Dentist-oriented organizations can maximize their growth potential by using consumer-centric strategies.
FREMONT, CA: The dental market presents a wealth of opportunities for growth and development, driven by technological advancements and a focus on enhancing the consumer experience. With a market size exceeding USD 100 billion and a steady annual growth rate of over 5 percent, dentistry has proven its resilience even in the face of pandemic-induced fluctuations in demand. As the industry continues to evolve, consolidation, professionalization, and consumerization are key trends shaping its future.
The dental market is characterized by its large size, rapid growth, and fragmentation. While some regions in the United States have a higher percentage of dental service organizations (DSOs) affiliations or more dentists per population, there remains ample room for consolidation and de novo growth across almost every geography. Currently, the dental industry is only 15 to 20 percent consolidated, with less than 10 percent under private equity ownership. This indicates a significant opportunity for further consolidation and scale creation within the market.
DSOs play a pivotal role in driving this consolidation and professionalization trend. Dentists are increasingly interested in affiliating with DSOs due to their benefits. By joining a DSO, dentists can focus on providing high-quality patient care while reducing their administrative burden. They gain access to economies of scale in purchasing and payor contracts, expedite the repayment of educational debt, and find a pathway to equity ownership.
Maintaining an exceptional dentist culture is critical for DSOs to thrive and provide value. A strong dentist-forward culture ensures high dentist satisfaction and retention levels, leading to stable top-line growth for the DSO. Clinically driven DSO platforms enable dentists to concentrate on their expertise and patient care, fostering a trusting and supportive partnership. By prioritizing continuing education efforts and providing autonomy, DSOs can achieve above-market retention rates among dentists.
