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Blog By:
Nick Fotache

There has been a lot of talk about how Trump’s tariffs could affect the dental industry, especially for practices in Canada. But is this something dentists should panic about? Or is there a hidden opportunity buried in all the uncertainty?

In a recent webinar that we did, industry veterans Bill Henderson and Dr. Bernie Dolansky laid out the facts, data, and their professional experiences to give dental professionals a clear picture of what’s really going on.


 

Here’s a straightforward breakdown of what you need to know.

Dentistry Is Recession-Proof

The biggest takeaway from this discussion is that dentistry is one of the most resilient industries in the face of economic uncertainty. Over the last 45 years, dental revenues in Canada have only dropped in two years—2010 and 2020. And 2020 only dipped because practices were forced to close due to COVID-19.

Even during past recessions in 1980, 1982, and 1991, dental practices still saw growth. Why? Because people will always need dental care. Toothaches don’t stop during a recession. This consistent demand makes dentistry a safe and stable business.

Tariffs Will Have Minimal Impact on Supplies

A big concern for many dentists is whether Trump’s tariffs will increase the cost of dental supplies and equipment. This concern is mostly overblown.

When tariffs were first announced, there were worries about items like fluoride, toothpaste, and metal-based tools being affected. But the Canadian government quickly exempted most healthcare-related products, so dental offices won’t see major price hikes on essential supplies.

Even if a few costs go up slightly, supplies only make up about 7% of a practice’s total revenue. So even a 10–20% increase on some supplies would have very little overall impact on profitability.

Buyers Are Cautious—But It’s a Great Time to Buy

The current economic uncertainty has made first-time buyers more cautious. Many are offering lower bids, even if a practice’s value hasn’t changed. This creates a window of opportunity for savvy buyers to purchase a quality practice at a good price.

At the same time, corporate buyers and DSOs are not slowing down. They’re actively buying practices and staying aggressive, especially in high-demand regions like the GTA. In fact, one recent sale in the Burlington-Oakville area received over 20 offers and sold above the appraised value.

Valuations Are Holding Steady

Despite fears about the economy, practice valuations are still strong. In most areas—like Southern Ontario and parts of B.C.—demand still outpaces supply. That means if you’re planning to sell your practice in the next 2–3 years, your value likely won’t drop.

What might change, though, is how long it takes to find the right buyer, especially for smaller practices under $2 million in value. Individual buyers are more sensitive to economic headlines and may take longer to make decisions.

CDCP Could Boost Revenue—If You Balance Bill

This sounds like great news—and it is—but there’s a catch: you must balance bill.

If you accept CDCP patients without charging the difference between what the government pays and your standard fees, you’re taking a huge cut in your bottom line. And that directly affects your practice’s value.

To put it in perspective: if you lose $10,000 in income because you don’t balance bill, and your practice is valued at six times your earnings, you’ve just lost $60,000 in value. Multiply that across several years, and it adds up fast.

Even more importantly, buyers don’t want practices that rely solely on CDCP rates. Most will ask right away whether you balance bill. If the answer is no, many won’t even consider your practice.

The Bigger Risk: Private Insurance Pullback

Another concern tied to CDCP is that private insurers and unions may cut their dental coverage, assuming their members will now be covered by the government. If this happens, it could shrink the pool of patients with good dental benefits, and reduce the overall profitability of many practices.

While this is out of dentists’ control, it’s something to watch closely. The current strength of Canadian dentistry is built on the fact that about 70–75% of patients have private insurance. If that drops significantly, it could change the business landscape for dental offices across the country.

Marketing Data Shows Stability

From a marketing standpoint, not much has changed. According to our data, it still costs about the same to acquire new patients as it did before Trump’s policy changes.

In November 2024, it cost about $103 to get a new patient on the phone and around $257 to get them into the chair. In April 2025, those numbers are $109 and $261, respectively—virtually unchanged, especially when you consider inflation.

This means dental marketing is still effective, and practices should continue with their marketing efforts rather than pull back out of fear. In fact, during uncertain times, pulling back can hurt you more by giving your competitors an open playing field.

Equipment Sales Are Up—And That’s a Good Sign

One surprising trend was that equipment sales are actually increasing. This may be partly due to practices upgrading before potential cost increases, but more likely it’s a reflection of industry confidence.

Dentists are investing in technology like digital scanners to improve patient experience and help manage staff shortages. These upgrades are also attractive to buyers looking for modern, efficient practices.

What’s Next for the Industry?

In the next 2–3 years, the dental industry is expected to stay strong—as long as you adapt wisely. That means: 

- If you’re a buyer, now is a rare opportunity to get a good deal.
- If you’re a seller, focus on maintaining profitability and balance billing.
- If you’re a practice owner, stay consistent with your dental marketing, continue investing in patient experience, and keep an eye on industry changes.   

Final Thoughts

The political and economic landscape may be full of uncertainty, but your dental practice doesn’t have to be.

Dentistry is resilient. It has weathered recessions, pandemics, and policy shifts. The key to success moving forward is staying informed, adapting to change, and making smart business decisions.

If you keep your focus on delivering quality care, managing costs, and running your practice like a business, you’ll not only survive these uncertain times—you’ll thrive in them.