As DSOs continuously look for ways to expand and grow, a new set of dental practices has started to stand out — speciality practices.
Entering the market for specialty practices, including orthodontics and pediatric dentistry, can create new growth opportunities for DSOs.
By adding specialty practices, DSOs can bring in new patient bases and diversify their revenue streams through cross-referrals.
"DSOs capable of integrating general dental and specialty care enhance their value to patients, are able to provide more comprehensive care and further solidify their brand," said Barry Lyon, DDS, a chief dental officer for the division of orthodontics and pediatric dentistry at Sarasota, Fla.-based DSO Dental Care Alliance.
Some DSOs, like Bend, Ore.-based Salt Dental Collective, are focused solely on partnering and acquiring specialty practices. Salt Dental was founded in 2019 with just four initial locations and now has more than 50 pediatric dentistry and orthodontic practices across five states.
The company is now also looking to expand into another dental specialty, oral surgery, while racing toward 100 locations.
"We're just now starting to look at oral surgery in a real way," said Salt Dental Collective CEO Dylan Bates.
Southlake, Texas-based Phase 1 Equity was created in 2022 to help orthodontists and pediatric dentists boost revenue and improve practice operations. The company was formed through a partnership between DuneGlass Capital and Williams Orthodontics and Kohrs Orthodontics, two Colorado-based practices.
Orthodontics and pediatric dentistry are two specialties that the company feels fit together well and will continue to see side-by-side growth. While the company is still in its infancy, they see an exponential growth opportunity.
"As we started the company, we've grown to three practices in two different states. We've got several different [letters of intent] out there, so we expect to double that over the next year or so and continue to grow past that," said Phase 1 Equity CEO Kristen Cusack.
While general dentistry practices are here to stay, specialty practices present DSOs with a unique opportunity for expansion.