The Canada Dental Care Plan (CDCP) is making waves across the dental industry. By providing more affordable dental care to many Canadians, it aims to expand access to much-needed treatments. But the CDCP has left many dental professionals asking questions: Is this good for my practice? How will it impact our profitability and the value of our practice? And what does it mean for our patient relationships?

In a recent webinar, we spoke with industry experts Bill Henderson and Dr. Bernie Dolansky from Henry Schein Tier Three. They shared important insights and strategies to help dental practices adapt to the changing landscape.

The CDCP was designed to make dental care more accessible by covering a significant portion of treatment costs for eligible Canadians. Approximately 75% of dentists are currently participating, and it’s seen as a positive step by many patients who previously struggled to afford care. For practices, it offers a chance to increase patient volume.

However, the program also brings challenges. The key to its success for many practices is balance billing, which allows dentists to charge patients the difference between what the government covers and the actual treatment costs. This enables practices to maintain profitability. But there are concerns about the long-term stability of this system. Over time, the government may change reimbursement rates, impacting how much a practice can charge. This uncertainty is something all dentists must keep an eye on.

The CDCP currently reimburses around 85% of treatment fees, which is a good starting point. However, patients often misunderstand the program, believing their dental care is “free.” In reality, many families—especially those with a household income between $80,000 and $90,000—end up paying a significant portion of the cost, sometimes up to two-thirds of the treatment fee.

Another aspect that may affect practices is the upcoming requirement for predetermination. This means dental offices will need approval before performing certain procedures, adding administrative time and effort to the process. Unlike private insurance predeterminations, the efficiency of the CDCP’s approval system is still in question, which could lead to delays and additional work for dental teams.

One critical area that practices must focus on is patient communication. Because many patients mistakenly believe that the CDCP covers all dental costs, it’s essential to educate them about their responsibilities, such as co-pays and balance billing. Properly setting expectations can help avoid confusion, build trust, and maintain a positive relationship with your patients.

Train your front desk staff to clearly explain the costs of treatment and how the CDCP works. A simple approach could be sharing a breakdown of the expected fees and what portion the patient is responsible for. This way, patients can make informed decisions and aren’t caught off guard by unexpected costs. Some practices have found success by proactively reaching out to patients who may qualify for the CDCP. By sending letters or emails explaining how the program works and what their financial responsibility will be, you can create transparency and reduce misunderstandings.

One of the biggest concerns with the CDCP is how it will affect the value of dental practices. The answer isn’t straightforward and depends on how the program develops and how practices choose to engage with it. If managed well, the CDCP could lead to a 10-20% rise in procedures performed across the country, increasing practice revenue. If balance billing is maintained and reimbursement rates are aligned with costs, the financial impact could be positive. However, if these rates decrease or if the ability to balance bill is taken away, practices could see a drop in profitability. Economic modeling suggests that practice revenues could drop by 45-50%, significantly reducing the value of practices if reimbursement rates fall behind the cost of care.

Balance billing is crucial for practices to stay profitable and sustainable. Without it, practices risk losing income, especially if the CDCP reimbursement rates don’t keep up with increasing costs. Although some practices choose not to balance bill to attract more patients, this can be a short-term gain with long-term consequences. If a large number of dentists choose not to balance bill, the government may decide to remove the option entirely. Politicians could argue that practices are financially stable without it, leading to potential loss of an important revenue stream. Therefore, maintaining balance billing isn’t just about individual profitability—it’s a collective effort to ensure the program remains beneficial for all dental practices.

The CDCP will likely increase demand for dental care, requiring more hygienists, assistants, and administrative staff to handle the influx of patients. This increased demand can drive up wages and make hiring a challenge, especially in areas already experiencing staffing shortages. Practices must find ways to improve efficiency, streamline workflows, and manage operational costs to stay ahead. Many practices may already feel overwhelmed by day-to-day management, so adding more patients and the administrative load of the CDCP could make it difficult to keep up. Investing in staff training and technology can help offset the additional workload, ensuring that patient care remains efficient and profitable.

The CDCP is here to stay, and it’s up to each practice to decide how to adapt and make the most of it. For many, balance billing will be the key to staying profitable. Clear patient communication is essential to help patients understand their costs and to maintain trust. Proactively reaching out to patients about the program can also build a positive narrative around it, helping patients understand how it benefits them.

Check the full interview on our YouTube channel.