1. Will there be continued growth at the current rate in the future for Dental Support Organizations (DSOs)?
We don’t see any change in the current macro-dynamics that would indicate DSOs won’t continue to grow. In fact, we believe that consolidation within dentistry will accelerate.
2. Is there a market or region you haven't tapped into that excites you the most? If so, where are you looking to expand?
We receive regular inquiries from dentists throughout the United States, and we remain focused on the United States. We do receive a remarkable number of inquiries from dentists and dental groups outside the United States, requesting that we expand our reach and services into those countries. At present, and for the foreseeable future, however, we’re seeing such significant growth opportunities and demand within the U.S. that it makes international expansion unlikely at this time. We’re already in 21 states and have identified several new markets to target.
3. What has been most successful for PDS in terms of expanding? Acquisitions? De novo practices?
Our growth is based on an organic de novo growth strategy. We expand our services when a dentist asks us for help in opening a new practice. For this reason, as an enterprise, the most important capital we need to continue to build is our trust capital with the supported owner dentists, as well as the associate dentists, in our network. Most associate dentists look to one day open their own practice; we want it to be a PDS-supported dental practice. We need to continue to earn their trust so that when they’re ready to own their own practices, they’ll want to do it with Pacific Dental Services.
4. How do recent dental school graduates respond to DSOs?
We have seen a significant dental school graduate movement towards DSOs. In fact, we continue to hear how dental students are seeking mentorship, access to the latest dental and medical technologies, and a path to ownership as key areas of focus as they evaluate their opportunities upon graduation. There are a significant number, if not a majority in some cases, of dental school graduates who are choosing to start their careers in practices supported by DSOs. In fact, PDS-supported owner dentists have onboarded more than 400 recent dental graduates into their practices this summer alone. This is not only an indication of what dental students are looking for, but it also demonstrates the massive commitment and investment the PDS-supported owner dentists are making with their new associates.
5. What strategies are you using to attract recent dental students?
We recognize that dental students are evaluating more than the general reputation of a DSO. They also want to know more about the owner dentist to see if they align with the practice’s clinical culture. This is something we encourage. We are pleased to help owner dentists “match” with the right associate dentists. This clinical relationship is vital to each supported practice and we work hard to facilitate this clinical mentorship. Since its inception in 1994, PDS has been committed to fostering a culture of Clinicians Leading Clinicians in Clinical Excellence®. This commitment is just as important for us now as it was 25 years ago.
6. Is reimbursement getting tougher or easier for dentists?
In regards to reimbursement getting tougher, we have not found that to be the case. To the contrary, we have found the largest payors continue to move towards a more partnering relationship with us. This ultimately reduces inefficiencies in the reimbursement system, which will positively impact not only the payors and practices, but most importantly, the patients. There’s still much work to do here, but we see reasons for optimism that the reimbursement process will be more efficient in the future.
7. How has the introduction of private equity changed dentistry?
While we have not ourselves sought the need for external investment, private equity has brought significant capital to a number of DSOs and other key stakeholders in the dental industry. The best private equity groups also bring a significant amount of intellectual capital and general business expertise, which has also helped a number of DSOs.
8. How do you get patients into your doors? And how do you keep them coming back?
PDS-supported dental practices offer a patient-centric approach with modern dentistry, comprehensive oral health care, and proven technology. Innovative technologies such as CEREC® CAD/CAM same-day dentistry, Cone Beam Computed Tomography (CBCT), digital X-rays, laser, online scheduling, and the VELscope® Enhanced Oral Assessment System provide patients with the convenience they need and want. In addition, PDS-supported practices offer their patients the convenience of integrated specialties under one roof.
PDS’ primary purpose is to support clinicians so they can focus on providing oral health care to their patients to keep them healthier. This includes educating patients about the link between oral health and whole-body health – what PDS and its supported practices call the Mouth-Body Connection®. Research shows that harmful bacteria and inflammation in the mouth can indicate and even cause systemic conditions throughout the body. Maladies of the mouth, including periodontal disease, may be linked with other medical conditions including oral cancer, cardiovascular disease, diabetes, Alzheimer’s disease, rheumatoid arthritis, and more. Patients at PDS-supported practices appreciate this whole-body, patient-centric approach.
9. Who/what is your biggest competitor?
Currently there is no DSO that has achieved sufficient market share to truly inhibit the growth of another. Where competition expresses itself on a local level, it’s usually in competition for talent and perhaps a real estate location. But the real challenge to our growth continues to be internal. We’re focused on our ability to grow without diluting our promise of operational excellence for each individual owner dentist.
We don’t see any change in the current macro-dynamics that would indicate DSOs won’t continue to grow. In fact, we believe that consolidation within dentistry will accelerate.
2. Is there a market or region you haven't tapped into that excites you the most? If so, where are you looking to expand?
We receive regular inquiries from dentists throughout the United States, and we remain focused on the United States. We do receive a remarkable number of inquiries from dentists and dental groups outside the United States, requesting that we expand our reach and services into those countries. At present, and for the foreseeable future, however, we’re seeing such significant growth opportunities and demand within the U.S. that it makes international expansion unlikely at this time. We’re already in 21 states and have identified several new markets to target.
3. What has been most successful for PDS in terms of expanding? Acquisitions? De novo practices?
Our growth is based on an organic de novo growth strategy. We expand our services when a dentist asks us for help in opening a new practice. For this reason, as an enterprise, the most important capital we need to continue to build is our trust capital with the supported owner dentists, as well as the associate dentists, in our network. Most associate dentists look to one day open their own practice; we want it to be a PDS-supported dental practice. We need to continue to earn their trust so that when they’re ready to own their own practices, they’ll want to do it with Pacific Dental Services.
4. How do recent dental school graduates respond to DSOs?
We have seen a significant dental school graduate movement towards DSOs. In fact, we continue to hear how dental students are seeking mentorship, access to the latest dental and medical technologies, and a path to ownership as key areas of focus as they evaluate their opportunities upon graduation. There are a significant number, if not a majority in some cases, of dental school graduates who are choosing to start their careers in practices supported by DSOs. In fact, PDS-supported owner dentists have onboarded more than 400 recent dental graduates into their practices this summer alone. This is not only an indication of what dental students are looking for, but it also demonstrates the massive commitment and investment the PDS-supported owner dentists are making with their new associates.
5. What strategies are you using to attract recent dental students?
We recognize that dental students are evaluating more than the general reputation of a DSO. They also want to know more about the owner dentist to see if they align with the practice’s clinical culture. This is something we encourage. We are pleased to help owner dentists “match” with the right associate dentists. This clinical relationship is vital to each supported practice and we work hard to facilitate this clinical mentorship. Since its inception in 1994, PDS has been committed to fostering a culture of Clinicians Leading Clinicians in Clinical Excellence®. This commitment is just as important for us now as it was 25 years ago.
6. Is reimbursement getting tougher or easier for dentists?
In regards to reimbursement getting tougher, we have not found that to be the case. To the contrary, we have found the largest payors continue to move towards a more partnering relationship with us. This ultimately reduces inefficiencies in the reimbursement system, which will positively impact not only the payors and practices, but most importantly, the patients. There’s still much work to do here, but we see reasons for optimism that the reimbursement process will be more efficient in the future.
7. How has the introduction of private equity changed dentistry?
While we have not ourselves sought the need for external investment, private equity has brought significant capital to a number of DSOs and other key stakeholders in the dental industry. The best private equity groups also bring a significant amount of intellectual capital and general business expertise, which has also helped a number of DSOs.
8. How do you get patients into your doors? And how do you keep them coming back?
PDS-supported dental practices offer a patient-centric approach with modern dentistry, comprehensive oral health care, and proven technology. Innovative technologies such as CEREC® CAD/CAM same-day dentistry, Cone Beam Computed Tomography (CBCT), digital X-rays, laser, online scheduling, and the VELscope® Enhanced Oral Assessment System provide patients with the convenience they need and want. In addition, PDS-supported practices offer their patients the convenience of integrated specialties under one roof.
PDS’ primary purpose is to support clinicians so they can focus on providing oral health care to their patients to keep them healthier. This includes educating patients about the link between oral health and whole-body health – what PDS and its supported practices call the Mouth-Body Connection®. Research shows that harmful bacteria and inflammation in the mouth can indicate and even cause systemic conditions throughout the body. Maladies of the mouth, including periodontal disease, may be linked with other medical conditions including oral cancer, cardiovascular disease, diabetes, Alzheimer’s disease, rheumatoid arthritis, and more. Patients at PDS-supported practices appreciate this whole-body, patient-centric approach.
9. Who/what is your biggest competitor?
Currently there is no DSO that has achieved sufficient market share to truly inhibit the growth of another. Where competition expresses itself on a local level, it’s usually in competition for talent and perhaps a real estate location. But the real challenge to our growth continues to be internal. We’re focused on our ability to grow without diluting our promise of operational excellence for each individual owner dentist.