Content Dam Diq Online Articles 2015 04 Dental Service Organization 1

Advice from successful dentists: Why buying into a DSO-supported practice can be a great option

April 24, 2017
For these dentists, a Dental Service Organization was the way to go for their practice purposes. Here are some of their reasons they went with a DSO.

Article sponsored by Benevis

For these dentists, a Dental Service Organization was the way to go for their practice purposes. Here are some of their reasons they went with a DSO.

Today’s dental school graduates carefully weigh all practice establishment options. They take into consideration many informed factors before deciding whether to establish a solo practice, buy into a private or DSO supported practice, or join a group.

This is a dramatic change from what dentists did 15 to 20 years ago. Dentistry has slowly but inevitably shifted to more DSO-supported and group practices. What’s precipitated this change? How has it affected patient care and the profession? This gradual shift in practice establishment requires looking at several key contributing factors:
1. Increased dental school debt
2. Changing insurance and patient dynamics
3. Growing need for quality work-life balance

Student debt factor
According to a study done by the American Dental Education Association (ADEA), the average debt per 2016 dental school graduate was $261,149.(1) Overwhelming school loans makes it daunting for young dentists to incur additional debt to establish practices. Since 1996, dental student debt has increased 96%.(2) Fifteen to 20 years ago, most dental school grads started solo practices in either their homes or office buildings. That’s not the case today.

“To help pay off my dental school loans, I proctor fourth year dental school students in an underserved community health clinic,” says Ronald Leyder, Jr., DDS, owner of Norton Shores Dental, a DSO-supported practice in Michigan. “Without this assistance, I wouldn’t have been able to buy into my dental practice.”

The ADEA study also reports 53.7% of dental school graduates will definitely or probably work with underserved communities after graduation.(3) However, the study doesn’t indicate whether or not their service is predicated on student debt obligations. “I push a lot of my students toward public health right out of dental school because it helps pay off their student loans,” said Dr. Leyder.

There’s no denying the change in how today’s young dentists want to set up offices and practice dentistry. The ADEA study reported a broad range of dental school graduate interest in group or DSO-supported practices.(4) Some dental schools reported that nearly 50% of their graduates were willing to join group practices after graduation, while other schools indicated that none of their graduates were similarly inclined.(5)

“In dental school, you don’t learn what it takes to run the business side of dentistry, and that’s why working with a DSO was the best way for me to go into private practice,” said Dr. Leyder. It’s interesting to note that even though Dr. Leyder went to business school before dental school, he still found it challenging to manage both the clinical and business sides of a practice. “I didn’t want to spend time running the business, you know crunching the numbers and making sense of them. It always felt like I was doing things halfway, and that can be overwhelmin, even with a business degree and a solid understanding of how to manage a business.”

Insurance factor
Patients shop around for health insurance, providers, and services. Yet their ability to afford dental care services has diminished over the past decade. Adult dental care is not a mandatory benefit and varies by state under the Affordable Care Act. Low-income children are guaranteed dental coverage under Medicaid and CHIP. Private dental insurance is not the same as medical insurance. It’s structured completely opposite of medical insurance.(6) There’s a cap on coverage and beyond that, it’s up to patients to pay out-of-pocket.(7) While many employers offer dental insurance, it’s usually optional and might require employees to pay all or a significant portion of the cost.

Bottom line, having dental insurance has become an issue of whether the benefits outweigh the costs of coverage. “I’ve seen how insurance has really forced patients to make choices based on their coverage,” says Thalia Shirley, DDS, owner of Carrier Parkway Dental Group in Dallas, Texas. “That’s why I try to figure out a formula that gives them the care they need and deserve, not just something insurance-driven.” Dental care has become a luxury item for many middle- and low-income families.(8) This diminution has had a significant impact on dentistry—everything from how dentists set up and staff practices to how they price services.

Patient factor
Fluctuations in unemployment rates plus other economic uncertainties have affected how consumers allocate discretionary funds, even on health care expenditures. In the early part of the 21st century, there was a gradual decline in adults visiting the dentist.(9) Even with expanded government dental care for children, low reimbursement rates made it less economical for dentists to take these patients.

According to the 2013 research brief done by the ADA’s Health Policy Resource Center, young adults will account for a smaller share of total annual dental expenditures, while dental services used by older adults will increase.(10) The study goes on to say that even though total dental expenditures will grow in the next 30 years, the annual rate of increase will be less than in preceding decades. This is referred to as the emergence of a “new normal” in dental spending.(11)

If aggregate spending on dental services goes down in the key demographic of young adults but goes up for older adults and children, who are covered by government programs paying lower negotiated rates, it becomes more difficult to build and sustain financially viable practices. It’s one of the primary reasons why group or DSO-supported practices have become more appealing to young dentists. With the support of a group or DSO behind the practice, dentists have power in numbers and resources to help get better payor-negotiated rates, reduced costs for lab fees, dental and office supplies, and facilities management. “There’s less of a financial risk with greater resources and support when starting a practice with a DSO,” said Dr. Leyder.

Work-life balance factor
In the 2016 U.S. News & World Report’s best job rankings, orthodontists ranked number one and dentists ranked number two.(12) Dentistry ranks high because practitioners canpractice in their hometowns, set practice hours, manage practice involvement (i.e., group or DSO), minimize life or death patient treatments and interactions, earn six-figure salaries, and achieve high quality work-life balance.

Compared to their physician counterparts, dentists have more flexibility and overall reduced patient care stress. Dentists who are part of a group or DSO-supported practice say they experience greater ability to focus on what they do best—dentistry—instead of office and staff management. “I have responsibilities for paying my student loans and mortgage while also trying to save for retirement. Working with a DSO such as Benevis has alleviated those burdens so I can really focus on the things I’m excited about doing in dentistry,” said Dr. Leyder.

“Absolutely, it’s a model that works because it allows me to develop my vision for the practice and focus on providing the best dental care to my patients without worrying about the business side,” concurs Dr. Shirley. Most dentists, whether solo or group practitioners, are able to be their own bosses, and determine schedules and office set up, which in turn enables a healthy work-life balance.

That said, running a solo practice requires more hands-on responsibility to manage the business and it can often be stressful and time-consuming. “I watched my father manage every single aspect of his dental practice growing up and I know what a burden it can be. I’m glad not to have to deal with that,” said Dr. Leyder.

Practice factor
What’s the best way to start a dental practice? It ultimately depends on individual objectives and requirements for practice structure, involvement, location, and quality of life. Like Dr. Leyder said, most dentists don’t learn the business side of dentistry in dental school and that’s an important part of running a successful practice.

It’s really important to research all practice options to ensure financial feasibility and professional satisfaction. With a group or DSO-supported practice, new dentists can focus on the clinical side while gradually learning the business side from experienced experts. There’s also opportunities for practice buy-out and sole-ownership over time. “It’s really easy to be good at business or really easy to be good at dentistry, but it’s really hard to be good at both,” said Dr. Leyder, “Benevis has allowed me to be really good at dentistry with a high-quality work-life balance.”

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Ryan Lindgren is vice president of acquisitions and development at Benevis Practice Services, an Atlanta-based dental service organization. Since 2004, he has led Benevis acquisitions with an exceptional understanding and hands-on management of client interactions. Ryan encourages his team to approach practice transitions as partnerships, fostered through integrity, transparency, and open lines of communication. He can be reached at (844) 879-0087, [email protected], or at

1. Educational debt: GoDental. (n.d.). Accessed February 21, 2017.
2. Wanchek, T., PhD, JD, Cook, B. J., PhD, Anderson, E. L., PhD, & Valachovic, R. W., DMD, MPH. (2016, May 1). Annual ADEA Survey of Dental School Seniors: 2015 Graduating Class. Retrieved February 21, 2017, from
3. Gawel, R. (n.d.). Today’s Dental Grads Face Big Debt and More Choices. Retrieved February 22, 2017, from
4. Ibid
5. Ibid
6. Zhai Yun Tan, Kaiser Health News. (2016, July 20). Addressing an overwhelming demand for dental coverage. Retrieved February 22, 2017, from
7. Ibid
8. Ibid
9. Solomon, E., DDS, MA. (n.d.). The future of dental practice: Demographics. Retrieved February 23, 2017, from
10. Nasseh, K., Ph.D., & Vujicic, M., Ph.D. (2013). Dental Expenditure Expected to Grow at a Much Lower Rate in the Coming Years. The American Dental Association Health Policy Resources Center Research Brief, 1-11. Retrieved February 24, 2017, from
11. Ibid
12. Snider, S. (2016, January 26). Discover What It's Like to Work as a Dentist or Orthodontist. Retrieved February 25, 2017, from