COVID has put a stopper to the dental industry’s steady growth leading up to 2020, however, long-term drivers of growth will help stabilize and lead to the continued expansion of the industry. The dental industry was experiencing steady growth for the following reasons:
- Rising levels of consumer disposable income – More patients expected to afford cosmetic procedures and out-of-pocket dental care expenditures, as well as routine care services.
- Rising levels of dental insurance coverage – Especially through the continued expansion of Medicaid, cost remains one of the most significant barriers to receiving care.
- Favorable demographic trends – Growth in the geriatric population which has high susceptibility for oral problems like tooth decay and gum disorders.
- Technological advancement – Rising awareness regarding the importance of oral hygiene.
In March, due to concerns about the Covid-19 pandemic, the CDC recommended delaying elective dental procedures. States soon followed, mandating closings except for emergency care.
The dental industry, along with much of the rest of the economy came to a halt. By June, with the help of PPP loans, relief from fixed cost centers, and pent-up demand for dental care, dental practices largely weathered the storm and are reopening quickly. Marko Vujicic, chief economist with the American Dental Association’s Health Policy Institute estimates that only 1% of dentists will ultimately sell their practices, retire or file for bankruptcy due to the crisis.
When more people have been vaccinated the dental industry will begin to grow. There will even be a backlog of patients waiting to be seen for cleanings and other dental services. This is the perfect time to consider buying a dental business. Contact us to find out how we can help you buy or sell a business.