Irvine, Calif.-based Pacific Dental Services plans to surpass 1,000 by the end of 2023, according to CEO and Founder Stephen Thorne IV.
The DSO has opened more than a dozen practices so far this year and currently has 940 locations in the U.S.
Mr. Thorne recently spoke with Becker's about the company's growth and what the DSO has planned for the rest of the year.
Editor's note: Responses were lightly edited for clarity and length.
Question: How would you describe Pacific Dental Services' growth this year?
Stephen Thorne IV: I normally try to stay humble, but I have to say, this year has been phenomenal for PDS. It's been the best year in the history of the company, and that's saying a lot after almost 30 years of business. Patient demand is strong. We're having the highest number of opportunities per clinician per day. Although we are still experiencing a shortage of dental assistants, dental hygienists, and to some extent, dentists, our overall workforce has significantly improved compared to where we were a year ago.
Q: What do you attribute to the company's recent growth and success?
ST: As you may know, over the past couple of years, we underwent a significant platform upgrade, transitioning from a traditional dental-only practice management system to a true electronic health record, Epic. Epic is so much more than just an electronic health record ― it's a whole change in how we operate. After completing the implementation of Epic into our dental practices in July 2022, our teams have been fine-tuning operational best practices which has greatly contributed to our successful year. In addition, we've been focused on getting back to the core basics: maintaining a patient-centric mindset and ensuring excellent service to our clinical teams.
Q: Do you plan on reaching 1,000 offices this year?
ST: Yes, we plan to surpass 1,000 offices by the end of this year. Despite the lingering challenges in specific areas due to the pandemic, particularly with supply chain issues, we remain on track.
Q: How is Pacific Dental Services handling staffing shortages?
ST: Just like the rest of the dental industry, we're not immune to the major staffing shortages for dental hygienists and dental assistants that are impacting practice capacity nationwide. It is essential that we address this issue, particularly in the field of dental assisting, by bringing together organized dentistry and the broader dental community to promote the profession proactively. Failing to do so could pose significant challenges for our industry in the future.
One of our key initiatives at PDS has been investing in the education and training of dental assistants. Over a three-year period, we implemented a comprehensive training program and more competitive compensation to attract and retain highly skilled professionals. Our primary goal is to raise the visibility and status of dental assisting. Dental assisting is a demanding yet rewarding occupation on par with medical assisting and nursing. It is through our collective efforts that we can elevate the professional stature of dental assisting and secure a brighter future for our industry.
Q: Are there any other keys to success for running such a large organization?
ST: Our success stems from a few key factors. First, we focused on taking care of our team members during the pandemic, and I think that resonated with them. It's one of the reasons we've been successful in bringing our workforce back into the office compared to other companies. We place a strong emphasis on our culture of service, whether it's serving each other within the organization, our clinicians, patients or the communities we're a part of. That culture of service has not only benefited us, but also the greater good.
Another key aspect is our structure. The DSO space has become highly competitive, with a massive increase in the number of dental groups out there. When I first started, there were only about 10 large dental groups, but estimates suggest there are now about 4,000. It's a tough market, but we've found our niche and stayed true to it. We've remained focused and committed, and I believe that's what has set us apart and led to our success.
Q: What do you think about the state of the U.S. economy now and how it will affect the organization?
ST: There's a lot of talk in the news about slower growth across the U.S. economy and other negative predictions. It can make you feel like things are going downhill. But when you actually look at how people are out and staying busy, it doesn't seem as bad as they make it out to be. While there are certainly differences compared to the pre-pandemic era, it's not massively different. There are subtle changes in how people approach life and work-life harmony. As long as we stay focused on serving our patients and adapting to these changes, we'll be just fine. Our organization has a solid foundation with around two million continuing care patients, who, on average, will spend approximately $20,000 over 20 years on various dental services. The recurring revenue model in dentistry is strong, which provides stability for our organization.
Q: What educational initiatives will Pacific Dental Services focus on this year?
ST: We're expanding our college advancement program which has been very successful so far. The program offers eligible dental assistants, operations managers and healthcare coordinators 100 percent upfront college tuition coverage to pursue an undergraduate degree of their choice from ASU Online. We initially launched the program in 2021 with a limited group size to gauge its success, and it exceeded our expectations. We saw a remarkable 98 percent retention rate among the participating team members, and there's even a waiting list of people eager to join.
We're also supporting the growth of the PDS Foundation's scholarship program for dental assisting. It's an initiative that provides financial support to aspiring dental assistants, helping them pursue their education and establish a successful career in the field.
Q: What other trends in the dental industry are you following?
ST: One of the trends I'm closely following is the shift towards a more predictive and preventive approach in dentistry. There is growing awareness about the Mouth-Body Connection, where people are realizing that oral health is closely linked to overall health. CMS's inclusion of medically necessary dental services in Medicare plans and the growing pull from Medicare Advantage plans demonstrate the increasing recognition of the importance of oral health in overall healthcare. I call this the convergence era of dentistry, where the medical and dental fields are collaborating more closely to provide better, more efficient care.
With the tools and technologies available today, dentists can be more proactive in identifying cancers and contribute to reducing preterm and low-weight births by providing comprehensive care for women planning to conceive or those who are pregnant. They can also support patients with diabetes in managing their health more effectively. While improving dentition will always be important, dentists today have a massive opportunity to play a vital role in the primary healthcare space by being more predictive and preventive in their approach, opening up exciting possibilities for the future.
Another significant development on the horizon is the integration of salivary diagnostics in dentistry, which holds immense potential. I predict that within the next decade, it will become standard practice for every dentist in America to incorporate salivary diagnostics to gain a deeper understanding of their patients' overall health.
It's such an exciting time to be in dentistry. I've been in the field for 35 years, and I believe it's one of the best times ever to be in this profession. We need more talented people to join us, so if anyone outside of dentistry is considering a career in this field, I encourage them to come on board. Let's have fun pushing each other and advancing oral healthcare together.