ADA slashes US$20 million in costs after drastic overspending

Jeremy Booth, Dental Tribune International

Tue. 16. September 2025

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CHICAGO, US: The American Dental Association (ADA) has rescinded its 2025 operating budget and issued a new document that cuts over US$20 million (€17 million*) in expenses. In addition to operational cuts that include redundancies and discontinued consultancy work, several member-facing initiatives have been suspended, including those promoting leadership and equity and inclusion in US dentistry. This development comes after the association spent US$142 million in reserve funds over three years, leading to questions about the association’s financial oversight and operation.

The cuts were announced in a 7 August bulletin from Drs Brett Kessler and Richard Rosato, ADA president and president-elect, respectively. The changes include:  

• reductions in trustee-related expenses and shifting nearly all board and council meetings to virtual formats; 
• restriction of live continuing education events to future annual scientific sessions; 
• suspension of the Leadership Institutes and the Advisory Committee on Equity, Inclusion, and Interprofessional Relationships; 
• discontinuation of funding to support advocacy of the Dentist and Dental Hygienist Compact and advocacy work relating to the National Conference of State Legislatures; 
• cancellation of the planned ADA Forsyth Certified Program (which was due to begin offering validation of dental products in November) and the ADA Loyalty Program, as well as suspension of investments in product development via the Innovation Advisory Committee;
• scaling back of the ADA Dental Experience and Research Exchange; 
• reduction of funding for the ADA Faculty Ambassador Program and shifting of the ADA Success Program educational sessions to a virtual format; 
• reduction of engagement with dental support organisations and conclusion of the work of the ADA Large Group/Multi-Site Practice Engagement Task Force; and 
• cutting of operational costs for marketing, consultancy and agency work, limiting of participation in dental conferences and events, and reduction of staff count. 

The association explained that its board of trustees approved the changes in July after lengthy discussions about how the ADA could recover from successive years of deficit spending and large investments. During the three-year period that ended in March this year, the association spent US$142 million in reserve funds on what it said were initiatives “designed to help modernise and grow the association”. The significant outlays were prompted by downward membership trends. At 53.5% at the end of 2024, the association’s membership market share has declined by 1.0%–2.0% annually over the past 15 years and by 7.2% since 2020. A 2021 projection showing that membership among US dentists would dip below 50% in 2026 led to the creation of a new business plan to grow and strengthen the organisation; however, this appears to have been ineffective and overly costly. 

“The board is working toward achieving a balanced budget in the long term, and the 2025 budget cuts are a necessary step in that direction.”—Dr Brett Kessler, ADA president 

The total reserve expenditure included absorbing a spending deficit of US$27.5 million for 2023 and 2024, US$53.0 million invested in the new Fonteva association management system, US$22.0 million in costs associated with merging the ADA Science and Research Institute with the ADA Forsyth Institute, and US$14.1 million spent in relocating to a new headquarters in Chicago. Approximately US$25 million from reserve funds was used for further system and organisational changes, strengthened advocacy work and the establishment of the ADA Innovation Advisory Committee for industry investments. Dental Tribune International understands that the advisory committee made unspecified investments in at least three dental companies: Oral Genome, Overjet and Pearl. 

The 2025 budget was ultimately rescinded after a financial review in the second quarter of this year showed that expected revenue growth and cost savings would not materialise, income for the first quarter having been down 6% year on year. Dr Kessler said that the “strategic initiatives were designed to help modernise and grow the association; however, the board acknowledges that implementing large-scale changes very quickly has placed unintended financial strain on the ADA”. He added: “The board is working toward achieving a balanced budget in the long term, and the 2025 budget cuts are a necessary step in that direction.” 

In 2024, the American Dental Association sold its expansive headquarters located at 211 East Chicago Avenue in downtown Chicago to the Ann & Robert H. Lurie Children’s hospital. (Image: JHVEPhoto/Adobe Stock)

The ADA said that its reserve funds totalled US$205 million prior to the spending, indicating that cash on hand may have been depleted to around US$60 million. The ADA sold its expansive downtown Chicago headquarters in 2024, creating a quasi-endowment fund to generate income and cover the expenses associated with leasing a new headquarters in the city. The association says that it now holds collective reserve funds of US$167 million, including the value of the quasi-endowment fund. 

Dentists are asking questions

Founded in 1859 in Niagara Falls in New York, the ADA is one of the world’s oldest and largest dental associations. Its wide-reaching membership, structure and influence have made it a powerful stakeholder in national health matters. Historically, the association has been the subject of criticism for discriminating against minority dentists prior to 1965 and more recently for lobbying to restrict the provision of basic oral care by dental hygienists and dental therapists and to exclude dental coverage under the Medicare health benefit.

Members are now duly questioning the ADA’s transparency, financial acumen and ability to effectively provide strategic governance. One of the association’s most vocal critics, Dr Bob Dokhanchi, took to social media in April this year to alert fellow ADA members to the ongoing budget deficits and reserve expenditure. Writing on LinkedIn, Dr Dokhanchi called for a full forensic audit, stating: “It is alarming that such an audit has not already been launched.” 

Writing in the August bulletin, Dr Rosato stressed that the ADA remains committed to its members and the dental profession. He said: “This financial realignment positions us to sharpen our focus on science, education, practice, advocacy and membership.” 

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