Dental Service Organizations (Dso's)
DSOs are a highly discussed topic in the dental marketplace, experiencing rapid growth in various forms. These companies come with diverse structures, with some opting to acquire dental practices, while others choose partnership arrangements. The primary purpose of DSOs is to alleviate dental practitioners from non-clinical aspects, allowing them to concentrate on delivering quality clinical care.
These organizations often possess a high level of sophistication, making it crucial for dentists to be well-represented by a professional team capable of effectively navigating negotiations with DSOs.
Dental & Medical Counsel, a renowned dental law firm, specializes in providing assistance to dentists in their interactions with DSOs and private equity groups. Our team of dental lawyers and dental attorneys offers comprehensive support in various areas, including sales, acquisitions, partnerships, investments, and associate agreements.
We also provide expert consultations to dental groups and individual dentists nationwide, guiding them through the establishment and organization of DSOs while ensuring full compliance with relevant state and federal laws, rules, and regulations.
What is a dso?
Dental service organizations (DSOs) or dental support organizations are companies that provide business support services to dental practices. These services can vary widely and typically include staffing, advertising, management, and revenue cycle management. As DSOs grow, they can centralize operations and use their bargaining power to lower costs for labs, supplies, and equipment, benefiting practitioners.
To comply with state laws against the corporate practice of medicine, DSOs have a structured approach. They acquire the non-clinical assets of the practice and establish agreements with licensed dentists who retain ownership of patient records, clinical assets, and the responsibility for clinical care.
This structure is necessary because many states prohibit non-dentists from owning dental practices, with exceptions like New Mexico and Arizona. DSOs primarily offer business and administrative support to dentists while preserving their clinical autonomy.
Advantages of partnering with a dso
Business Support: DSOs provide comprehensive business support services, allowing doctors to offload non-clinical tasks such as billing, HR management, marketing, and administrative duties. This allows doctors to focus more on providing quality clinical care to their patients.
Streamlined Operations: DSOs often have well-established systems and processes in place, enabling efficient operations and standardized protocols across multiple practices. This can result in improved productivity, reduced overhead costs, and increased profitability.
Economies of Scale: By joining forces with a DSO, doctors can benefit from the collective purchasing power of the organization. DSOs can negotiate favorable pricing for supplies, equipment, and laboratory services, leading to potential cost savings for the partnered doctors.
Professional Development and Support: DSOs can offer access to professional development programs, continuing education opportunities, and mentorship from experienced clinicians within the organization. This can foster personal and professional growth for doctors, enhancing their skills and knowledge.
Network and Collaboration: Partnering with a DSO allows doctors to be part of a larger network of dental professionals. This offers opportunities for collaboration, knowledge sharing, and peer support, fostering a sense of community and professional connection.
Disadvantages of partnering with a dso
Loss of Clinical Autonomy: Partnering with a DSO may involve relinquishing some level of clinical decision-making and autonomy. The DSO may have certain protocols or guidelines that doctors must follow, which could limit their flexibility and individual treatment approaches.
Limited Control over Business Operations: Doctors may have less control over various aspects of the practice's business operations when partnered with a DSO. This can include decisions related to hiring, marketing strategies, practice policies, and other administrative matters.
Potential Cultural Differences: DSOs often have their own corporate culture and values. Doctors should evaluate whether their own professional values align with those of the DSO to ensure a compatible working relationship.
Long-Term Commitment: Partnering with a DSO typically involves a long-term commitment. Doctors may face challenges if they wish to exit the partnership before the agreed-upon terms or if the DSO undergoes significant changes or is acquired by another entity.
Regulatory Compliance: Doctors must ensure that the DSO they partner with adheres to all applicable laws, regulations, and ethical standards. Non-compliance by the DSO can potentially reflect negatively on the partnered doctor's professional reputation.
The Dental Attorneys at Dental & Medical Counsel are here to help
At Dental & Medical Counsel, we understand that partnering with or selling to a Dental Support Organization (DSO) is a significant decision for our clients, carrying personal, professional, and financial implications. Over the past 20 years, we have assisted thousands of dentists in achieving their career and practice goals, facilitating over $2 billion in successful practice transitions.
It is crucial that our clients refrain from responding to unsolicited offers and attempting to negotiate a deal without proper representation. We have witnessed numerous doctor-negotiated deals in the past that unfairly favored the DSO partner. As advocates for our clients, we emphasize the importance of seeking professional representation.
Our law firm has been at the forefront of establishing DSO management companies that comply with state regulations. We have played a vital role in assisting some of the nation's largest DSOs in delivering services to dentists while adhering to state laws associated with dental practice.
Whether you intend to sell your practice to a DSO buyer or establish a Dental Service Organization, it is essential to engage the services of an experienced dental attorney. With our expertise, we can help you explore your options, design a transition plan aligned with your personal and professional goals, and advocate for your best interests.
