According to a study published on March 28, 2022, by the Office of the Actuary at the US Centers for Medicare and Medicaid Services, annual spending on dental care in the United States is projected to increase over the next few years, skyrocketing to $230 billion by 2030. The study examined the health and economic impact of the COVID-19 pandemic on the healthcare industry, with the authors concluding that it is expected to lessen.
As stated in the report, “Factors that typically drive changes in health spending and enrollment, including economic, demographic, and health-specific factors, are expected to be the main influences on trends in the health sector for 2025 to 2030. The health spending share of the GDP is expected to reach 19.6 percent by 2030.” After the declines observed in 2020 due to the pandemic, healthcare use is projected to rebound and normalize through 2024, with growth expected in all healthcare sectors in the near future.
While the dental industry saw declines similar to those in other healthcare industries throughout the pandemic, this study, combined with historical data and polling information collected throughout 2021 from the American Dental Association, paints a positive and reassuring outlook for the future. According to one poll, as of October 2021, patient volume remained stable at 90% pre COVID-19 levels, and nearly 1 in 4 respondents planned to hire more staff in the coming months. This affirms historical indications that dentistry is resilient to economic downturns, crises, and fluctuations.
These studies provide continuing evidence in favor of investing in the dental industry. As one of the most profitable medical industries in the United States, investing in dental can offer a unique diversification benefit to your portfolio with the potential for excellent returns. Click here to learn more about Operation Dental’s private placement funding initiative.