Is a Merger Right for Your Dental Practice?
Did you know that dentistry is the most active market in healthcare? As companies that buy dental practices offer higher front-end cash with equity rolls, 30% of American dentists have decided to join dental services organizations (DSOs).
Since there’s more to running a dental office than caring for patients, a DSO steps in to provide business support services to a dental practice. This entity allows dentists to focus on caring for their patients without worrying about operational and managerial support.
Are You Ready to Merge Your Dental Practice with a PE-Backed DSO?
Merging with a private equity-funded DSO can be a fruitful and sensible option for your large dental practice. If you’re a practice owner with multiple locations and aggressive growth expectations, you’re probably evaluating the path of joining a DSO. Needing help in any or all of the areas mentioned below indicates you might be ready for a merger.
Administrative Management
Since dental practice ownership involves numerous administrative tasks, you’ll have to keep up with accounting, tax management, marketing, and ordering supplies. Unfortunately, these time-consuming tasks can interfere with your desire to focus on your patients.
Joining the right DSO can address this issue because it has a team of professionals with expertise in financial management, supply chain management, human resources, and more. With a DSO handling the backend tasks of running your dental practice, you can give full attention to your patients.
Recruiting and Talent Management
The right team for your practice is vital to building your customer base. After all, your patients spend more time with office staff and dental hygienists than with you. However, figuring out hiring and firing, clerical staff, and training while focusing on patient care can be challenging.
With a DSO to support your practice’s non-clinical systems, including human resources, you can save time, money, and energy. A DSO can oversee recruiting and talent management on your behalf by accompanying candidates from interviews to onboarding to receiving compensation at their six-month mark.
Since a DSO may have exclusive job boards, they can help you recruit the right people for positions with various financial incentives such as sign-on bonuses and tuition reimbursements.
Insurance Management
If you find dental insurance and Medicare guidelines daunting, you’ll benefit from having a DSO to help you navigate the complex system of dental reimbursements. Besides having the power to negotiate the best rates and terms to fit your dental practice’s needs, a DSO can access various insurance companies and plans to provide you with the best solutions.
In addition, a DSO offers a concierge-style approach to handling patient insurance claims and issues that may arise with patient insurance. A DSO can also streamline your dental office’s billing and accounting process because they oversee all accounting practices.
Access to State-of-the-Art Technology
State-of-the-art technology comes with a high price tag. Besides being costly, most practice owners don’t have extensive knowledge of computer systems and equipment available to them. Securing the modern technology you need to run your practice and care for patients won’t be an issue if you join a PE-backed DSO.
Since a merger gives you access to vendors, you’ll have opportunities to secure equipment at lower prices than other practices could. Additionally, a DSO has technology experts who can ensure that the pieces of equipment given to your practice provides the best solutions that meet your needs.
Compliance and Legal Support
Joining a private equity-funded DSO ensures your practice meets government standards and regulations regarding treating patients, handling information, and more. Moreover, you’ll have access to expert resolution assistance when compliance and legal issues exist, including employee complaints or patient lawsuits.
Besides addressing compliance issues, a DSO can help you steer clear of potential problems by offering suggestions for improvement and continuous monitoring of your practice’s compliance.
Looking for Companies That Buy Dental Practices?
Viper Equity Partners is a leading investment banking firm focusing on plastic surgery, dental, and dermatology transactions. Contact us today to schedule a free consultation.