The accelerated rates of consolidation and technology adoption have been driving DSO growth, but strategies to future-proof an organization could be key to ensuring sustainable growth.
Haim Haviv, founder and CEO of New York City-based Hudson Dental, connected with Becker's to discuss trends shaping the DSO landscape and how to prepare for challenges in the upcoming years.
When asked about the growth trajectory of DSOs, Mr. Haviv said, "The trajectory is 100% upward and continuing. I have no doubt, put my name on it, that is where it's going."
He attributed the promising growth trajectory to the opportunities consolidation presents for vendor and insurance negotiations. After a long period of small DSOs being established, there has been an increase in consolidation, making it more difficult for smaller, independent practices to survive, he said.
However, more locations, staff and patients can translate into more power to negotiate better deals with vendors and reimbursement rates with insurance companies. As a result, consolidated DSOs can afford the latest dental equipment, expand operations and grow more quickly, Mr. Haviv said.
Technology adoption is the trend that has moved most rapidly over the past year, he said. Advancements such as 3D printing, digital scanning and AI-driven diagnostic tools have spearheaded a shift toward digital dentistry. He also said implementing new technology is Hudson Dental's most prominent tactic to future-proof its business.
"First and foremost is technology," Mr. Haviv said. "We invest in technology, and we invest in training for that technology. We make sure we are ahead of the curve, so when a patient walks in, they see a difference right away."
Aside from using new technological tools as a marketing strategy for patients, Mr. Haviv said it is an effective strategy for the recruitment and retention of staff. Providing the team with tools and resources that make their jobs more efficient helps combat potential workforce challenges.
Mr. Haviv said future-proofing a team also requires clear communication regarding the goals and opportunities an employee has with the organization, such as a performance metric, a subset of the practice or ownership of the company.
Still, he discussed how organizations with a strong team, the latest technology and successful vendor and insurance negotiations can face challenges multiple times a day.
"The biggest lesson I have learned over the past year and a half is the intensity of the ups and downs," he said. "You have to pick yourself up every single time, put everything aside and fix it."
Mr. Haviv will speak at Becker's The Future of Dentistry Roundtable on a keynote panel titled "The DSO Landscape: Predicting Trends and Preparing for Challenges." More than 250 attendees will come to the Hyatt Regency Chicago from Oct. 30 to Nov. 1 to hear more from Mr. Haviv and more than 100 healthcare leaders from across the country.