Keeping Your Dental Practice Steady When Costs Increase

Dr Dan Shaffer
Apr 30, 2025
4 min read

Updated: Nov 24, 2025

Rising operating costs have become a central challenge for dental practices

across the UK. Wage increases, changes to national insurance, higher material prices and growing regulatory demands have all contributed to tighter margins. Many practice owners who previously operated at comfortable profit levels have seen those margins narrow, making long-term planning more difficult.

This extended guide outlines practical steps that dental practices can take to maintain financial stability, protect business value and manage growth safely.

Strengthen cash flow visibility

A clear picture of cash flow remains one of the most effective ways to manage pressure. Dental practices often face uneven income patterns. Insurer payments, plan-provider remittances and patient finance can arrive in batches, while staff salaries, supplier invoices and laboratory fees fall on fixed dates.

Maintaining weekly or fortnightly cash flow reviews helps identify:

When income peaks and dips
Which suppliers have the largest impact on monthly outgoings
How changes in appointment volume affect revenue
Whether upcoming investments could create temporary pressure

Digital banking tools can support this by categorizing

spending and tracking income automatically. Alerts for low balances or unusual transactions help owners respond early rather than react later.

Consider short-term financial tools that support stability

Temporary cash gaps can occur even in well-managed practices. Rather than delaying essential maintenance or stretching supplier payments, short-term facilities can provide useful breathing space.

Overdrafts

An arranged overdraft gives flexibility for unexpected costs, such as equipment repairs or a high laboratory bill. When used responsibly, it helps practices remain stable without disrupting planned expenditure.

Invoice finance

Many dental practices wait 30–60 days for insurer or plan-related payments. Invoice finance can release a portion of these funds shortly after the invoice is issued. This can improve liquidity, particularly during busy treatment periods with high lab and materials costs.

These tools don’t replace long-term financial planning, but they can prevent small cash challenges from becoming larger operational problems.

Review day-to-day costs and reduce avoidable spending

Cost inflation has made it more important to understand exactly where money is going. A detailed monthly review can reveal spending patterns that are easy to adjust.

Common areas where practices find savings include:

Unused software subscriptions
Over-ordering of materials
Lack of standardized supplier pricing
Energy consumption during non-clinical hours
Contract renewals not reviewed for several years

Even modest adjustments can have a meaningful yearly impact. For example, renegotiating laboratory fees, consolidating suppliers or improving stock management often results in sustainable savings without compromising patient care.

Plan investment with confidence

Investment is still essential for long-term growth. Adding a treatment room, upgrading digital equipment or developing new clinical services can increase revenue and improve patient experience. However, these decisions are easiest to manage when repayment plans are clear and predictable.

When planning investment, consider:

Timescale: How soon will the investment generate a return
Repayment structure: Whether fixed monthly payments align with your cash flow
Asset lifespan: Matching the loan term to the expected life of the equipment
Operational impact: Whether the change increases chair time or reduces downtime

Fixed-term business loans can help owners spread costs and plan more effectively. They also give clarity during periods of cost inflation, when future budgeting accuracy matters more than ever.

Protect the patient experience

While cost control is important, reducing investment in patient-facing areas can have long-term consequences. Delayed equipment servicing, reduced appointment availability or outdated technology can affect satisfaction, retention and treatment uptake.

Consistent patient experience contributes directly to:

Stable revenue
Strong treatment acceptance
Increased referrals
Better long-term business value

Payment processes also matter. Card and digital payment tools that settle funds quickly can help reduce overdue balances and provide a smoother checkout experience.

Build resilience through your team and clinical model

Practices that operate effectively without relying heavily on a single dentist tend to be more resilient. Developing the wider team through training and clear delegation supports long-term growth and protects business value.

Consider:

Expanding the role of associates
Training team members in complementary treatments
Reviewing the mix of private, NHS or plan-based services
Creating a clear clinical and operational structure

This helps protect the practice from unexpected staff changes and makes it more attractive to future buyers or partners.

Review your long-term plan

With costs rising, planning ahead is more important than ever. Setting aside time each quarter to review the practice’s financial performance, investment needs and future aims helps ensure the business remains stable and prepared for change.

A typical quarterly review might include:

Updated cash flow forecasts
A review of supplier contracts
Equipment maintenance planning
Team development needs
Forward planning for tax and regulatory commitments

This structured approach gives owners clearer visibility and reduces risk as the practice evolves.

Summary

Although rising costs remain a challenge for dental practices, there are practical and manageable ways to maintain stability. Strong cash flow visibility, careful cost control, clear investment planning and a focus on patient experience all contribute to a resilient, well-run practice.

By taking consistent, deliberate steps, practice owners can protect day-to-day operations and support long-term business value.