Amassing locations is no longer the guaranteed path to growth it once was for dental organizations. Now the question is less about how fast a group can expand and more about whether a new location or partnership will actually pay off.
For some groups, the answer starts with the people. A new location only works if there’s a strong dentist to lead it and a team to support them. For others, it comes down to growth potential within a practice’s existing four walls, from physical space to add providers to a patient base with room to grow.
Market conditions are shaping those decisions, too. In some communities, retiring dentists are leaving patients with few options for care, creating openings for groups willing to step in. DSOs are also becoming more selective about which deals they pursue, according to a report from healthcare advisory firm TUSK Practice Sales.
Three dental leaders discussed what makes an expansion opportunity financially attractive in today’s environment at Becker’s 5th Annual Future of Dentistry Roundtable in Chicago.
Editor’s note: Responses were lightly edited for clarity and length.
Benjamin Lashley, DDS. Founder and CEO of Maple Park Dental Associates (North Platte, Neb.): In Western Nebraska, some of the locations we’ve added came about because the doctor was retiring and simply hanging it up. One community recently had four dentists. Three of them closed their doors, sold their practices and left. That leaves one doctor, and in my mind, that creates opportunity. The patients are still there and they still need dentistry done, even at the most basic level. A de novo or startup could work, but partnering with somebody in that situation seems to be a really good strategic move in our part of the world.
Amel Hassan, DDS. Practice Owner at Affordable Dentures & Implants (Winter Haven, Fla.): Today’s technology and systems might make expansion seem easy, and to some extent, they do. But the main thing I look at when deciding whether to expand is the team. Do I have the capacity to put a good doctor there and build a good team? In my view, that makes or breaks the deal. Being able to place a good doctor, retain them and mentor them to grow their skill level is the key factor.
Matt Hendrick. Co-founder of Elevate Dental Partners (Denver): We play in a slightly different part of the market. We do joint venture partnerships with established practices, and one of the biggest things we evaluate is the growth potential within the four walls of the practice. That’s changed a bit over the last few years as the industry has moved more toward organic growth. When we evaluate an opportunity, we ask: Is there enough capacity within the four walls, whether that’s physical space to add providers or a patient base to grow? Is the market recruitable? We want to see a real path to growing the practice before we enter a partnership.
