DSOs will have to place more emphasis on doctor retention in the near future if the industry faces dropping dental school enrollment.
Barry Lyon, DDS, the dental director for Main Street Children’s Dentistry and Orthodontics and the chief clinical auditor for Dental Care Alliance, connected with Becker’s to discuss this potential industry shift.
Editor’s note: This Q&A is part of a weekly series featuring Dr. Lyon focused on topics in the dental industry and DSO field. The views expressed are those of Dr. Lyon and do not necessarily reflect those of Main Street Children’s Dentistry and Orthodontics or Dental Care Alliance.
This response was lightly edited for clarity and length.
Dr. Barry Lyon:
If students have difficulty obtaining federal loans for dental school and there is a drop in enrollments, DSOs may need to focus even more on doctor retention.
Retention of doctors has always been a key concern for DSOs. A 2021 report from the American Dental Association stated that of the new dentists who affiliated with a DSO in 2016, 57% remained affiliated five years later, while 43% sought positions elsewhere. This turnover rate exceeds dentists in private practice even though some DSOs report doctor retention rates as high as 90–98%. Retention strategies have evolved from simply a focus on compensation, robust mentorship, and a welcoming and transparent onboarding process. The expansion of DSOs has forced leaders to rethink what it takes to hire effectively and keep doctors.
Currently, one effective way to retain top docs is through partnership opportunities. Because the ability of young doctors to open their own practices has gotten significantly more expensive, partnering with a DSO has become extremely attractive to both sides. There are clear benefits for everyone. For the dentist, there is the blend of professional autonomy and clinical control of the practice paired with the financial expertise and operational benefits of a large group. For the DSO, their most productive doctors now have “skin in the game” and a commitment that transcends that of an associate doctor.
For these partnerships to succeed, there needs to be mutual trust that everyone’s motives are aligned.
