There are still a number of advantages that come with maintaining an independent dentistal practice, from more intimate interactions with patients to having more day-to-day flexibility.
For dentists who do decide to partner with a DSO, it is crucial to undertake due diligence ahead of time to ensure long-term goal alignment.
Melville, N.Y.-based All County Oral & Maxillofacial Surgery has expanded to 11 locations in New York and has remained independent, competing with private equity and other DSO-backed groups.
Ross Chavkin, DDS, founder and owner of the practice, and Suzanne Villani, All County’s COO, recently connected with Becker’s to talk about the future of consolidation in dentistry and how younger dentists should approach the landscape.
Note: Responses were lightly edited for clarity and length.
Question: Where do you see consolidation headed in oral surgery and dentistry over the next couple of years?
Dr. Ross Chavin: It’s hard to predict, but I think that the bigger companies are going to swallow up the smaller ones. I do feel that we are going to see a resurgence of private practice. There is a lot of negativity floating around private equity. They dangle this big carrot in front of your face and they talk about this big payday, but at the end of the day, you’re still responsible to work for them for a period of time and have hit certain numbers. That can become a lot more stressful than it was when you were running your own practice right. We also have to hit certain numbers, but I’m not worried on a day-to-day basis. Dentistry is not as consistent as private equity wants it to be. There’s a lot of ebbs and flows. It’s ups and downs. There’s good days, there’s bad days.
We teach our office managers that this is still a larger Mom and Pop kind of organization. We want patients to feel comfortable and make sure that they had a good experience. If something wasn’t exactly the way they wanted it to come out, we help them through the process. At an organization with hundreds of practices, you’re going to get rerouted to some billing center in the middle of wherever. To me, the consolidation, I don’t see it being as prevalent as everyone is anticipating it to be.
Suzanne Villani: I’m along the same lines as Dr. Chavkin. I was in that DSO world for a long time, and prior to that, I was in the private world. There’s just something so lost once it happens. Big DSOs will give you all these promises and that nothing’s going to change things. That is until you have to hit those numbers and then things start getting outsourced. When that happens, patients become very unhappy because they can’t speak to somebody like they used to be able to. I think that colleagues will tell each other to not go into private equity. Down the line, I could see that private practices all start banding together to keep doing our own private thing.
Q: What advice would you give to dentists who are considering a DSO partnership or staying independent?
RC: Do your homework on the company. Find out exactly what they intend to do with you, what their long term goals are and see if they mesh. No matter how good you are or how great the company is, or what industry you’re in, if you’re working for somebody else, you could be let go at any time. Don’t just jump at the dollar signs, because there’s a lot more to it than dollar signs. Coming out of dental school, a lot of these young doctors are way behind the eight ball financially. And when they see the numbers, or they hear the numbers, they get excited. They think ‘I’m going to be out of debt in no time.’ But there is a price to that.
SV: Young dentists need a mentor to make sure that whoever they are deciding to join will invest in them and their development. Ensuring that your needs align is really what it comes down to. In private practice, young dentists can build something and potentially make a lot more money. If they just want to show up, do the work and go home, then the DSO world is probably going to be a better fit.
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.
