DEALING WITH A DSO

A “DSO” is a “Dental Services Organization” or a “Dental Support Organization”. The concept of a DSO is that, by dividing the business administration of owning/operating a dental clinic (marketing, equipment, technology, personnel, etc.) from the actual provision of dental services (treatment of oral diseases), the dental practice can run more efficiently allowing the dentist to provide more focused patient care and enhanced treatment. There are many different DSO models, but the most typical model involves a management corporation providing equipment to a dentistry professional corporation along with business and administrative support services, such as leasing space, human resources, marketing, patient scheduling and financial management. Importantly, the regular corporation does not interfere with the dentist’s clinical judgment.

You only have one chance to sell, so you need to do it right. DSOs are sophisticated, have vast resources and much more experience with buying practices than you have with selling. Transactions with DSOs are never a straightforward sale. There are many legal, accounting, tax and due diligence particulars involved in every deal as well as issues you likely didn’t plan for (e.g. the sale structure the DSO will require). Before starting negotiations with any DSO, you need to equip yourself with the right legal team to protect yourself. With DMC, you can rest assured that we have experienced the nuances and negotiations before and will actively protect your rights and promote your goals at every stage.

Like dentists, no two DSOs are alike. When deciding whether to join or work with a DSO you need to consider not only the culture of the company but also the terms of the contract you will be presented with and what you are signing up for. Often there will be fine print that can significantly affect your day to day practice and future opportunities. By properly negotiating the associate agreement, you can pre-empt issues before they arise and insulate yourself from potential adversity. We’ve seen all types of associate arrangements and agreements, whether the associateship comes from the sale of a practice or the position was applied for directly, which has given us the unique understanding necessary to assist you in negotiating the best terms for your future working relationship.