There is no one-size-fits-all structure that will breed success for every DSO, but there are common themes woven throughout thriving groups.
Finding effective ways to integrate cost-saving technologies and create some level of standardization organization-wide is a non-negotiable in 2026, according to two executives.
Outside of revenue, cost management is a crucial aspect to DSO success, especially with industry headwinds not going away anytime soon.
These two dental CEOs recently connected with Becker’s to share the models, setups and operations successful DSOs are leveraging to set themselves apart.
Note: Responses were lightly edited for clarity and length.
Question: What operational or strategic variables can most reliably predict which DSOs are pulling ahead and which are falling behind in today’s industry landscape?
Len Schiavone. CEO of Cordental Group (Cincinnati): In looking at what operational or strategic variables that can most reliably predict which DSOs are pulling ahead and which are falling behind, the most impactful measures are revenue growth beyond industry average (usually in the 1.5% to 3.0% range) and clinical and variable cost management. Given inflationary headwinds, most of which look to remain in the future, the opportunity to leverage technology to help reduce direct cost while providing strong clinical care is vital for DSOs now and especially into the future.
Thomas von Sydow. CEO of Cornerstone Dental Specialties (Irvine, Calif.): From an operational standpoint, the DSOs that have solid systems in place will win. Not everything has to be standardized, and this does not apply to clinical decision-making. However, it is a myth that you cannot implement global IT, EMRs, HR and operational standards. I see a lot of DSOs trying to appease everyone and use layered systems to aggregate information. It’s not scalable nor sustainable. From a strategic perspective, I think most smaller, general practice-based DSOs have no real specialty strategy. Heartland prefers their GPs do as much as possible and they deploy that culture. PDS Health prefers using only specialists and they deploy that culture. There is no right strategy on specialty, but pick one. However, if you are referring out at one location, having GPs do it in another and some offices hiring independent contractors that cannot scale, you are leaving tons of revenue on the table.
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.