Why Dentists Need to Understand the Changing Landscape of DSOs

In recent years, dentistry has undergone a seismic shift, especially with the rise of Dental Service Organizations (DSOs) and the increasing consolidation of the industry. Dentists are facing more decisions than ever about the future of their practices, and these choices are crucial to securing both their financial success and the long-term care of their patients.

At Freedom Dental Partners, we believe dentists should not only be aware of this shifting landscape but also be positioned to thrive within it. The goal is not simply to sell a practice and move on - it's about ensuring a smooth, profitable transition that benefits both the dentist and their patients.

The DSO Boom: What Does It Mean for You?

If you’ve been practicing for any length of time, you’ve likely noticed the increasing presence of DSOs in your area. In fact, more and more practices are transitioning under DSO management.

But what does this mean for you as an independent practitioner?

Let’s be honest... Many of us didn't anticipate the degree of industry consolidation that’s happening today. The rise of DSOs has created a massive opportunity, but it’s crucial to understand the impact they have on practice ownership and retirement planning.

The next 3 to 7 years will be crucial for dentists as private equity continues to pour into the DSO model, driving billions of dollars into dentistry.

But here’s the real question: will that wealth end up in the pockets of Wall Street investors or dentists like you?

How Do DSOs Work?

Most dentists are familiar with DSOs on a surface level. Perhaps you've received offers from a DSO or had conversations with their salespeople. But few truly understand the inner workings of these organizations.

At their core, DSOs allow private equity firms to manage the non-clinical aspects of a practice, such as HR, marketing, and procurement, leaving the dentist to focus purely on patient care.

While that sounds like a win-win, the reality is far more complex.

When done poorly, you risk losing control of your practice and diminishing its value over time.

That’s why it’s important to understand the DNA of a DSO. How they structure deals, what ownership looks like, and what types of financial terms are involved. Our goal is to guide you through this complex process, ensuring that you’re not only financially rewarded but also that your patients and team are well cared for during the transition.

The right transition strategy, combined with the right DSO partnership, can allow you to reap the financial benefits of consolidation without compromising the values and standards you’ve built your career on. In fact, a warm and cozy transition is possible!

One where you retain control over the clinical aspects of your practice, keep your team intact, and ensure your patients continue receiving the high-quality care they expect.

At Freedom Dental Partners, we specialize in creating these types of transitions. By working with a network of dentists who have experienced these transitions firsthand, we’ve developed a model that benefits the dentist as much as the DSO.

It’s not just about the money (although the financial rewards can be significant); it’s about making sure you remain a central part of your practice and your patients' lives.

Preparing for the Future:

Whether you’re looking to cut back on clinical hours in the next few years or are ready to begin thinking about retirement, now is the time to understand how DSOs operate and what role they can play in your future.

The consolidation of the dental industry is moving at an unprecedented pace, and those who are prepared to act will be the ones who benefit the most.

Ask yourself:

• Are you ready to explore the financial benefits of transitioning your practice without sacrificing patient care?
• Do you understand how to evaluate a DSO deal and what it means for your long-term wealth?
• Are you prepared to navigate the next 3 to 7 years, ensuring that you capture the maximum value from your practice?

The decisions you make today will define the next phase of your career. With the right knowledge and support, you can secure a future that’s both financially rewarding and professionally fulfilling.

If you're interested in learning more about how DSOs and Dental Partnership Platforms can create opportunities for your practice, we'd love to discuss your options.