LEADERSHIP & LEGACY

ADA discloses challenges

The American Dental Association is confronting a rare moment of public scrutiny. After years of shrinking reserves, a flawed $50 million tech rollout, and critiques from members, the ADA went public in May with an unusually frank disclosure about its finances and operations.

The institution that long defined organized dentistry is now under pressure to prove it can adapt. We're cutting through the dueling blog posts and forum bickering to look at what happened, what it means, and what comes next. Dentistry’s mouthpiece just bit its own tongue.

What happened: In May 2025, the ADA released a rather direct public article confirming that its reserves had dropped from more than $140 million to, allegedly, below $50 million, according to Dr. Howard Farran. It also disclosed that a $53 million investment in a new Association Management System (AMS) had failed to launch as intended. The platform, meant to streamline membership services and billing, instead disrupted renewals and contributed to missed revenue targets.

As a result, the ADA cut over $20 million, although some say as high as $29 million, from its 2025 budget. Several initiatives were paused or scaled back. The proceeds from its Chicago real estate sale were placed into a quasi-endowment to support cash flow.

How we got here: ADA President Dr. Brett Kessler published a follow-up statement explaining membership had declined 1 to 2 percent annually for 15 years. In 2023, the total percentage of dentists belonging to the ADA was only 57%. While reserves grew during the pandemic, membership did not recover at the same pace. To address this, the association adopted a more expansive business model that included tech modernization, research expansion, and national advocacy investments.

Kessler emphasized that the AMS rollout did not go as planned, which directly impacted operations. He called the cuts difficult but necessary and noted that paused programs, including DSO outreach and the Institute for Diversity in Leadership, could return under a five-year rebuilding plan.

Where the money went: Between 2022 and 2025, the ADA deployed more than $140 million in reserves. Major investments included:

• $53 million on the AMS project (Fonteva/Salesforce), which remains incomplete

• $22 million to acquire and integrate the Forsyth Institute

• $14 million in relocation costs after selling the ADA’s Chicago headquarters

• Additional funding for state-level dental loss ratio campaigns, strategic communications, and severance packages

Each initiative had strategic intent. But taken together in a declining membership context, they drained reserves and raised questions about board oversight, budgeting, and execution.

What members are saying: Dr. Bob Dokhanchi’s open letter calling for a forensic audit raised quite a few eyebrows in online dentist forums. Dr. Howard Farran and others jumped in to question whether the ADA’s governance structure can support this kind of strategic transformation.

Noted concerns include the use of closed executive sessions, the speed of leadership turnover, and the decision to eliminate Life Member dues waivers while reserves were being spent at a historic pace.

Leadership turnover and next steps: Executive Director Dr. Raymond Cohlmia stepped down earlier this year. Interim leaders are now overseeing stabilization efforts, with the Board of Trustees directing priorities and operations. The organization has said that re-establishing its business foundation is its top priority.

But some of the path remains unclear. No new audit process has been introduced. No external advisory committee has been named. 

What it means for DSOs: The ADA’s recent challenges are only part of the story. Membership has been declining for years, dropping 1 to 2 percent annually, perhaps because younger and mid-career dentists are looking for something different. 

Traditional benefits like dues-based advocacy and quarterly journals potentially no longer carry the weight they once did. 

This is where DSOs have an opportunity. In an era of higher debts and more complex professional context, many early- and mid-career dentists could instead find community and support within their working environment, rather than an association, seeking out community, practical support, peer community, mentorship, and continuing education that feels relevant to their direct professional lives.

Looking ahead: The ADA is not collapsing. But it is resetting. That process will take time, clarity, and trust-building. Members will want transparency. State societies will demand a voice. 

The next chapter for the ADA depends on how openly it addresses its missteps, how effectively it listens, and how quickly it can deliver on the value it promises. DSOs, regulators, and clinicians will all be watching.