Group dental practices must keep a sharp eye on operational expenses to stay competitive and resilient. Operational resilience isn’t just about surviving tough times—it’s about creating efficiencies that endure. Based on the experiences of real-world, successful group dental practices, here are some practical strategies businesses can implement now to tighten spending, boost efficiency, and build a more sustainable business model.
#1 Understanding Your Spending and Focus on the Essentials
Like managing a household budget, practices should distinguish between essential and discretionary spending. By tightening discretionary expenses, teams can build strong financial habits that safeguard cash flow. Regularly reviewing the cash position and adjusting spending accordingly ensures that the practice stays on solid financial footing.
#2 Spend Strategically to Protect Revenue
Cutting costs blindly can be a mistake—especially when reductions impact revenue-driving activities like treatment planning, marketing, or patient retention efforts. Rather than trimming across the board, practices should evaluate where investments in expertise, systems, or marketing can actually boost revenue and safeguard long-term value. The goal is not just to save money, but to spend smarter in ways that protect and grow the business.
#3 Fine-Tune Supply Spending
Supply costs, including dental and lab supplies, often fly under the radar but can have a meaningful impact on profit margins. Practices should set strict budgets—aiming to keep supply costs around 4-5% of collections—and tighten inventory management. Using tools like e-procurement platforms and consolidating vendor relationships can improve pricing and reduce waste. Practices are encouraged to rotate stock carefully and avoid over-ordering, bringing supply systems closer to a Just-In-Time (JIT) model.
#4 Right-Size Staffing Without Sacrificing Care
Staffing costs are another key area for scrutiny. Rather than defaulting to layoffs—which can damage morale and create new inefficiencies—practices should evaluate whether vacancies truly need to be filled. Leadership should look at each department’s workload, eliminate redundancies, and ensure team members are cross-trained where possible. This approach strengthens operations without compromising patient care or staff well-being.
#5 Leverage Expert Guidance
Running an efficient practice requires specialized expertise. Whether it’s financial modeling, operational assessments, or leadership coaching, working with experts helps practices avoid costly missteps and unlock new opportunities for improvement. Consulting with seasoned advisors ensures that practices are not only cutting costs where appropriate, but also maximizing revenue and strengthening patient and referral relationships.
#6 Strengthen Referral Relationships and Treatment Planning
For specialty practices, maintaining strong referral relationships is essential. Practices should actively nurture these connections to keep patient pipelines flowing. Additionally, improving treatment planning and case acceptance rates can significantly lift revenue. A recommended resource for practices aiming to elevate their patient engagement and sales approach is the book The Challenger Sale, which offers strategies for educating and guiding patients to optimal care decisions.
The most resilient practices don’t wait for external market conditions to change to evaluate performance—they build regular check-ins into their operational rhythm and help maintain the team’s team focus on what matters most: patient care. Whether reviewing financial performance monthly or quarterly, practices should ask: Are we operating at maximum efficiency? What can we improve? Small improvements, consistently applied, create lasting resilience.
For practices ready to optimize operations and sharpen their growth strategy, Polaris Healthcare Partners offers advisory services designed to help businesses thrive in any market condition. To learn more or schedule a consultation, get in touch with Adin Bradley, Executive Consultant& Fractional COO at .
