Decline in Dentists’ Wages: A Growing Concern

I previously touched on the current and future dental trends and now, halfway through 2024, we are seeing that the dental industry continues to face a significant issue: the projected decline in dentists’ wages over the next decade. This trend raises concerns about the financial stability of dental professionals. Read on for thoughts on why this is happening.

Economic Factors Driving Wage Decline- There are a few factors contributing to the downward trend. First, insurance companies are decreasing reimbursement rates. Second, operational costs continue to rise, and increased costs for supplies, technology, and staff salaries reduce profit margins. Third, we are seeing an increase in competition. More dental school graduates and the rise of Dental Service Organizations (DSOs) are intensifying competition, putting downward pressure on fees at many practices.

Wage Projections and Implications- Studies predict that dentists’ hourly wages will drop by nearly $14 by 2033, from an adjusted rate of $87.66 in 2023 to $73.94. This decline is steeper than that for other high-earning professions like lawyers and medical doctors.

Supply and Demand Discrepancy- The number of new dental graduates, nearly 7,000 in 2022, exceeds the projected 5,100 new dentist positions available annually over the next decade. This oversupply contributes to a decline in wages.

The projected decline in dentists’ wages necessitates proactive measures. By understanding and adapting to these economic factors, dental professionals can ensure financial stability and high-quality patient care.