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The dental industry is undergoing significant changes, with a notable shift from solo ownership to group practices within Dental Service Organizations (DSOs). Brady Frank, a respected figure in the dental community and Co-Founder of Freedom Dental Partners, shares his expertise on the future trends in DSOs, integrating insights from recent industry analyses.
Consolidation in dental practices
The American Dental Association (ADA) reports a significant decrease in solo ownership, almost 15% between 1999-2021. Meanwhile, the trend towards DSOs is accelerating, with the number of dental school seniors planning to join DSOs, more than doubling from 12% in 2015 to 30% in 2020. This shift is crucial for group practice leaders and DSOs to stay competitive and seize growth opportunities.
1. Embracing technological advancements
Frank stresses the importance of technology in the evolution of DSOs. The incorporation of digital tools, such as electronic health records, telemedicine, and computer-aided design, is revolutionizing patient care and administrative efficiency. These technologies are not just about innovation, they are about improving accuracy, reducing human error, and ensuring compliance with regulatory standards like HIPAA. The adoption of these technologies can lead to fewer denied insurance claims and increased revenue, ultimately benefiting both the patients and the dental practices.
2. Increasing dental insurance coverage
The rise in dental insurance coverage is another significant factor reshaping DSO operations. This trend is leading to a higher patient volume, providing opportunities for growth and increased revenue. However, it also brings greater administrative burdens, necessitating DSOs to be adept at navigating complex insurance regulations, coding rules, and regulatory requirements. It underscores the need for DSOs to have expert knowledge in these areas to maintain efficiency and compliance.
3. Enhancing patient convenience
Patient convenience is becoming a key driver for DSO growth. Frank points out that leveraging automation for scheduling appointments, sending reminders, and facilitating payments can significantly enhance the patient experience. Online scheduling tools and text-to-pay reminders not only reduce administrative burdens but also improve patient satisfaction by offering a more streamlined and frictionless experience. These technological advances are crucial in retaining patients and improving practice efficiency.
4. Growing interest in revenue cycle management (RCM)
RCM is increasingly recognized as a vital component for DSOs. Frank notes that effective RCM can significantly improve a DSO’s financial performance by reducing the time between service provision and payment receipt. By encompassing all aspects of patient care and financial transactions, RCM aims to maximize revenues, reduce overhead costs, and improve cash flow. It also plays a crucial role in enhancing patient satisfaction by ensuring smooth operations and focused patient care.
5. Utilization of RCM services
DSOs are increasingly turning to specialized RCM services to streamline their operations. Frank emphasizes the importance of selecting a reliable RCM service partner to address staffing challenges, standardize revenue collection operations, and adapt to changing technology. A competent RCM partner can pinpoint and correct issues swiftly, ensuring cost-efficient, accurate, and compliant processes.
Embracing change: Navigating the new era of DSOs
Frank’s insights show that the shift towards DSOs is a critical evolution to help dental professionals stay competitive and adapt to new technologies, increase dental insurance coverage, and enhance patient convenience strategies. By recognizing the importance of RCM and embracing specialized services, dental practitioners can improve their operational efficiency and patient satisfaction. These developments suggest a future where DSOs are increasingly capable of delivering superior, efficient, and patient-centric dental care, signifying a notable progression in the field of dentistry.
While Frank does think DSO structure is essential to the future of dentistry, he strongly believes that not all DSOs are created equally and that ownership structure matters. His current work focuses on combining the efficiency of the classic DSO with upside potential for the dentist whose life work is being leveraged.
