Benesch's DSO Market Intelligence Bi-Monthly Report: March - May 2022

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Benesch Friedlander Coplan & Aronoff
Contributor
Benesch Friedlander Coplan & Aronoff
This decline was the first experienced by the dental sector since April 2020.
United States Food, Drugs, Healthcare, Life Sciences
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Key Issues

Dentists continue to shift toward DSO-supported practices amid ongoing labor challenges According to the American Dental Association, DSO-supported practices are now considered one of the fastest growing practice models in dentistry. The ADA Health Policy Institute estimates that solo practices are becoming less and less common, and more dentists are gravitating toward large group practices.

According to HPI's most current data, more than 10% of all dentists were affiliated with a DSO in 2019, a number that is likely much higher today. The percentage of dental school seniors who plan to join a DSO-supported practice also increased from 12% in 2015 to 30% in 2020, according to the 2020 American Dental Education Association Survey of U.S. Dental School Seniors.

The ADA also reported that more dentists are retiring and more dental hygienists are exiting the workforce, further stalling the industry's recovery, according to Health Policy Institute. Dental offices lost 1,500 jobs from February to March, according to the Bureau of Labor Statistics' Current Employment Statistics report. This decline was the first experienced by the dental sector since April 2020. Stagnant employment in the dental industry can be attributed, in a large part, to the exit of dental hygienists from the workforce. According to the latest analysis by the American Dental Hygienists' Association and the ADA Health Policy Institute, hygienist employment has declined since September 2020.

The departure of dental hygienists is largely voluntary, with some hygienists saying they have decided to retire from dental hygiene entirely. Others continue to cite workplace safety concerns and the inability to find sufficient childcare as reasons why they do not return. A study by DentalPost found that feeling underpaid is the most common reason for job dissatisfaction among dental hygienists.

Sources: American Dental Association, Health Policy Institute, DentalPost, ADA News

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Benesch's DSO Market Intelligence Bi-Monthly Report: March - May 2022

United States Food, Drugs, Healthcare, Life Sciences
Contributor
Benesch Friedlander Coplan & Aronoff
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