Scottsdale, Ariz.-based Imagen Dental Partners' approach to debt leveraging has helped the company stand out in the DSO field in terms of inorganic growth.
Imagen Dental Partners COO Andrew Jones recently spoke with Becker's about the DPO's growth this year, its strategies for expansion and the biggest challenges facing DSOs in 2024.
Editor's note: Responses were lightly edited for length and clarity.
Question: How would you describe Imagen Dental Partners growth this year?
Andrew Jones: We've had tremendous growth this year, both in our adding of new partners as well as our organic growth for the practices. We're equally focused on both, which I think differentiates us from some of the other groups that are out there.
Q: What strategies have worked well to support the company's growth?
AJ: Our focus for our partnership model depends on our practices growing organically. So doctors join Imagen to grow, and a core part of our ability to deliver that value proposition is to actually deliver the growth for the practices. I think part of the reason why we're continuing to grow the number of partner practices we have is because we are delivering that value proposition. We have partners who are excited to be here. We think our economic structure for partnership is something that's attractive to growth-oriented doctors, and we think we've been able to deliver on what we've promised.
Q: How does Imagen Dental Partners' model differ from its competitors?
AJ: I think our structure is different, and that structure drives our focus on organic growth. So we view organic growth as important as growing the number of practices we support, instead of that being two separate pillars.
Q: What are some of the top priorities for Imagen Dental Partners for the rest of 2024?
AJ: Our top priority is on educating our clinicians and teams so that they're able to deliver superior patient care, and patient retention. So number one would be educating our teams. Number two would be patient retention, so ensuring that our patients are engaged in the practice and are enjoying their experience at the practice and receiving great dentistry. Our third focus is ensuring we have the right support for our partners in areas like RCM where there are some challenges in the industry. So RCM systems, consolidation, data visibility — areas where, as a group, we can focus and bring greater resources than an independent dentist would have access to.
Q: What are some of the biggest challenges facing DSOs right now?
AJ: I think the two biggest challenges facing groups right now are the ability to drive organic growth and the ability to retain clinical talent, especially in the hygiene field.
A number of groups use debt to grow, and in environments where you're struggling to grow organically, it becomes more difficult to service that debt. So one of the differentiators for Imagen is we don't use debt in that way, and that allows us to be more aggressive in our ability to grow, which is [why] inorganic growth has not slowed down during this time period.
This has become a very difficult market, particularly for hygiene talent. There's a shortage of hygiene talent in the industry, which has been a challenge. This generation of associates coming out of school are much more competitive and have stronger preferences around their working environment and the economics of an associateship that I think are challenges for groups in general.
Q: What is Imagen Dental Partners doing to support provider retention?
AJ: We have a comprehensive approach to provider retention. That includes everything from having an economic opportunity for our providers that supports great clinical outcomes and great business outcomes, to evaluating opportunities for associates to become partners, to having hygienists have an elevated career path [for] becoming regional mentors and coaches, and a variety of other tactics that drive greater engagement and retention of those providers.
Q: What is your current economic outlook and how that will impact DSO activity in the near future?
AJ: I think dental is still under-penetrated in broader healthcare, so I think there's still a lot of opportunity for great operators to grow in this space. We do see the impact of macroeconomic trends ... There are a number of areas where you see some of the effects of the macroeconomic environment, but I think for people who are operating and doing the right thing by patients, you will find growth and you will find the ability to operate profitably.