The October 5th edition of the Central Penn Business Journal features an article entitled, “The Best Business Model Always Wins… Even In Dentistry.”
The authors – Brandon Rogers, vice president of finance for Verber Dental Group, and Michael Verber, president & CEO, provides very interesting analysis of the mergers and acquisitions (M&A) movement with U.S. dentistry; specifically, the rise of dental service organizations or dental support organizations (DSOs).
The authors make the point that the consolidation of dentistry has been accelerated by the COVID-19 pandemic; solo dentists everywhere are even more overwhelmed than usual by the “business” aspects of dentistry. That’s the result of coping with the additional infection control procedures, including sourcing vital PPE, enhanced decontamination/sterilization procedures, securing operating capital, and everything else required to operate in the “new normal.”
It’s not surprising that many more solo dentists and small group practices would embrace a solution that relieves them of managing the business.
Is Big Business Good For Patients?
The authors cite a concern that DSOs may emphasize quarterly profits and corporate imperatives at the expense of patient welfare. Given some of the complaints about various DSOs, there may certainly be some validity to those concerns.
However, according to the article, there’s a new M&A “movement” – a new dentistry business model taking place – the Dental Health System. The authors write, “Locally owned by providers who see patients on a regular basis, a Dental Health System can have a geographic focus that allows it to best serve all the stakeholders including the team, the patients and the community.”
The authors conclude, “...it is possible the best business models will be those that can remain locally owned and find new opportunities to serve all stakeholders and deliver new possibilities. It cannot be overstated… the best business model always wins.”
Should You Cooperate Rather Than Compete?
Every dentist’s practice goals and competitive environment are different, so there’s no “right” answer to that question. However, if you’d prefer to be able to focus on actually doing the dentistry (instead of managing your business) while maintaining a patient-centered focus, a Dental Health System might be the answer.
SmartBox employs the best minds in dentistry to help you grow your practice. Our Practice Growth System™ is proven to help dentists in every market area across the country achieve predictable year-over-year growth.