DSO consolidation, practice profitability and payer relations are just a few of the topics dental execs and professionals spoke with Becker's about in February.
What we heard this month:
The impact of consolidation on dentistry: 16 dental professionals weigh in
Deborah Brown, DMD. CEO of My Community Dental Centers (Petoskey, Mich.): Consolidation has led to larger dental practices with more dentists working together. This trend works well in areas where there are high rates of dentists, but in rural areas it can cause an access to care issue. When private practices close and the owner joins a group practice outside of the area, that leaves a gap in care. Consolidation will create more purchasing power for supplies and a greater ability to hire dentists by offering enhanced benefits packages and the latest technology. There are definitely pros and cons to consolidation, but it appears this trend is likely to continue into the future of dentistry.
3 investments needed in dentistry: Dr. Ryan Holmes
Ryan Holmes, DDS. Director of Dental Affairs at Bright Direction Dental (Chicago): If I could change one thing about dentistry, it would be to make it more accessible and affordable for everyone. I think that by utilizing technology and data-driven insights, dentists can reduce the cost of care and provide more efficient and personalized services to their patients. Additionally, I would like to see more investment into preventative care, education and accessibility to help reduce the prevalence of oral health issues.
Consolidation trends 17 dentists and DSO executives are following
Jeffrey Carter, MD, DMD. President of US Dental Surgery Network (Nashville, Tenn.): I follow with interest the parallel growth of the general dental DSOs and the new wave of specialty roll-ups. The former is a business to consumer (B2C) model while the latter is not quite identical. As the ecosystem continues to mature, there is likely to be a convergence of the general practice and specialty platforms. Both companies need to find ways to expand market share and same store sales. The number of specialty practices for acquisition is more finite than the general practice opportunities. Ultimately the B2C companies will realize that their long-term success is based on their relationship with the customers that are controlled by the larger general practice DSOs. At this point there is likely to be more consolidation of the specialty services into larger multispecialty platforms.
The factors decreasing profitability at dental practices
Brad Rand, DDS. Watermark Dental (Brewer, Maine): Since 2020, supply costs have increased at significantly higher than normal rates. Energy costs, particularly of electricity and natural gas, have increased dramatically. This, coupled with workforce shortages, has driven up operating costs for all dental providers. Dentists who are in network with insurances and are unable to increase fees to match their increased costs have seen a dramatic reduction in profitability.
The most overrated trends in dentistry
Brant Herman. Founder and CEO of MouthWatch: We don't know that it's a trend, but something we have seen as a standard practice within many dental groups is an idea that all postoperative appointments and treatment plan presentations must take place in the office setting. We have seen great success with programs implementing teledentistry that have been able to shift many of these appointments and consultations to virtual, freeing up chair time and provider time while maintaining clinical quality and exceeding patient expectations. We believe that these practical examples of ways to incorporate virtual care into practices can provide a lasting solution to efficiencies that help offset staffing challenges while also meeting provider expectations for life-work balance.
How MB2 Dental is continuing growth and expansion: Q&A with Dr. Chris Villanueva
Chris Villanueva, DMD, Founder and CEO of MB2 Dental (Carrollton, Texas): We're always thinking about where the profession is at any given time. I think one of the biggest things that we've done recently was developing our own app that a lot of doctors download and can see what we have to offer and what our vision is at their leisure, and I don't think any other group has that. We developed that last year and I think it has been very helpful in streamlining the process for us. Last year we looked at more than 2,500 submissions for review and we partnered with about 100 of them. Being efficient in determining whether or not we would be good partners is the key to scaling a business of our size.
What 2 dentists want from payers in 2023
Charles Schlesinger, DDS. Comfortable Dentistry 4U (Albuquerque, N.M.): I would say I am just looking for fair compensation for the work I do. I would like to see an end to downgrading reimbursements and fees which are commensurate to what they should be in 2023. This goes for all insurance companies across the board. I use the best materials and give a service which has a very standard of care. Also, as one of very few practitioners in my area that treat patients on state aid, it would be nice to be paid an amount that allows for profitability for my offices and will continue to allow me to treat these underserved patients. If things continue to trend the way they are now, I will be just another dentist who will withdraw from these plans ultimately leaving the patients with very few options.
What 1 specialty dental group is focused on in 2023
Nate Mote. COO of Specialty1 Partners (Houston): As I’d expect from most DSOs, Specialty1 Partners is focused on industry trends like competition for limited dental staff, technology to improve patient experience and office workflows, dynamics with healthcare payers and ways to motivate and incentivize the current and coming generation of doctors.
As a specialty-focused DSO, we’re keeping a close eye on trends around relationships across specialties and with general dentistry. We’re closely watching the evolution of the space, especially the emergence of larger multispecialty centers (versus more traditional, single-specialty practices).
Changes 5 dentists plan to make at their practices in 2023
Bruce Smoler, DDS. Smoler Smiles Family & Implant Dentistry (Westland, Mich.): We are planning on continuing our investment in dental technology in 2023. We have doubled our revenues year over year, for the past few years due to our investment in dental technology as Dental IT. We have been able to lower our prices on some of our robotic implant services since we have become so advanced in our delivery of our services. To this point, in 2023, we are looking to do so again. By investing in expanding our physical structure, by expanding our staff as well as higher volume discounts, we intend to grow our business 30 to 50 percent in 2023.
How the largest OSO plans to grow in 2023
J. Hedrick. CEO of Smile Doctors (Dallas): It is all about maintaining a [patient-centric] focus. We talk a lot about meeting our patients where they are. That's leaning into the type of treatment modality that's best for them and also fits their lifestyle. Whether that's remote monitoring with dental monitoring or aligners or fixed appliances, what is the best thing to make sure we are meeting patients where they are and providing the best possible clinical care we can, which requires us to provide the best possible support to our doctors and teams. We do plan on continuing to grow. We plan on adding new states in 2023, though that's never been our focus as much as it has been to partner with the best possible doctors we come in contact with. Oftentimes, we believe we grow in concentric circles around the doctors we partner with because a doctor who comes in and loves what they do, they have friends and peers they know well and they will then introduce us to their friends, peers and people they respect in the industry. Three quarters of the practices we partner with come in as a lead from another doctor.