5 Things to Remember After Buying a Dental Practice

It’s an exciting time to be a dental service organization (DSO). Projected growth in this market is high, with a value of $583.68 billion USD by 2032. There are going to be a lot of opportunities to expand in the coming years. Having the right processes in place every time you buy a dental practice is going to be integral to success.

If your DSO has just completed the process of buying a dental practice, congratulations. How you proceed next sets the tone for the rest of your relationship with the dental practice you have just acquired. In this blog, we offer a checklist so that you can approach this process with ultimate preparedness.

#1: Start by reviewing expectations

Always begin by focusing on your most important asset: people. It’s likely that, before buying a dental practice, the DSO and the (now former) practice owner discussed expectations for both themself and their staff. After all, the practice owner is moving from a boss to an employee. It’s a huge transition for them. Review expectations such as which metrics the dentist’s performance is tied to. These metrics might include:

• Patient satisfaction scores
• Production goals
• Efficiency benchmarks

Outline the transition plan, and ensure that each staff member is aware of it. Often (although not always), it will have been previously discussed that staff members are welcome to stay on in their current positions. However, be prepared for some of them to move on. You may also need to hire additional staff to implement the plan, such as a new practice manager.

#2: Standardizing processes

The next step after buying a dental practice will be to standardize key processes. This is key to improving both efficiency and patient care.

In terms of business procedures, you will want to consider standardizing administrative tasks like billing, insurance claims, and financial reporting. This reduces errors and saves time for staff, allowing the practice to operate more efficiently. Additionally, ensure systems are in place to enhance patient engagement! For example, you may replace manual recall systems with modern patient engagement platforms. These systems automate appointment reminders, follow-ups, and communication, helping the practice to stay organized and improving patient satisfaction. In fact, standardizing every dental practice in your care by bringing them onto the same platform can allow you to aggregate results and see where successes are occurring. (If you’re finding that every practice in your care has an efficiency issue, don’t worry — we wrote a guide for that!)

Standardizing these processes aligns the new practice with the larger network, creating a smoother experience for staff and patients alike.

#3: Take a close look at finances

After buying a dental practice, optimizing finances will always be at the top of the list. The first step in the financial management process is to centralize accounting operations. 

This involves transitioning payroll, vendor payments, and revenue tracking to your DSO’s finance team. This is how you can begin to reduce errors and maintain better control over the practice’s finances.

And of course, next comes a thorough profitability assessment. This evaluation looks at the practice’s revenue streams, expenses, and overall financial health. By analyzing this data, you can identify areas where costs can be reduced or operations optimized. It’s likely that one of the reasons that the practice owner wanted to sell to you in the first place is that they want this type of oversight! Your DSO can now begin to renegotiate vendor contracts or implement improved billing systems.

These initial steps ensure the practice is financially stable and aligned with your DSO’s broader business goals. Centralized accounting and profitability assessments lay these foundations for long-term growth and success.

#4: Dive into operational management

It’s likely that this is another main reason that the practice owner was interested in your DSO buying their dental practice. Operational management is very challenging for smaller practices. 

The financial aspect isn’t the only reason that you will want to begin renegotiating vendor contracts, it’s also key to supply chain management. Your DSO centralizes procurement, using its buying power to negotiate better deals on equipment and materials. This ensures supplies are always available, in addition to reducing costs for the practice.

Another early focus for your DSO should be on facility upgrades. Your DSO may want to invest in renovations or new equipment to modernize the practice. This can make the office more appealing to patients and improve the quality of care. These upgrades help the new practice align with your DSO’s operational standards.

#5: Last but not least, prioritize the team

Remember: your first priority, always, is your people! After first buying a dental practice, your DSO should prioritize immediate support for the doctor and staff. There are a few key areas you could focus on.

One is regulatory oversight. You must check and ensure that the practice complies with federal, state, and local patient privacy regulations, such as HIPAA. You will also want to begin with an audit to ensure quality assurance for care. Your DSO’s function is also to lighten the load for doctors and staff by relieving administrative and compliance burdens, allowing the clinical team to focus entirely on patient care.

One of the reasons this practice owner may have chosen to sell to you is for continuing education. This ensures staff stay updated on new techniques and technology, boosting confidence and skills.Your DSO may offer training sessions, workshops, or even certifications.

How we can help

In addition to our guide, 5 Ways to Increase Efficiency at DSOs and MSOs, we offer a number of resources for dental and oral surgery practice across Canada and the United States, including reports, self-assessments, and more. You can also check out our podcast for dynamic conversations about the key issues in today’s dental industry.

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