A Dentist’s Premonition: The Changing Face of Dentistry
In the pursuit of a dental career, aspiring students are often required to shadow experienced dentists to gain real-world insights. For one student, advice from a seasoned rural dentist in Cache Valley, Utah, foretold a significant shift in the industry. The dentist warned of a future where private ownership would dwindle, giving way to the rise of corporate entities in dentistry—a prediction that has since become a reality with the proliferation of Dental Service Organizations (DSOs).
What is a DSO?
DSOs are companies that partner with dental practices to manage their non-clinical operations, such as administration, marketing, and business functions. This partnership allows dentists to focus on their clinical expertise while the DSO handles the business side, a proposition that has gained traction due to the administrative challenges and financial pressures faced by dental practitioners.
The DSO Pitch: A Solution to Administrative Burdens
Many dentists are not fond of the business aspects of running a practice, from handling HR and payroll to marketing and billing. DSOs offer a solution by taking over these administrative tasks, promising a more streamlined operation and allowing dentists to concentrate on patient care.
The Rise of Private Equity in Dentistry
DSOs are often backed by private equity, providing an alternative to traditional bank loans for practice ownership transitions. This approach offers immediate financial benefits and relief from business-related stress for the selling dentist, who can continue to work in a familiar environment, albeit as an employee.
The Growing Influence of DSOs
The presence of DSOs in the dental industry is expanding rapidly. Estimates suggest that between 13%-23% of dentists are affiliated with a DSO, a number that is expected to increase significantly in the coming years. With a market size projected to reach hundreds of billions by 2030, DSOs are becoming an integral part of the dental landscape.
DSOs’ Appeal Across Career Stages
DSOs attract dentists at various stages of their careers for different reasons. Seasoned practitioners may see DSOs as a way to simplify their professional lives and secure their retirement finances. Mid-career dentists might be drawn to the immediate financial relief and reduced administrative workload. Young dentists, facing substantial educational debt and a competitive housing market, often view DSOs as a stable entry point into the profession with opportunities for further career development.
DSO Structures and Agreements
There are several types of arrangements between dentists and DSOs, ranging from full practice sales to joint ventures and affiliations. Each structure offers its own set of benefits and considerations, tailored to the dentist’s goals and the stage of their career.
The Allure and Concerns of DSOs
While DSOs offer many advantages, such as financial incentives and a focus on clinical work, they are not without criticism. Concerns include changes to clinical materials and equipment, altered communication with patients, shifts in benefits for staff, and potential loss of control over decision-making. These issues highlight the need for careful consideration and thorough understanding of DSO contracts.
The Future of Dentistry: Embracing or Resisting DSOs?
As the dental industry evolves, the debate over the role of DSOs continues. With parallels drawn to the medical field, where private practices have largely been replaced by corporate entities, the dental profession faces a similar trajectory. The experiences shared by dentists regarding their interactions with DSOs will shape the dialogue and inform decisions for the next generation of dental professionals.
Join the Conversation: Share Your DSO Experiences
This discussion invites dental professionals to share their experiences with DSOs, whether positive, negative, or neutral, to foster a comprehensive understanding of their impact on the field. As the industry navigates these changes, collective insights will be invaluable in determining the future of dental practice.