Striking a deal that benefits all parties involved is the main objective of Cal Dental USA's operational model.
Cal Dental, which launched in 2015, was recently ranked as one of the fastest-growing companies by the Financial Times, experiencing an absolute growth rate of 96% and nearly doubling its revenue between 2019 and 2022.
The company, which supports more than 20 offices in California, has made several strategic moves this year, including adding its first orthodontic practice and adding two former NBA players as partners of its practices, Lamar Odom and Kendrick Perkins.
The DSO's vice president, James Jones, recently spoke with Becker's to discuss the company's growth and operational model.
Editor's note: Responses were lightly edited for clarity and length.
Question: How would you describe Cal Dental's growth since its launch?
James Jones: Cal Dental has experienced remarkable growth since its inception in 2015. Dr. John Kim, the CEO, had a vision that began with a small four-operatory practice in Bell and has expanded to 23 practices. I still remember the day we first saw the Bell practice. The office was in a shopping center on a rainy day, with a huge black gate blocking the front. Dr. Kim asked me, then a 19-year-old eager for an opportunity, "James, what do you think?" I said, "I love it." He replied, "Okay, we'll take it," and history was made that day. Our style has mainly been de novo practices, but we are transitioning to acquisitions with the ultimate goal of creating win-win situations for everyone involved.
Q: What sets your company apart from other DSOs?
JJ: We focus on serving the community rather than just maximizing profit. While profit is important, changing lives and providing opportunities to people who might not be given a chance according to society's standards is our main objective. Personally, I find it exciting to discover a diamond in the rough. Cal Dental USA has flourished by showing others they can succeed, regardless of their background.
Q: What are some of the core focuses of Cal Dental's operational model?
JJ: Our core focus is giving back opportunities and promoting from within. Many of our team members have been with us for years because we plant the seeds of our DSO model in our staff. They see the value in it, and we continually find ways to make work enjoyable.
Q: Cal Dental also recently expanded into orthodontics. What inspired the DSO to make this move?
JJ: We saw an opportunity with a practice that was doing well but hadn't tapped into the general dentistry market. By adding value to this practice, we hope to double its success. Having a centralized location like Los Angeles for referring ortho patients was a strategic move to meet a growing need.
Q: What are some of the factors you consider when deciding where to open a practice or who to affiliate with?
JJ: Several factors come into play, and some deals can take up to two years to close because we aim for win-win situations. One notable example is our acquisition of a practice in Van Nuys, Calif., in 2022. The previous owner, [who was] in his 70s, didn’t want to deal with day-to-day operations but didn’t want to leave dentistry either. We found a balance, and he has been employed with us since the acquisition, working two days a week and happily continuing to serve his patients.
Q: How does the company's partnerships with NBA players support its network? Are there plans for similar partnerships in the future?
JJ: Our partnerships with NBA players are a new but strategic initiative. I've always wanted to merge entertainment and sports with the dental industry, similar to Jay-Z and Snoop Dogg's venture capital endeavors. As someone who is half Black and Latino, I love showing kids that you don't need to be a basketball player or rapper to be cool. You can excel in business too. When we find partners like Lamar Odom who are committed to making a change in the community, we create win-win situations for everyone involved.
Q: What else does the company have planned for its growth this year?
JJ: This year, our main focus is on growing our internal infrastructure, adding more days to our existing practices and implementing more revenue recycle programs. With tighter insurance regulations and the aftermath of the largest healthcare hack the country has seen, these steps are crucial for our continued growth.
Q: What trends are you currently following in the dental and DSO fields?
JJ: I'm particularly interested in AI-generated call centers and AI integration for patient scheduling from start to finish.