Outlook for DSOs: 5 Big Trends at Becker's 2024 Future of Dentistry Roundtable

DSOs continue to gain traction in the dental industry. The current landscape shows a robust trend of consolidation, where smaller practices are merging or being acquired by larger DSOs to leverage economies of scale. This consolidation enables practices to reduce operational costs, enhance bargaining power with suppliers and implement advanced technologies more readily.

Looking ahead, the outlook for DSOs is promising, with significant growth anticipated due to several factors. DSOs, with their substantial investments in cutting-edge technologies, are well positioned to lead the adoption of these innovations, offering patients more accessible and efficient care.

Alex Einbiner, DDS, owner and dentist at West Babylon, N.Y.-based Caterpillar Dental echoed this sentiment on the panel "Smart DSO Investment and Business Strategies."

While a majority of practicing dentists aren't currently affiliated with a DSO, Dr. Einbiner predicted that will change in the future.

Moreover, the predicted shortage of solo practitioners is likely to further catalyze the DSO model, as new graduates and existing practitioners seek the stability and resources that larger organizations can provide. Furthermore, value-based care models are gaining importance, urging DSOs to focus on patient outcomes and cost-effectiveness, which will drive more strategic approaches to patient management and care delivery.
For DSO leadership, the emphasis must be on sustaining growth while ensuring high-quality patient care and staff satisfaction. Strategic investments in training and development programs are essential to nurture talent and maintain a competitive edge. Leadership should prioritize robust data analytics to make informed decisions and tailor services to the evolving needs of their patient base.

Naimish Patel, co-founder of Detroit-based Seva Dental Team, warned against going too far into data analytics.

"We overinvested in data and analytics and dashboards, but we didn't have a culture of our teams understanding what information to look at," Mr. Patel said during a panel discussion on smart DSO investment and business strategies. "We had all these really neat dashboards and information, but nobody knew what to do with them. We had to reverse the course, spending six months really training and teaching our teams what information is helpful to help them; undoing stress or helping increase patient service in practices; and then equipping them with the information."

As regulatory landscapes become more complex, especially with changes in healthcare laws and insurance policies, proactive compliance management will be critical. Ultimately, the future of DSOs lies in their ability to adapt to technological advancements, manage organizational growth and maintain a patient-centric approach, ensuring they remain at the forefront of the dental industry.

"There's so much exciting AI and technology out there right now, and it's continually evolving," Phil Cassis, co-founder and CEO at Providence Dental Partners, shared during a panel session on top priorities for DSO executives. "All those things we're looking at, we're implementing where it makes sense. It just gives us a lot of operational efficiencies. It goes back to the staffing challenge; if it's technology we can put into play that lessens the burden on the teams that we have, we're all about it."