This month, dental professionals spoke with Becker’s about growth strategies, macroeconomic challenges, legislative changes and more.
Here is what five dental professionals told us in August:
US Oral Surgery Management exec on M&A: ‘We’ve had to be even more disciplined’
Alisa Ulrey. COO at U.S. Oral Surgery Management (Irving, Texas): Like most of healthcare, we’ve navigated a tougher environment this year, with higher costs, a tight labor market and the same economic uncertainty everyone’s dealing with. On the M&A side, we’ve had to be even more disciplined about who we partner with and where we know we can genuinely add value.
The policy changes that would overhaul dentistry
Alix Laurain. CEO of Viridian Dental Partners (Nashville, Tenn.): I’d fundamentally modernize the dental insurance model, which hasn’t kept pace with the cost or complexity of delivering care. Too often, insurance limitations dictate the scope or timing of treatment more than what is clinically appropriate for the patient. A model that functions more like true insurance — supporting prevention and early intervention while providing meaningful coverage when significant treatment is needed — would allow providers to deliver a broader, more comprehensive continuum of care. Better aligning reimbursement with clinical need could meaningfully improve both access and long-term outcomes.
The acquisition model getting DSO leaders’ attention
Ashish Bagai. Co-CEO and head of business development at Vitana Pediatric & Orthodontic Partners (Plantation, Fla.): We’ve already seen more people go into this [joint venture] concept. Traditionally, there were more 100% buyouts, and now people realize that continuity is really important, and that only happens if dentists own a portion of that practice … so that’s going to be a real trend. We hope we see a lot more slowdown in acquisitions, but [ones that] really are driving proper growth and support. I think practices deserve that support they’ve been promised. The industry is forced to now, but I still believe if the conditions open up, most practices or most groups will continue that level of organic growth focus, as they should, to be able to get the return required for their investors. Those are probably two things we’re going to see more and more of going forward.
The economics of dentistry fundamentally changed — and won’t be reversing
Geith Kallas, DDS. CEO of Smile Maker’s Dental Center (Tysons Corner, Va.): The cost of capital and growth is cyclical, but on a longer cycle. From 2019 to 2021, money was free. There were 4% loans and 15x EBITDA multiples. You could buy a practice, do nothing and make money on arbitrage. From 2023 to 2026, debt is at 9.5% to 11% and multiples at 6x to 8x. De novos cost 40% more to build. Interest rates will come down to 6% to 7% eventually, and multiples will recover. There is still the structural consequence: The era of “buy any practice and grow” is over for now. Only operators who can create EBITDA, not just buy it, will survive. A number of DSOs that grew on cheap debt will go bankrupt in the next 18 months.
Why Aspen Dental is betting on de novo growth over acquisitions
Rafeh Masood. Chief Commercial Officer at The Aspen Group (Chicago): The macroeconomic environment has probably been the biggest factor, and obviously it’s not unique to us. It’s not unique to dentistry. Rising costs have put pressure on households and budgets, and dental care can unfortunately be one of those things that people defer when money gets tight. That puts an even greater responsibility on us to deliver value. Aspen Dental has always been positioned around making quality care more accessible and affordable. In an environment like this, that proposition becomes even more important. Commercially, this also means we have to be extremely focused on removing friction. How easy are we to find? How easy is it to schedule? Are we communicating clearly with patients? Are we helping patients understand these options? Those things matter when consumers are making difficult choices.
At the Becker's 5th Annual Future of Dentistry Roundtable, taking place September 14-15 in Chicago, dental leaders and executives will gain insights into emerging technologies, practice growth strategies and the evolving landscape of dental care delivery, with a focus on innovation, patient experience and operational excellence. Apply for complimentary registration now.
