Welcome to Backoffice Weekly by Faliam

Economy

Dental Confidence Drops Low 📉

Bottom Line: 

Economic confidence among U.S. dentists has dropped, the lowest since the pandemic, driven by rising costs and uncertain patient volume. Despite this, many practices achieved same-store growth in 2024, indicating that strategic financial management is key to resilience. Experts recommend proactive tax planning, detailed overhead analysis, and optimizing accounting processes. Additionally, adapting patient acquisition strategies through increased marketing, offering flexible payment plans (like lower down payments), and aligning fee schedules with expected inflation (around 3%) are crucial for maintaining profitability and attracting patients in a competitive market.

Finance

Beyond Fiat: Crypto Payments in Dentistry ₿

Bottom Line: 

Cryptocurrency is slowly but surely making inroads into dental payment options. A notable instance this week saw a patient use Shiba Inu (SHIB) tokens via the Zypto App to pay a $5,000 dental bill. While still nascent, the trend highlights a potential new avenue for patient payments, potentially offering lower transaction fees compared to credit cards. Practices considering this should evaluate the risks of market volatility and regulatory uncertainty, potentially using payment platforms that handle conversion to mitigate exposure. Offering crypto payments could attract a tech-savvy patient base seeking alternative or more private transaction methods.

Industry

Dental Practice Sales Evolve 📈

Bottom Line: 

The market for buying and selling dental practices continues to evolve, influenced by economic factors, interest rates (currently around 5% for financing), and shifting buyer expectations. While DSO consolidation remains a factor, independent buyers represent a significant portion of the market, often offering flexible terms. Buyers in 2025 prioritize practices with strong cash flow, modern technology, and stable teams. Sellers can enhance practice value by modernizing operations and considering creative financing options like seller financing or earn-outs to facilitate deals in a market where cash flow and financing terms are under scrutiny.