Dental practices across the UK face a financial balancing act like never before. While patient demand remains strong—particularly in private care—rising operational costs are increasing margins and pressure practice owners to rethink their business models.
From soaring lab bills to escalating utility prices, the cost of keeping the lights on and the service level high is becoming a growing concern. According to recent figures from the British Dental Association (BDA), utility costs have increased by around 10%, staffing costs by 15%, and laboratory fees by 16.5%—far outpacing the 4% uplift provided in NHS contracts announced in May this year. Though these figures are drawn from NHS-facing data, they reflect the broader inflationary pressures facing the entire sector.
Rising costs, shrinking margins
Staff wages have been one of the most significant contributors to cost increases over the past 12 months. With recruitment challenges rife across the sector—particularly for dental nurses and hygienists—practices must offer more competitive packages to attract and retain talent.
At the same time, suppliers are increasing prices across the board. Lab work, consumables and cross-infection control products have all increased, while energy bills remain high despite stabilising from their 2022 peak. For many Principals, this results in a tightening margin, where the only apparent option is to pass the cost on to patients.
But frequent fee increases can be risky. As the cost-of-living crisis continues to bite, patients are becoming more price-sensitive, and sporadic hikes in treatment fees can impact loyalty and attendance. In this environment, practices need smarter, more sustainable strategies for managing their income.
Unpredictable revenue, predictable pressure
One of the key challenges practices face is unpredictability. While pay-as-you-go-led models can be highly profitable, they’re also highly variable. A single quiet month can make the difference between meeting overheads and running into the red, particularly for single-site practices with limited reserves.
This unpredictability is compounded by patient behaviour. In tougher economic times, people delay routine or elective treatments, often waiting until an issue becomes urgent before seeking care. That means fewer hygiene appointments, lower uptake of whitening or cosmetic procedures, and more peaks and troughs in revenue.
What’s needed is a way to balance out the bumps—a way to bring in income even when the chair isn’t full every hour of every day.
Plans as a buffer against volatility
This is where dental plans can make a real impact. While not a new concept, their value is renewed in light of current pressures. Plans create predictable, recurring income. They incentivise regular attendance. And they offer patients a way to manage their dental care more affordably, spreading the cost and encouraging preventative habits.
For practices, plans act as a financial buffer. They provide visibility and stability in monthly income, helping to cover fixed costs regardless of seasonal variation or short-notice cancellations. Essentially, they help build long-term patient relationships, allowing patients to stay loyal beyond the next treatment cycle.
Launching with confidence
Of course, launching a new plan in practice isn’t something to do lightly. It requires planning, communication, and support to ensure smooth implementation and patient uptake. That’s why many practices are now working with plan providers who offer dedicated new plan launch services to get things right from the start.
Patient Plan Direct is one such provider offering a comprehensive new plan launch service that gives practices everything they need to design and implement a successful private dental plan. From pricing strategy and branding to patient communication and team training, the service is designed to remove the hassle and maximise impact, helping practices respond to cost pressures with a more stable, sustainable business model.
Looking ahead
As cost pressures show no sign of easing, the need for financial resilience has never been clearer. Practices that can smooth out their income, foster patient loyalty, and reduce reliance on one-off treatments will strengthen their position to grow sustainably.
Private dental plans aren’t a silver bullet—but in a high-cost, low-predictability climate, they are proving to be a smart step forward.
If your practice has considered launching a plan but never quite got off the ground, now could be the right time to revisit the idea. With the right support, it’s easier to lay the foundations and start building towards greater financial stability. Contact Patient Plan Direct on 0344 848 6888 or click here to send your enquiry.