Tax Reform, Interest Rates, and Market Forces: What They
Could Mean for Dental, Medical, and Specialty Practice
Values
Two recent developments — the passage of the One Big Beautiful Bill Act (OBBBA) and the
Federal Reserve’s current interest rate policy — could influence the market for dental, medical,
MedSpa, freestanding emergency centers (FEC), plastic surgery practices, dermatology
practices, and other specialty healthcare practices in the years ahead. While these aren’t signals
to sell immediately, they’re important for practice owners to understand as part of long-term
planning.
Tax Law Changes That Could Affect Practice Owners
OBBBA introduces sweeping updates to the tax code for individuals and businesses. For
business owners, notable provisions include:
- Immediate expensing for domestic R&D
- Permanent 100% bonus depreciation for qualified business property
- Increased Section 179 limits for capital investments
- Higher capital gains exemptions for qualified small business stock (up to $15M)
These provisions could help practice owners — including those in dentistry, MedSpas, FECs,
dermatology, and surgical specialties — retain more proceeds from a sale, reinvest more
efficiently, and plan more strategically for growth or exit.
The Fed’s Current Position and Market Impact
The Federal Reserve’s benchmark rate is 4.25%–4.50%, unchanged for five consecutive
meetings. At the July 29–30, 2025 meeting, two Fed Governors dissented in favor of a rate cut
— the first such occurrence in over 30 years. Key reasons for holding steady include:
- Inflation above target: June’s annual inflation was 2.7%, with core inflation at 2.9%.
- Tariff concerns: Potential price pass-through from ongoing trade tariffs could add
upward pressure on costs. - Cautious outlook: The Fed is taking a “wait and see” approach, monitoring inflation, the
labor market, and GDP growth before adjusting rates.
Closing Summary
The intersection of new tax legislation and the Federal Reserve’s monetary policy presents both challenges and opportunities for healthcare practice owners. The OBBBA’s favorable tax provisions offer an immediate chance to improve after-tax proceeds from sales, accelerate reinvestment through bonus depreciation and Section 179 enhancements, and maximize the value of qualified small business stock. At the same time, the Fed’s steady rate policy and cautious stance underscore the importance of strategic planning, as borrowing costs remain elevated and inflationary pressures linger.
For practice owners in dentistry, MedSpas, dermatology, surgical specialties, and other healthcare segments, these developments are not short-term sell signals but critical elements of long-term strategy. By understanding how tax incentives and interest rate conditions may shape valuations, financing, and reinvestment options, owners can position themselves to capture opportunities, protect enterprise value, and time their growth or exit more effectively.
In short, the market environment is shifting — and proactive, informed planning today will help ensure practices remain resilient and profitable in the years ahead.
– Tommy Newton, Principal at Xite Practice Sales
About Xite
Xite Company is a national leader in healthcare real estate and practice sales, boasting an established reputation committed exclusively to representing doctors since 2013. With a transaction volume surpassing $1 billion, our expertise spans across practice sales, start-ups, brokerage, demographics, development, and project management. We are committed to empowering healthcare professionals, helping them flourish as entrepreneurs and practice owners. Leveraging evidence-based data and profound industry knowledge, our dedicated team ensures a seamless journey in all real estate endeavors, from office space selection and complex construction projects to strategic practice transitions, maximizing value every step of the way.
For more information, visit https://xiteco.com