The Growing Role of Dental Service Organizations

As dental service organizations (DSOs) continue to expand across North America, their role in shaping the future of dental care has become increasingly significant. With the market projected to grow to $454.7 billion by 2030 — at an impressive annual growth rate of 15.8% — DSOs are emerging as key players in consolidating and modernizing the dental industry. But with rapid growth comes unique challenges that require innovative solutions to maintain operational efficiency and deliver consistent care across practices.

The DSO advantage

DSOs offer extensive administrative support, allowing dentists to focus on providing high-quality patient care rather than being bogged down by day-to-day operational tasks. These organizations provide essential services such as supply chain management, quality assurance, marketing, HR support, and revenue cycle management. Leveraging economies of scale, DSOs negotiate better pricing on supplies and equipment, enabling practices to expand and remain competitive.

The appeal of DSOs lies not only in their operational support but also in their ability to help practices scale effectively. As more retiring practice owners look to sell, the demand for DSOs will continue to rise, reshaping the dental care landscape in both the United States and Canada.

Challenges of managing DSOs

Despite their benefits, DSOs face several operational hurdles that can hinder their efficiency and growth. Among the most pressing challenges are:

• Lack of centralized reporting: For DSOs managing multiple practices, centralized reporting is critical. Without a unified view of performance metrics across locations, it becomes difficult to identify underperforming areas, implement improvements, or make data-driven decisions in real-time.
• Reliance on manual processes: Manual data entry is time-consuming and prone to errors. Issues such as incorrect billing codes or patient details can lead to claim rejections, delays, and increased labor costs as organizations scale. Manually calling patients, for example, is time-consuming (as opposed to automated reminders, for example).
• Inadequate denial management: Revenue from denied claims often goes unrecovered due to poor denial management processes. DSOs that lack a structured system for tracking and appealing denials risk significant financial losses.

Solutions for greater efficiency

Addressing these challenges requires a proactive approach and the adoption of advanced technologies. Here’s how DSOs can enhance efficiency and overcome operational bottlenecks:

• Automated patient engagement: Implementing patient engagement software streamlines communication, reduces no-shows, and enhances patient satisfaction. Automation handles appointment reminders, follow-ups, and recalls — freeing up staff to focus on patient care and practice growth.
• Centralized data systems: Implementing centralized reporting platforms enables DSOs to gain a comprehensive view of performance across locations. This facilitates better decision-making and faster identification of areas needing improvement.
• Claims automation and denial management: Automated claims management systems help reduce errors, minimize denials, and recover lost revenue through efficient appeals processes.
• Training and standardization: Regular staff training and process audits ensure consistency across practices. Standardized workflows improve productivity and enhance patient care.

The future of DSOs

In 2025, DSOs have the opportunity to redefine dental care by leveraging technology and prioritizing operational efficiency. By addressing inefficiencies and adopting centralized systems, DSOs can achieve sustainable growth while delivering high-quality, patient-centered care.

With the market poised for continued expansion, the focus for DSOs will be on creating streamlined, scalable processes that enhance profitability and ensure consistent care across practices. As the dental industry evolves, DSOs will play a pivotal role in shaping its future — one that prioritizes efficiency, innovation, and exceptional patient experiences. In fact, if you want five concrete ways to increase efficiency at DSOs (and MSOs!), we’ve got the guide for you! 

By embracing these strategies, DSOs can not only overcome operational challenges but also solidify their position as leaders in modern dental care.

How Intiveo can help

In addition to guides, we offer a library of resources to support dental and oral surgery practices across Canada and the United States. Explore our resources library for template packages, guides, and more — including our podcast, The Patient Experience Blueprint.

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