The Impact of the Pandemic and Interest Rates on the Value of Dental Practices in Canada DavidChong Yen foundedDCYProfessional CorporationChartered Professional Accountants, a tax firmbased inToronto that specializes in advising the dental profession. The views expressed are those of the author and do not necessarily represent the opinions and official policies of CDA. The COVID-19 pandemic increased the demand for dentistry in many parts of Canada. “Many Canadians benefited from the government’s efforts to stimulate the economy during the pandemic, but, at the same time, they had fewer options for spending,” says David Chong Yen, an accountant who specializes in advising within dentistry. “Some people focused more on their health, and they had extra money to spend on their oral health.” The pandemic also prompted a significant number of dental hygienists and dental assistants to leave their positions and seek employment in other fields. It also decreased the number of new immigrants to Canada in 2020, which had wide-ranging impacts on the labour market, including contributing to staffing challenges for dental practices. Then, inflation increased the costs of running a dental practice and interest rates were raised to try to curb inflation, all of which has had significant implications for the buying and selling of dental practices. “For many practices, increased operating costs and staff challenges have caused a financial squeeze,” says ChongYen. An increase in remote employment or hybrid return-towork scenarios have affected urban and rural dental practices in different ways. “Dentists in the downtown cores of major metropolitan areas saw some decrease in demand,” says Chong Yen. “While in some rural areas, remote workers have actually had a positive impact on patient volumes.” 31 Issue 5 | 2023 |
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