking a proactive approach to managing payer relationships can help dental leaders weather current challenges while building a strong foundation for future success.
Eliminating procurement pain points
Supply costs have surged over the past year. A recent survey found that 45% of dentists consider rising overheads to be one of the top challenges they are navigating.1 Practice leaders may not be able to do much to limit prices, but working with a select group of vendors to improve operational efficiency can go a long way toward keeping costs under control.
For example, at Oakpoint, we streamlined our procurement process by narrowing our partnerships down to a select number of preferred vendors. This allowed our organization to leverage purchasing volume for better pricing and more consistent service. This approach enhances scalability and helps reduce costs on nonclinical supplies while making sure dentists retain autonomy over clinical purchasing decisions.
When choosing vendors, practice leaders should focus on traits like reliability, short turnaround times, and consistent quality. A strong vendor relationship goes beyond transactional interactions—it should be collaborative. The best vendors will proactively make recommendations and suggest improvements, such as consolidating frequent shipments or training administrative staff to optimize supply orders.
Competing for talent in a crowded marketplace
While rising supply costs are a concern, they’re not the only factor threatening profit margins. Many practices are finding that salaries for administrative and clinical roles are growing at a faster rate than their revenue. Hiring and retaining skilled dental professionals is tougher than ever, especially for high-demand roles such as dental hygienists. Data from the American Dental Association (ADA) places this issue in stark relief. At the end of 2024, approximately one-third of dentists said they had recruited a dental hygienist over the last three months. Of these, 90% described the process as very or extremely challenging.1
There are several ways that dental organizations can address this issue. Firstly, by benchmarking their base rates against the local market, practice leaders can ensure they are offering a competitive pay package. Some practices are also introducing bonus structures to reward reaching particular performance milestones—for instance, maintaining a full schedule for a month. This approach incentivizes clinical staff to maintain a steady and productive workflow while boosting their earning potential and, by extension, their job satisfaction.
Alongside clinical staff, some practices are reporting difficulties recruiting doctors. This often comes down to an employer’s value proposition. In the majority of cases, dentists entering the workforce are looking for a route toward ownership and will weigh this factor heavily during the recruitment process. Practices struggling to attract talent should focus on communicating a clear pathway to partnership for new doctors, paving the way for a long-term engagement.
Putting practices first in the insurance equation
Ask any practice leader, and they’ll likely agree: insurance companies—specifically, their policies around reimbursement—are one of the biggest barriers to financial stability in the dental industry. Operating costs are going up. Meanwhile, insurance reimbursements have largely remained stagnant. The outcome? Dental practices are having to cut deeper into their profits to keep up.
According to the ADA, around 40% of dentists are thinking about dropping out of insurance agreements in 2025. When asked about their most significant challenges, almost 60% cited low reimbursement and denials.1 There is no simple solution to the problems surrounding reimbursement. However, without intervention, insurance companies are unlikely to make changes. As such, it’s important that dental practices take the lead in attacking the issue.
One effective tactic is to create a position within the organization dedicated to payer negotiations. This person should be responsible for liaising directly with insurance companies to negotiate favorable reimbursement rates. Practices should also perform an annual audit of their in-network agreements. Whether conducted internally or with the help of an external consultant, this review should take stock of which insurers are currently in network and assess if these relationships still serve the practice. In some cases, it can be more beneficial to shift to an out-of-network model.
Applying a long-term lens
From staffing to overheads, dental practice leaders have plenty of immediate pressures to contend with. However, long-term considerations are just as critical. As touched on above, one aspect of this is creating a structured path to partnership for incoming doctors. For dentists planning to sell a share of their practice, it’s essential to have clear parameters in place defining what partnership entails. Questions such as, “What does my equity stake include?” and “What influence will I have over the practice’s operations?” should be addressed up front. The answers to these questions may vary between practices and DSOs, which is why open dialogue about ownership percentages and compensation is so vital.
Beyond this, doctors preparing for retirement should begin planning well in advance. Conversations around the transition should start at least a year beforehand to ensure the practice has the time and resources to recruit and onboard a successor. Building in an overlap period can ease the transition for patients and staff, allowing for continuity of care.
From a marketing perspective, practices should consider how an eventual sale might impact their name and identity. For example, businesses named after a retiring dentist may need to undergo a rebrand to make the shift to new leadership as seamless as possible. Laying this groundwork early can position a location for success well into the future.
Building resilience in an evolving industry
Managing a dental practice requires that leaders balance short-term priorities with long-term goals. Whether it’s consolidating vendor partnerships, crafting a competitive compensation package, or negotiating better insurance reimbursements, practice leaders can’t afford to overlook the practical changes that can reduce overheads and improve efficiency. A proactive approach is key.
At the same time, dental leaders should keep an eye on the bigger picture. Preparing patients, partners, and employees for change requires thorough and thoughtful transition planning. By focusing on strategic action for today and sustainable growth for tomorrow, dental leaders can ensure their practices are equipped to provide high-quality, patient-centered care regardless of the challenges that arise.
Editor's note: This article originally appeared in DE Weekend, the newsletter that will elevate your Sunday mornings with practical and innovative practice management and clinical content from experts across the field. Subscribe here.
Reference
- Economic outlook and emerging issues in dentistry. ADA. https://www.ada.org/resources/research/health-policy-institute/economic-outlook-and-emerging-issues
