Welcome to Backoffice Weekly by Faliam

How's everyone's week been? I don't know about you guys, but works piling up. Today is another day to add work to that pile! Let's get you up to speed in 30 secs!

July 10, 2025

💡 What This Week’s About

This week's dental industry developments reveal how AI is driving measurable revenue gains with systems identifying dozens of daily production opportunities, while insurance companies acquiring practices threaten provider autonomy and the M&A market continues its momentum with practices selling above asking price amid growing emphasis on revenue cycle optimization.

⚡️ Quick Weekly Highlights

  • 🦷 62% of dentists cite staffing shortages as their biggest challenge in 2025, driving up labor costs.

  • 💸 15% of dental insurance claims are denied on average, a rate significantly higher than in 2022.

  • ⬆️ 10% potential increase in collections and 30% boost in profits for practices using AI tools for RCM

Technology

AI Delivers Tangible Revenue & Efficiency Gains 🤖

Bottom Line: 

Artificial intelligence is moving beyond hype to provide concrete benefits for dental practices. New AI-driven systems, like DentScribe GPS, leverage clinical notes to identify an average of 51 high-value production opportunities and 28 urgent care needs daily, directly boosting revenue potential and patient outcomes. AI also significantly enhances diagnostics, with reported accuracy rates above 90% for detecting common issues like caries and periodontal disease, and automates administrative tasks, reducing burden and improving throughput. While 18% of practices currently use AI, another 66% are considering adoption, pointing towards a growing competitive edge for early adopters.

Finance

Insurers Become Providers: A Looming Threat to Practice Autonomy & Finances 🏦

Bottom Line: 

A significant trend emerging this week is dental insurance companies acquiring dental practices, exemplified by Delta Dental of Wisconsin's purchase of Cherry Tree Dental. The American Dental Association (ADA) and state associations voice strong concerns about potential conflicts of interest, fearing insurers will prioritize cost savings over comprehensive patient care and limit treatment options to those most profit/able for the payer. This trend, coupled with warnings from organizations like CareQuest Institute about potential Medicaid cuts reducing access and lowering reimbursement rates, presents a dual challenge to the financial stability and clinical independence of non-insurer-owned practices.

Market

M&A Momentum Meets RCM Optimization 💰

Bottom Line: 

The dental M&A market shows continued strength, particularly for independent buyers and smaller groups, who drove over 80% of transactions in 2024. Practices are selling for an impressive average of 108% of their asking price, underscoring the importance of strategic positioning and accurate valuation, which is often based on a percentage of revenue or a multiple of EBITDA. Enhancing operational efficiency, especially in revenue cycle management (RCM), is crucial for maximizing practice value. New integrations, such as Vyne with Open Dental software, promise streamlined workflows, faster claims processing, and improved access to financial data, directly contributing to a healthier bottom line and a more attractive practice for potential buyers.

BLOGS

Level Up Your Practice Finances: Why Your Dental Group Needs a Solid Accounts Payable Policy

A solid accounts payable policy helps dental practices prevent financial errors, reduce fraud, and maintain better cash flow control.

AI Accounting Software: Your Dental Practice's New Best Friend?

AI accounting software automates dental practice finances, reducing administrative work and allowing staff to focus more on patient care.

See you on next week’s newsletter!

Best,
Salar & Faliam team