When DSOs are looking to expand their network of dental practices, they typically have two main options: partnering with an existing dentist and practice, or constructing a de novo location.
Boca Raton, Fla.-based Sage Dental, which supports more than 130 practices, employs a strategy that combines both teaming up with existing practices and building new ones.
For its recent expansions into Tennessee and Alabama, its third and fourth states respectively, de novos have been crucial.
When entering a new state, de novos can be an effective strategy to build up your initial presence, but there are other factors outside of building the practice itself, according to Jim Mizouni, Sage Dental's senior vice president and chief development officer.
"The key to successfully entering a new market, especially with de novos, is establishing your brand as quickly as possible," Mr. Mizouni told Becker's about the recent Alabama expansion. "This involves recruiting outstanding team members, as well as clearly articulating your brand differentiation to potential patients through both paid and non-paid marketing channels."
The process of adding a de novo location is different from partnering with or acquiring an existing practice. A de novo practice can give you a foothold into a new market, which brings you closer to other practices in said market.
"We aim to build new state-of-the-art practices in premier retail locations as part of our brand definition, while also acquiring outstanding practices with strong clinical leaders that are excellent cultural fits," said Mr. Mizouni. "As constructing a new de novo practice takes time, we typically begin by identifying and building new locations, then acquire strong, established practices along the way as the opportunities become available."
Sage's combination of both partnerships and de novo practices are one of the things that sets them apart from other DSOs and gives them an edge in the industry.
"Very few DSOs combine a strong common brand with a hybrid de novo and acquisition strategy like Sage Dental," said Mr. Mizouni. "We also build our practices to be fully operational across all general, hygiene and specialty lines, offering a comprehensive range of dental services under one roof for every patient. This allows us to provide a complete specialty dental business fully integrated with our general dentistry services at every location."