Feeling the Squeeze? How to Stay Profitable When Costs Go Up and Insurance Pays Less

 

Why smart systems are your best defense in a tight-margin world

If your supply costs are up and your insurance payments are down, you're not imagining things.
This is the new reality for dental practices everywhere.

Over the last few years, the cost of dental supplies, lab work, and staffing has steadily increased. At the same time, insurance companies are cutting reimbursements, delaying approvals, and tightening policies.

The result? Many practices are feeling squeezed from both sides.

But here’s the good news. Even in this tough financial environment, some practices are thriving. And the difference isn’t luck. It’s efficiency.

In this blog, we’re breaking down what’s causing the pressure, how it’s impacting your profitability, and what you can do to stay one step ahead.


The Pressure is Real: What's Driving It?

1. Supply & Lab Costs Keep Climbing

Basic materials like gloves, bonding agents, and impression trays have gone up in price and are staying high. Lab work is costing more, too, especially for complex restorations or cosmetic cases.

2. Insurance is Paying Less and Asking More

More pre-approvals. Stricter coding rules. Reduced fee schedules. It’s taking longer to get paid, and you're getting paid less for the same procedures.

3. Rework and Missed Charges Are Hitting Harder

In a low-margin environment, every unbilled x-ray or inaccurate code can mean hundreds—or thousands—of dollars lost each month.

 

Why Efficiency is the New Profit Strategy

You can’t always negotiate your lab fees. You definitely can’t control insurance companies.
But you can control what happens inside your practice.

The most profitable practices today are focused on tightening operations, improving workflows, and making sure every procedure is billed, documented, and done right the first time.

Let’s look at what that actually means.

 

What Efficient Practices Are Doing Differently

Here’s the good news: even in a tight labor market, some practices are thriving. Why?

Because they’ve learned how to make onboarding fast, simple, and clear.
When great hires are hard to find, your focus should be on keeping them—and making sure they succeed from day one.

Let’s break down how they’re doing it:

1. They Have SOPs for Every Financial Process

From submitting claims to collecting co-pays, every financial-related task is documented and followed the same way every time. No guesswork. No shortcuts.

When you systematize billing, collections, and insurance submission, you reduce errors and improve cash flow. It's that simple.

2. They Train Every Team Member to Look for Revenue Leaks

Whether it's a hygienist forgetting to note fluoride treatment or the front desk skipping over a same-day sealant, missed procedures are more common than you think.

Efficient teams are trained to know what to look for and when to look for it, with role-specific SOPs to back them up.

3. They Eliminate Rework Through Clarity

How many times have you had to re-do a claim because of an incorrect code or missing documentation? Every time that happens, it costs time and delays payment.

With clear procedures and digital references, your team has fewer "Do I have to..." or "How do I..." moments. That means fewer mistakes, fewer re-dos, and faster turnaround.

4. They Align Clinical and Admin Teams

Everyone should understand how their role impacts revenue. When your clinical team knows what needs to be documented for billing to go smoothly, and your admin team knows what questions to ask and when, everything flows better.

It’s not just about working harder. It’s about working smarter—together.



How My Dental SOP Helps Practices Protect Their Profits

At My Dental SOP, we help practices build a library of digital, step-by-step procedures that your whole team can access in one place. That includes:

  • Billing and collections workflows
  • Insurance submission checklists
  • Coding guides by procedure
  • Front office financial conversations
  • Clinical documentation standards

Our system helps eliminate errors, align your team, and create consistency across every location and every role. No more missed revenue. No more costly confusion.

 

Final Thought

You can’t control rising costs. You can’t force insurance to pay more.
But you can make sure your practice isn’t leaving money on the table.

Now is the time to tighten your systems, empower your team, and protect your margins with better workflows and consistent training.

Because in today’s dental economy, efficiency is profitability.

👉 Ready to find and fix the hidden leaks in your practice?
Schedule your 8-minute demo of My Dental SOP and let’s help you keep more of what you earn.