Dr. White will serve on the panel “Where DSOs are Headed Next: Growth Strategies and More” at Becker’s Future of Dentistry Roundtable. As part of an ongoing series, Becker’s is talking to healthcare leaders who plan to speak at the conference on Oct. 27-28 in Chicago.
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Question: Where do you see the dental industry headed?
Greg White: The dental industry is headed toward consolidation at an ever-increasing rate. The momentum behind this consolidation is the $130 billion of private equity investment that has been infused into the industry through ownership interest in dental service organizations. That has had the effect of changing the valuations of dental practices, which has widened the gap between practice value and what new dental graduates can afford. This will forever change the landscape of dentistry from both the provider and patient perspectives.
This is a familiar theme and has been seen before in both medicine and pharmacy. The unintended consequences associated with this form of consolidation, which we’ve learned from a historical perspective, is that the doctor and pharmacist were commoditized. This occurs as high multiples of EBITDA are paid to the business owner, and along with that buyout has the net effect of including all future profits from that business or practice. Communities, patients and staff are forever impacted by these transactions.
Q: What are you most excited about right now and what makes you nervous?
GW: I’m most excited about my company’s mission to take a different direction and influence the manner in which consolidation occurs in dentistry. What makes me nervous is I don’t have $130 billion. However, what we do have is the fact that there are so many of my dental colleagues who care deeply about what they’ve built and the legacies that they leave. The conviction that’s required in that mindset is the cornerstone of our approach of bringing doctors together with a common purpose. These colleagues see one another as partners as opposed to competitors. They recognize that the changing marketplace is the true competition for the dental provider. Fueling our purpose is a commitment to patients, communities and the profession.
Q: How are you thinking about growth and investments for the next year or two?
GW: Now more than ever we understand the importance of investing in our people. This includes investing in our team and the doctors we serve. Our doctor owners are individuals who mostly started from scratch, building their practice from the ground up. They remember waiting for their first phone call, first appointment made and the first procedure performed. They realize the satisfaction of growing from that moment into vibrant practices that positively impact so many people and communities. They are builders. They are competitors. They are not spectators. We are committed to investing in those types of people and the communities they serve.
When we think about growth and our goals, we take a very different approach. We focus on how we can help our doctors self-consolidate in an effort to preserve the ownership in their practices, the profitability in their practices, and ultimately a long term continuity of care for their patients, which can only be accomplished through true doctor ownership in all levels of the organization. Our growth goals and efforts are focused on supporting and serving for the next three to five generations, not merely reaching financial goals for three to five years.
Q: What will dental leaders need to be effective leaders for the next five years?
GW: The most important thing a leader can do is create a vision and communicate it clearly throughout the organization, with their team fully embracing and understanding that vision and their role to achieve the associated goals. A pointed sense of purpose is also required, and cannot be centered around financial goals. Instead, it must be focused on doing good and creating a real sense of authentic worth for every individual. Additionally, that vision must be directed by core values that are lived and not merely lectured — truly organic values based on the DNA of the company and its people. It must be real and not manufactured. The best people will continue to migrate toward companies that provide this type of intentional, meaningful and real environment.