How much should you raise your fees in 2025?

Believe it or not, 2025 is right around the corner. Now is a time to look at what happened last year and plan for the new year. It's time to look at practice systems, which include raising dental practice fees.

Estela Vargas, CRDH.

Are you shaking in your shoes when it comes to raising your fees? Are you afraid you'll lose patients?

You aren’t alone. Most dentists and their teams experience some jitters when discussing the cost of treatment, insurance benefits, and out-of-pocket costs with patients.

Some staff have said they are uncomfortable with the fees, because they can't afford the dentistry the doctor is recommending to the patient. Teaching your staff about the long-term value of good dentistry is needed and is a subject for another article.

While it's natural to feel trepidatious about adjusting your dental fees, it's important to remember that raising fees is vital to maintaining a stable, profitable business.

Raising fees must be an annual task and should be looked at systematically. Just as costs of supplies, rent, equipment, and staffing go up, so, too, should your fees. Is your profit 35% of gross collections? This benchmark can indicate you may need to produce more or collect more.

According to the latest information from Burkhart Dental in their 2024 report, fees should increase yearly by about 5% (but this can vary with economic forces).

Initially, to determine your fee increase for the next year, you need to balance the practice fee schedule. With 30 codes accounting for 90% of billable production in most practices, getting those fees at a healthy level is critical.

Get an accurate data source that compiles filed insurance claims from your ZIP code. You can get this service in varying terms from your dental supply dealer, dental claims company, or dental consultant. I have had the best success with Fair Health, because its data source is insurance company billings from private or standard office fees.

Select a fee schedule that accurately reflects the quality of care your practice provides. Dentists waste time and energy adjusting individual procedure fees based on patients' perceptions and insurance company reactions. It's better to increase across the board. Schedule the day of your fee increase in the practice calendar every year and never miss a year.

Fee schedules are proprietary information only shared with a patient once you present a treatment plan. Most patients are only aware of the fees that directly affect them, such as hygiene fees. Hygiene fees should be raised gradually and not significantly after postponing fee increases for several years. If you present a treatment plan for a crown to a patient who last had a crown five years ago, they will expect an increase and probably don't remember what they paid for the last crown. Losing patients is a risk, but it can be mitigated by realizing what patients purchase the most and gradually raising those fees to not shock the patient.

Raising fees yearly and gradually doesn't usually alarm patients, unless you raise them 10% or more to play catch-up. Your practice type will determine fee increases. An implant-driven practice may want to consider the costs of all components, risk factors, materials, time, and skills necessary to determine the fees.

To avoid patient conflict or complaints, some practices wait too long to raise fees and find themselves unable to afford new equipment, software, repairs, staff raises or benefits, and, importantly, new cutting-edge technology. Not raising the fees may have promoted the reputation of the cheapest dentist in town.

You may worry that raising your fees could cause patients to leave. Do you want these patients anyway? Suitable patients will go if you don't keep up with the latest dental care. They will notice when your equipment, chairs, and supplies look worn and dated.

Cash practices should mostly add more value and services and flaunt the exceptional care they provide. Most patients want to hear about what you can do for them.

Not meeting your financial goals is a clear sign that it's time to raise your fees. If you haven't established specific goals, now is the time. Think big picture and big future and from there, determine how much revenue your practice needs to get there. Setting and achieving these goals will not only ensure the sustainability of your practice, but it will also keep you motivated and focused on your long-term success.

Editor's note: References available upon request.

Estela Vargas, CRDH, is the founder and CEO of Remote Sourcing, a dental insurance billing and revenue recovery service. She is a graduate of Miami Dade College's dental hygiene program. Vargas' extensive background in the clinical arena of dentistry is coupled with her experience as a practice administrator and business executive.

The comments and observations expressed herein do not necessarily reflect the opinions of DrBicuspid.com, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.