DSO consolidation, private equity and network expansion were among just a few topics dental leaders spoke to Becker's about in September.
What we heard this month:
How 1 CEO sees consolidation in dentistry evolving
Daniel German, DDS. Founder, CEO and Chief Orthodontist of Orthobrain: We believe that the unprecedented consolidation in dentistry will continue, including with specialty practices. One model gaining traction is offering patients the services needed through their lifecycle under one ownership umbrella.
Think of young kids seeing a pediatric dentist, followed by a hand-off to the orthodontist, a referral to the oral surgeon for wisdom teeth and then on to the general dentist. The [general practice dentist] can then refer to a periodontist and endodontist if needed.
How Allied OMS is flipping private equity in dentistry
Daniel Hosler. Co-founder and CEO Allied OMS (Southlake, Texas): It almost feels like an inside joke among private equity. Historically, dentistry was often viewed as healthcare light. It didn't have as much of a compliance risk. It didn't have as much of the stark anti-kickback statute risk that you typically find in traditional healthcare services opportunities. So I think that definitely attracted some people. We also view it as a highly recurring revenue model, so the frequency with which people tend to visit the dentist. When I grew up, it was once a year and then every nine months, and now I think the recommendations are every six months. A lot of people have dental benefits, many of whom don't fully utilize those benefits. So I think that definitely looked attractive to private equity.
Guardian Dentistry Partners on track to 140+ practices in 2022: Q&A with Dr. Hisham Barakat
Hisham Barakat, DDS. Chief Clinical Officer of Guardian Dentistry Partners (Miami): We're not into changing the way they do things. We're there to support and accomplish what they've been successful doing already. The best part about Guardian is that we basically share best practices. So if the partner has something that they've built that could benefit the other partners, we share it across and say, "Hey, our other partner in this region is doing it this way. Would you like to talk to them? Would you like to meet with them? Would you like to visit them and see how they've accomplished it?" And so on and so forth.
Is private equity hurting or benefiting dentistry? 10 dentists weigh in
Manny Chopra, DMD. Center for Dental Health (Cincinnati): The answer to that question is multifaceted. As more private equity money is funded in dental practices, a majority of those funds is directed to the continued growth of the DSO-model dental practice. My concern is, as these practices grow, will there be enough providers and staff to work at these practices? Further, as the DSO model grows with this private equity money, will there be a long-term concern for the retiring dentist in his/her ability to sell the dental practice to a younger dentist with substantial student loan debt? This may hinder their ability to purchase the retiring dentist's practice. It would be easier to go and work at a DSO practice that offers work-life balance and minimal added financial risk.