Welcome to Backoffice Weekly by Faliam

Good morning there! Writing to you from Salt Lake City where I was struggling to find good places to eat dessert? Ping me if you have some suggestions. I know there's a lot to do. Let's get you up to speed in 30secs!

July 02, 2025

💡 What This Week’s About

This week, the dental industry saw critical developments impacting financial and operational strategies, particularly around the accelerating pace of consolidation and M&A, the ongoing challenges of workforce shortages and rising costs, and the transformative potential of technology, especially AI, in driving efficiency and revenue. Understanding these intertwined trends is crucial for navigating the evolving landscape.

⚡️ Quick Weekly Highlights

  • 🧾 70% reduction in manual expense approvals achieved by one company using a unified spend platform.

  • 👥 Pennsylvania faces a need for an estimated 2,000 dentists, 7,000 dental hygienists, and 10,000 dental assistants.

  • 🦷 The global dental 3D printing market is projected to reach $10.06 billion by 2030.

Supply

Public Water Fluoridation Battles Impact Prevention Strategy💧

Bottom Line: 

Efforts to remove fluoride from public water supplies in states like Florida and Utah are raising alarms among dental professionals. Studies indicate that discontinuing fluoridation could lead to a significant increase in cavities, particularly among underserved children, resulting in billions in additional dental care costs over time. This trend highlights the importance of proactive preventive strategies within practices and potential advocacy for public health measures to curb future treatment demand and costs.

Market

Market Consolidation Accelerates, Reshaping Competitive Landscape 📈

Bottom Line: 

The dental industry is in the midst of an accelerating consolidation wave, driven by both traditional DSOs and, notably this week, a major dental insurer entering the practice ownership space. This trend, marked by a resurgence in M&A activity and private equity interest, signals a shift in market power and competitive dynamics. While it offers opportunities for practice owners considering a sale, it could also exert pressure on independent practices regarding reimbursement rates and market share. Staying informed about local and regional deal flow is paramount.

Finance

Potential Medicaid Cuts Threaten Access and Practice Finances 💸

Bottom Line: 

Discussions around potential federal Medicaid cuts pose a significant financial threat, particularly to practices serving vulnerable populations. Past instances of reduced Medicaid adult dental benefits have led to increased ER visits for preventable issues and financial strain on providers. These potential cuts could exacerbate oral health disparities and force practices to re-evaluate their payer mix and explore alternative revenue streams to mitigate the impact of reduced reimbursement and potential patient access issues.

Thank you for your time!

Best,
Faliam team