In a recent Dentistry Uncovered podcast, Howard Farran, CEO of the Chicago-based Cavity Dental Group spoke with Becker’s Healthcare publisher Scott Becker about trends in the dentistry and the rise of dental service organizations.
One of the forces that has sparked the rise of DSOs is that equipment is so expensive and private practice dentists cannot always afford the necessary equipment. Additionally, dental offices have become more difficult to manage, leading to the entrance of DSOs.
In current times, private equity holds huge dollars that can be doled out the dental practices. When these private equity companies invest in a DSO, the two grow together. When they look to exit from the DSO, rather than put in the public market, these private equity companies look to sell the DSO to another private equity organization.
To listen to the complete podcast, click here.