Consolidation in dentistry has been heavily driven by DSOs, leading to the emergence of new models in private practice, according to multiple industry leaders.
The leaders featured in this article are all speaking at Becker's 2024 dental conferences. This includes our Spring Future of Dentistry Roundtable, which is set for June 19-21 at the Swissotel in Chicago, and the Fall Future of Dentistry Roundtable, which is set for Oct. 30 to Nov. 1 at the Hyatt Regency in Chicago.
If you work at a DSO or dental practice and would like to be considered as a speaker, please contact Randi Haseman at rhaseman@beckershealthcare.com.
Note: Responses were lightly edited for clarity and length.
Question: What impact have DSOs had on the dental industry, and how will they affect the dental space going forward?
Richard Hall. President and CEO of U.S. Oral Surgery Management (Irving, Texas): DSOs have had a profound impact on the field of dentistry and will continue to do so. The driving forces behind the evolution of DSOs remain strong and are getting stronger. Relieving dentists and specialists of the business responsibilities of being an entrepreneurial doctor, need for efficiency and cost controls, quality care delivery and patient experience and rising student loan debt are all mounting. The private practice of dentistry is becoming more complex, and the consumer is becoming more informed, creating a more competitive market than ever before. DSOs will continue to consolidate the market, creating a new model for private practice. The historical private practice model is no longer attractive to many entering the profession. DSOs offer professional business services at scale that can help with staffing, procurement, revenue cycle management and payer issues, and even regulatory direction through professional associations, like the Association of Dental Support Organizations, working closely with other professional associations, like the American Dental Association, to protect and advance the profession.
Deric Ikuta, DDS. Dentist of Ikuta Dental Health Center (Reedley, Calif.): DSOs have had a huge impact in the dental field. One of their biggest impacts is driving consolidation of the dental industry. Cost of ownership has been increasing because of labor costs, buying new technology, equipment/supply costs and insurance reimbursements not keeping up with inflation. Combine that with the debt load of new graduates, the percentage of dentists that own a practice is declining every year. It is becoming harder to sustain a solo practice, and when they go to sell, oftentimes a DSO will give the most compelling offer and consolidate their practice into their portfolio.