ARTICLE
24 April 2025

Benesch's Dental/DSO Intelligence Monthly Report: March 2025

B
Benesch Friedlander Coplan & Aronoff LLP

Contributor

Benesch is an Am Law 200 business law firm with more than 400 attorneys and offices in Cleveland, Chicago, Columbus, New York, San Francisco, Shanghai and Wilmington. The firm is known for providing highly sophisticated legal services to national and international clients that include public and private, middle market and emerging companies, as well as private equity funds, entrepreneurs and not-for-profit organizations.

Port Canaveral, Orlando The weekend conference, held on the Utopia of the Seas, offers courses and presentations by dentistry's leading professionals.
United States Food, Drugs, Healthcare, Life Sciences

CALENDAR OF EVENTS

Smiles at Sea
APRIL 25–28, 2025
Port Canaveral, Orlando The weekend conference, held on the Utopia of the Seas, offers courses and presentations by dentistry's leading professionals. Attendees can earn 8 CE, learn about the latest changes in the industry and interact with fellow dental professionals.

For more information, please click here.

AAE Annual Meeting APRIL 2–5, 2025 Hynes Convention Center, Boston The conference includes discussions and demonstrations for advancements, breakthroughs, and techniques in endodontics, along with networking with peers, mentors, and experts from around the world. AAE25 will also hold handson workshops led by experts and an expo hall filled with products and service demonstrations. For more information, please click here.

AAE Annual Meeting
APRIL 2–5, 2025
Hynes Convention Center, Boston The conference includes discussions and demonstrations for advancements, breakthroughs, and techniques in endodontics, along with networking with peers, mentors, and experts from around the world. AAE25 will also hold handson workshops led by experts and an expo hall filled with products and service demonstrations.

For more information, please click here.

SmileCon 2025
OCTOBER 23–25, 2025
Washington, D.C. Save the date for SmileCon 2025, where participants can join dental professionals on October 23–25 in Washington, D.C.

For more information, please click here.

AACD 2025 San Diego
APRIL 3–5, 2025
Manchester Grand Hyatt, San Diego The convention offers access to top educators and a supportive esthetic community, along with access to lectures and applicable hands-on workshops. AACD also features esthetic-focused exhibitors showcasing their dental technologies and services, networking breakfasts and lunches, plus social hours and events.

For more information, please click here.

Bruce Wickham, partner and COO at Zimmerman Boltz & Company since 2010, specializes in consulting dentists on financial, tax, and practice management strategies. With over 350 dental clients, the firm is a founding member of the Academy of Dental CPAs. Bruce's prior roles include CFO at SBC Advertising and auditor at Ernst & Young, showcasing his diverse financial expertise.

How was Zimmerman Boltz & Company started and what has your career path been like?

Zimmerman, Boltz and Company was founded by Don Zimmerman in 1974, who was originally from Cherry Hill, New Jersey. He started the firm to serve small business owners, but quickly found his niche in dental. We all owe a lot to Don for being the founder and visionary of what our company is today. Approximately 10 years later, Jim Boltz joined him and was partners with Don until 2004. Through that time, the firm's reputation grew to be known as a premier dental accounting firm. Both Don and Jim were very actively involved in the dental community. Jim has been speaking to dental students at the OSU College of Dentistry for nearly 40 years.

In 2001, ZBC became one of the founding members of the Academy of Dental CPA's, a non-profit organization where member firms share ideas and best practices in the dental accounting industry. There are approximately 30 firms from all across the country in the organization. We help make our individual firms stronger by the knowledge and expertise of the whole group. But, what appealed to me most when I was looking to join ZBC was the way they genuinely cared for their clients and their team members. If you ask anyone who knows Jim, they would say "he would give you the shirt off of his back." Our culture is built on this genuine caring for others. We always refer to our team as the "ZBC Family."

I started my career at Ernst & Young in Columbus in 1995. I was in audit and had great experiences getting an inside look at some of the largest companies in Columbus. It was a great way to start a career. In 1998, I left Ernst & Young to be the controller at SBC Advertising, one of the largest retail advertising agencies in Columbus. After several years there, I became the CFO and then partner. In 2010, I was at a crossroads. I wasn't sure advertising was my future. So, after 12 years in the ad business, I had to decide what I wanted to do next. I boiled it down to, "I want to use what I have learned to help people on a more personal level."

In August of 2010, I joined ZBC. At the time, I thought it was going to meet my stated objective for my new career, but I truly didn't realize how much it would. We are dealing with small business owners on a very personal level that need our help. It has turned out to be as fulfilling as I had hoped and more. In 2017, I became partners with Jim and we continue to do our best to serve our clients every day.

What services do you offer?

We offer accounting, tax and consulting services. Our base service for a dentist includes preparation of dental specific monthly financial statements, quarterly meetings to review financials with the client, quarterly tax projections, local tax filings, 1099 filings, and the practice and personal tax returns. We believe this encompasses the base level of what a dental practice owner needs.

The quarterly meetings are an important part of what we do, because we get to use the financials with the client and talk about how to improve their business and help them reach their goals. We also offer budgeting and planning services. I'm a big fan of this service. I believe all businesses should plan out their year to set expectations. Then, they should continually measure against those expectations throughout the year.

There are many other services that we offer as well. We do practice buyer representation, consultation with bringing on partners, incentive plan concepts and implementation, staff meetings and education, assistance in client negotiation with DSO's, and more.

If there are things that our outside of our wheelhouse, we probably have someone to suggest to the client. We never take referral fees. We simply suggest professionals that have done a great job for our clients in the past.

What challenges are you seeing in the dental industry right now? What opportunities?

The number one challenge we see in the current dental market place is staffing. Hygiene and EFDA pay rates have increased by approximately 30-40% over the last several years. This is largely due to the short supply in both of those positions post-covid. Dentists are having to get creative. They are sometimes offering signing bonuses, more vacation, and flexible work schedules, among other things.

Another challenge in the dental industry is the ever-changing advancements in technology. This is also an opportunity. However, the cost to start a dental practice today has increased dramatically over what it was 10 years ago. And if they want to keep up with the latest technology, they need to plan for a continual investment in new technology.

An opportunity and a challenge that many dentists are contemplating today is insurance. I would say that over half of our clients have this as an area to evaluate. Insurance companies have not kept pace with their in-network fee schedules. This is especially true since Covid. With high single digit inflation rates over a number of years, the insurance companies did not increase their fee schedules much if at all. This has many dentist contemplating dropping out of network for some or all of the insurance providers. This is a decision that needs to be thoroughly analyzed before making the leap and monitored closely after a change is made.

As for opportunities, there is still very high demand for dental services and continued advancements in technology. Dentistry isn't going anywhere and it will continue to evolve over time. Dentists have options as well. They can choose to be business owners and have the reward of growing a business. Or, they can choose to focus solely on the clinical side and be an associate. Either way, it's still a rewarding and lucrative career.

What is your favorite movie?

I know this is not a novel answer, but it's Shawshank Redemption. The message of the need for hope in life is so powerful and so true. Without hope, we are rudderless. Watching Red regain his hope for the future and meet Andy on the beach is priceless.

I also love classic comedies. Office Space might be one of the funniest movies of all time.

ADA Advocating for Fluoridation, Says Medical Devices Should Not Be Subjected to Tariffs

The dental industry and DSOs are experiencing change as both continue to embrace technology, including AI.

The political and economic climate shifts have prompted the American Dental Association (ADA) to advocate on key policy issues affecting oral healthcare. The ADA, alongside other dental organizations, are opposing tariffs on dental equipment and medical devices from China, Mexico and Canada, arguing that increased costs will ultimately burden patients and small dental practices. Additionally, the ADA is also urging Utah's governor to veto a bill banning fluoride in public water, emphasizing its proven benefits in preventing cavities and reducing long-term healthcare costs. Meanwhile, the organization is also pressing the Environmental Protection Agency (EPA) to appeal a court ruling that mandates stricter fluoridation regulations, warning of potential consequences for scientific risk assessment and regulatory overreach.

The ongoing dental hygienist shortage has also led the ADA to propose lowering professional qualification requirements to ease the workforce crisis. While this could help reduce long wait times for routine dental care, critics argue that it may compromise quality and are suggesting alternative solutions like marketing campaigns to attract new recruits. In parallel, the ADA is urging Health and Human Services Secretary Robert F. Kennedy Jr. to prioritize oral health policies, including Medicaid dental expansion, maintaining community water fluoridation, and preserving independent dental research institutions.

Still, fluoride's impact on public health remains a contentious topic. While the ADA strongly supports fluoridation as a public health measure, a study suggests that prenatal and early childhood exposure to fluoride may negatively impact cognitive abilities in children. Researchers found a potential link between fluoride levels in urine and lower intelligence scores, fueling further debate on the safety of fluoride in drinking water and children's dental products. This study may intensify ongoing discussions over fluoridation policies and potential regulatory changes in the future.

Looking at the dental industry, it's undergoing rapid growth and transformation due to advancements in technology, shifting business models and regulatory changes. The global dental laboratories market is projected to nearly double by 2034, fueled by increasing adoption of digital dentistry, CAD/CAM technology and 3D-printed prosthetics. Similarly, AI and 3D imaging are driving the dental imaging market, which is expected to surpass $6 billion by 2030.

DSOs are also evolving with the integration of AI, telehealth, and IoT, improving patient care and operational efficiency, but challenges such as workforce shortages and regulatory compliance remain hurdles for industry growth. Meanwhile, a proposed California bill seeks to curb private equity influence in dental and medical practices by ensuring licensed professionals maintain full control over patient care and prohibiting restrictive contract clauses.

Beyond industry trends, patient behavior remains critical for dental care. A study commissioned by Aspen Dental, conducted by Talker Research found 57% of Americans admit to lying to their dentist about their oral hygiene habits, primarily to impress them. Many patients experience dental anxiety, leading some to avoid visits for years. With the need for better patient education and trust-building within dental practices, the dental industry is at the crossroads of technological innovation, evolving business models, patient expectations and regulatory changes that will shape its future.

Sources: DentistryIQ, KSL News, ADA News, Local 12, About Lawsuits, Market Research Future, iData Research, STATS N DATA, Nixon Peabody.

GENERAL DENTISTRY NEWS

ADA, Dental Groups Urge Trump to Exempt Medical Devices From Tariffs

The Dental Trade Alliance, the American Dental Association and the National Association of Dental Laboratories (NADL) have formally opposed new tariffs on dental equipment and medical devices from China, Mexico, and Canada. In a letter sent to the White House, they warn the tariffs would increase costs for manufacturers, dental professionals and ultimately patients. The groups argue rising prices could lead to delayed dental care, worsening long-term health outcomes and increasing overall healthcare costs, and these policies harm healthcare access, especially for small dental practices that cannot easily absorb increased costs.

Source: DentistryIQ

ADA Urging RFK Jr. to Prioritize Oral Health Policies in HHS

The ADA sent a letter to Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., emphasizing the need for policies that expand Medicaid dental coverage, maintain community water fluoridation and preserve the independence of the National Institute of Dental and Craniofacial Research. ADA leaders Dr. Brett Kessler and Dr. Elizabeth Shapiro highlighted concerns about potential funding cuts and regulatory changes that could impact oral health programs, as well as calls for better integration of dental and medical records, updating health data standards and incentivizing dental providers to transition to new health technologies. The ADA also opposes the consolidation of dental research institutions, arguing it could weaken scientific advancements in oral health.

Source: ADA News5

Nationwide Dental Hygienist Shortage Spurs ADA to Propose Lowering Professional Qualifications

A national shortage of dental hygienists is causing long wait times for routine dental care, with some patients waiting up to nine months for cleanings. In response, the ADA has proposed lowering qualification barriers, including allowing dental students and foreign-trained dentists to practice as hygienists. While some dentists support the move to ease the shortage, the ADA warns it could compromise care quality. Critics argue non-accredited training could lower hygiene standards, while others suggest a marketing campaign to attract new recruits instead.

Source: Local 12

Study Links Early Fluoride Exposure to Lower Cognitive Abilities in Children

A study published in Environmental Health Perspectives suggests prenatal and early childhood fluoride exposure may negatively impact cognitive abilities in children aged 5 to 10. Researchers claim they found an inverse relationship between fluoride levels in urine and intelligence scores in a cohort of Bangladeshi children. The study noted the strongest effects on perceptual reasoning and verbal abilities, prompting further discussions on the safety of fluoride in drinking water and children's dental products.

Source: About Lawsuits

ADA Urges Utah Government to Veto a Bill Banning Fluoride in Public Water

The organization is calling on Utah Gov. Spencer Cox to veto House Bill 81, which would prohibit adding fluoride to public water systems. The ADA, alongside local dentists and health organizations, argue that fluoridation is a proven public health measure that prevents cavities and reduces long-term healthcare costs. Supporters of the bill cite safety concerns, financial inefficiency and overexposure risks and, if signed into law, Utah would become the first state to eliminate community water fluoridation.

Source: KSL News

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