Running a dental practice is about much more than providing excellent patient care. Even the most clinically skilled dentist can run into serious financial trouble if the business side of the practice isn’t managed effectively. Unfortunately, many dental offices find themselves struggling to stay profitable, and often, it’s not because of a lack of patients or quality care, but because of overlooked financial pitfalls.
If your practice is feeling financial strain, it’s worth examining these five common reasons dental practices struggle financially, and what you can do to avoid them.
Inefficient Scheduling and Low Production Hours
Time is a dental practice’s most valuable resource. Every empty slot or under-booked hour directly impacts revenue. Many practices unintentionally lose money because of poor scheduling practices, such as not filling last-minute cancellations, scheduling too many short, low-production appointments in prime hours, and failing to group procedures efficiently for the dentist’s time.
Even small inefficiencies add up quickly! For example, an average one-hour opening that goes unfilled once a week could mean thousands of dollars in lost production over the course of a year.
Solution
Use a proactive recall and reactivation system. This keeps the hygiene department productive and their schedule full.
Keep a short-call list for patients who can come in on short notice so that you always have prospects to fill open production time.
Train scheduling coordinators to book high-value procedures during peak times. Block scheduling is hugely effective in managing production time and keeping daily production goals met and in balance.
Poor Case Acceptance Rates
You can diagnose all the treatment in the world, but if patients aren’t saying “yes,” your production will stall. Many practices struggle financially because they fail to convert diagnosed treatment into completed treatment.
Common reasons for low case acceptance include presenting treatment in overly technical terms patients don’t understand, failing to show the value and benefits of treatment, failing to follow up on unscheduled treatment, and not offering flexible payment options.
Solution
Use visuals such as intraoral photos or digital scans to help patients “see” the problem.
Focus on the benefits and long-term health outcomes for patients, not just the procedure itself.
Have a follow up system in place for unscheduled treatment (2 days/2 weeks/2 months).
Offer third-party financing or phased treatment plans to make costs more manageable (Care Credit, Sunbit, Cherry, etc…).
When case acceptance improves, production and profitability follow.
High Overhead and Uncontrolled Expenses
It’s not uncommon for dental practices to have overhead that exceeds 65–70% of collections, leaving very little room for profit. High overhead can result from overstaffing or inefficient staff utilization, paying too much for supplies or lab work, unnecessary technology purchases without a clear ROI, and small, unchecked expenses can quietly drain profits over the course of time.
Solution
Review overhead reports monthly and set targets for each expense category.
Negotiate with suppliers or consider joining a buying group.
Evaluate every new purchase to ensure it will generate a measurable return.
A lean, well-managed overhead structure keeps more revenue in the practice’s pocket.
Inadequate Collections and Accounts Receivable Management
Some practices produce plenty of dentistry, but still struggle financially because they’re not collecting what they’ve earned. Letting accounts receivable pile up, or failing to collect patient portions at the time of service, can create a serious cash flow problem.
Signs of weak collections include large balances over 60 or 90 days old, allowing patients to leave without paying their estimated portion, and lack of follow-up on unpaid insurance claims.
Solution
Collect patient co-pays and deductibles at the time of service.
Train front office staff to explain financial policies clearly and consistently.
Follow up on unpaid claims weekly and have a set process for patient balance reminders.
Consistent, proactive collections ensure the money you’ve earned actually makes it into the bank!
Lack of Marketing and New Patient Flow
Even the most well-run dental practice needs a steady flow of new patients to replace those who move away, complete treatment, or fall off the schedule. Many practices struggle financially because they rely only on word-of-mouth without investing in a strategic marketing plan.
Without new patient growth, the practice can become stagnate, especially if existing patients aren’t coming in regularly.
Solution
Develop a marketing plan that includes both online and community outreach.
Optimize your website for local search and maintain an active presence on social media.
Track how new patients are finding you so you can focus on the most effective channels.
A healthy mix of new patients and loyal returning patients keeps production, and profits strong.
Bringing It All Together
A financially healthy dental practice doesn’t happen by accident. It requires intentional planning, consistent systems, and a willingness to make adjustments when something isn’t working. By addressing these problem areas…scheduling, case acceptance, overhead, collections, and marketing…practices can significantly improve their financial stability!
The key is to treat your practice like both a healthcare facility and a business. Dentistry is about helping people, but you can’t do that effectively if your practice is constantly under financial stress. A profitable, well-managed practice not only benefits the dentist and team, but also allows for better technology, expanded services, and improved patient care.
If you would like more information or guidance in this area, please contact us at Bryant Consultants! We would be glad to help!
Sherri Merritt
Dental Consultant & Trainer
