Mar 01, 2023
With Dental Service Organizations (DSOs) accounting for nearly 25% of United Concordia Dental’s network1, their continuous growth is changing the way United Concordia – and you -- do business. It’s important to know that DSOs will continue to increase their market share in the dental space, making them a great partner for United Concordia and a great advocate for you and your clients. That’s why they were – to the best of their knowledge – the first dental solutions partner to have a dedicated team to manage DSO relationships. The reason is two-fold: it gives United Concordia an advantage over their competitors and provides you with direct line of sight into industry trends.
In this Q&A, Dawn Swanson, director, Dental Network Services, United Concordia Dental, discusses the importance of DSOs and how they are changing the dental industry.
Q: Are DSOs here to stay?
A: Today, 50% of all dental practices are currently owned by a DSO, and that number is projected to grow to about 70% of practices by 20352.
Q: How are DSOs attracting providers?
A: Given the increasing demand for dental professionals in today’s market, DSOs need to position themselves in a way that distinguishes them from their competitors and engages with prospective dentists on a personal level as early in the recruiting process as possible. Each DSO has its own culture and unique business model, which allows them to capitalize on the benefits they specifically offer to new affiliates and providers. This includes paths to ownership for dedicated and committed dentists; benefits that offer more comprehensive and customizable packages; debt repayment help for newly graduated dentists in exchange for a predetermined length of service; and advancement opportunities for providers interested in expanding their skillsets beyond the operatory. They are also able to offer flexible scheduling options that may be more beneficial for members, such as evening and weekend appointments.
Q: What general business models exist for DSOs?
A: When it comes to DSOs, there is no one size fits all. They can be run by a national or regional management group or an individual dentist. The DSO may have a structured C-suite hierarchy that includes a CEO, CFO, COO, CIO, and CDO; or it may have a single dentist-owner overseeing several practices and practice managers in each location. DSO managed practices affiliates range from supplying general dentistry in a traditional dental practice setting to specialty treatment, such as pediatrics, orthodontics, endodontics and periodontics.3
Q: What is the largest DSO?
A: Headquartered in Illinois, Heartland Dental is the nation's largest dental service organization, supporting more than 2,400 doctors in 1,600 offices across 38 states. Other large DSOs include The Aspen Group, Pacific Dental Services and Smile Brands.4
Q: Why are DSOs gaining so much momentum?
A: In recent years, the DSO model has continued to evolve and grow in the market because it offers substantial benefits for providers and patients. DSOs contract with dental practices to provide non-clinical business management and support – which allows dentists to focus solely on patient care with the support of professional office management. Additionally, these models are especially attractive to recent graduates that may have accumulated up to $300k in student loans5 and are reluctant to take on the added debt needed to own a dental business. By relieving some of the financial and administrative pressure of practice management, DSOs help emerging dentists get back on their feet and hit the ground running.
Sources
1. United Concordia Dental internal research and reports, 02/23.
2. SKYGEN's Industry Predictions for 2023 and Beyond; Craig Kasten; SKYGEN; 2022.
3. Top 10 DSOS: The largest companies keep growing; Melissa Busch; DrBicuspid.com; 2022.
4. An introduction to alternative DSO structures; Victoria Bahrami, JD & Brian A. Colao; Dental Economics; 2019.
5. Average Dental School Debt; Education Data Initiative. Retrieved 2023.
