A new report released today by the American Dental Association’s Health Policy Institute (HPI) shows that while the percentage of young dentists owning a private practice has declined early in their careers, most are still achieving practice ownership later in their careers.
“Our research found that young dentists are less motivated to open a practice early in their careers, a trend that does not mean they are giving up on their goal of becoming practice owners, but rather delaying that decision until mid- to late-career,” said Dr. Marko Vujicic, HPI Chief Economist and Vice President.
According to the data, only 21% of dentists who graduated between 2016 and 2020 already own a private practice, compared to 33% of those who graduated between 2011 and 2015. In contrast, 63% to 70% of their peers who graduated in 2010 and earlier achieved practice ownership at the same stage of their careers. This trend reflects that while modern dentists start slower, they still have a strong desire to become owners.
Over time, this gap has narrowed. Data shows that 81% of dentists who graduated from 2006 to 2010 owned practices 15 to 19 years after graduation, which is similar to the 89% of the 1991 to 1995 cohort.
“While the practice timeline has changed for the younger generation of dentists, most will still eventually take the step to becoming practice owners, it’s just that it’s happening a little later than in the past,” Vujicic concludes.