Larger DSOs may continue to have the upper hand as the dental field continues to evolve, but smaller DSOs will still retain some competitive advantages, according to leaders in the industry.
Four dental executives joined Becker’s Future of Dentistry Roundtable Sept. 14-15 to discuss what success will look like for future dental organizations.
Note: Responses were lightly edited for clarity and length.
Question: Is size going to continue to be an advantage in dentistry, or will smaller organizations be better positioned to compete in the future?
Jaspreet Gill, BDS, DDS, Founder, Countryside Smiles (Murphy, Texas): I think it depends upon the location of the business model. If you are in suburban Dallas, [there are] independent practices — like boutique, small-size offices [and] luxury practices — that are surviving … but if you go to rural [areas,] there are fewer providers, so it has to be a bigger office. I think you really have to study your demographic.
Ashish Bagai. Co-CEO at Vitana Pediatric & Orthodontic Partners (Plantation, Fla.): I think size matters to a certain degree, especially on the cost side. It does give you some advantages early on in the journey, whether it’s purchasing, insurance, payer contracting, et cetera, but we found that you get to a curve at 20 to 40 locations where that curve is really flat after that. So, I think it does give you an early advantage, but I’m not sure if that persists too much going forward. What we like to think is, be large enough to have those advantages, but then be small enough to have the people who make the decisions, the leaders, be close to the ground and drive top-line growth because I’m not sure top-line, same-store growth comes too much from size only. So, it does give you cost advantages, but not necessarily on the revenue side.
Brian Groeschel. CFO at More Dental Solutions (Huntersville, N.C.): I think bigger is better. I think there is some truth to that where you can have that economy of scale, but I think it really doesn’t come down to size. It comes down to how quickly you can tackle certain projects that you need to execute as an organization. There are some small organizations that take a long time to do things and some larger organizations that roll out things pretty quickly. I think it’s just a matter of the speed and efficiency at which you operate.
Justin Lai, DDS. Chief Dental Director at Dent-Well (Houston): I think size is going to continue to maintain the same advantages, but we all know there are disadvantages that come along with size as well, and I think those are going to continue to maintain as well. When it comes to competition, though, I don’t see the competition as big versus small, and it’s not DSO versus single doctor. If we’re talking about the same type of competition, I think it’s always been patient apathy. Last study I saw, less than half of Americans even go to a dentist still. So there’s plenty of them out there. That’s still the competition.
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.
