Several new DSOs have emerged in recent years with unique operational models and growth strategies to support their networks and recruit dentists.
Here is an inside look into three unique DSOs:
Rev One Dental
REV One Dental launched with its first set of acquisitions in April. It is the first DSO to have a regional footprint majority-owned by its founding dentists. Another unique component of REV One Dental is that the organization is funded entirely by dentists.
CEO Brady Frank, DDS, told Becker's he launched the DSO to support the many dentists who want to be the majority shareholders of their organizations.
"These doctors have chosen to be leaders and a lot of our acquisitions and growth will be related to recruiting new dentist partners in a DSO that is not backed by private equity but instead backed by our own fund, which is 100% funded by dentists, so the financing source is also a fund made up of dentist investors, which is probably the most unique part of the DSO," he said. "Most DSOs are private equity-backed or blue chip-backed. This is backed by a fund that is funded by actual clinical dentists."
Cal Dental USA
Cal Dental, which launched in 2015, was ranked this year as one of the fastest-growing companies by the Financial Times, experiencing an absolute growth rate of 96% and nearly doubling its revenue between 2019 and 2022.
One strategy that sets the company apart from its competitors is the company's growing use of sports industry partners. It recently added two former NBA players as partners of its practices, Lamar Odom and Kendrick Perkins.
The DSO's vice president, James Jones, told Becker's the company plans to use this strategy more to support its practices and give back to the community.
"Our partnerships with NBA players are a new but strategic initiative. I've always wanted to merge entertainment and sports with the dental industry, similar to Jay-Z and Snoop Dogg's venture capital endeavors," he said. "As someone who is half Black and Latino, I love showing kids that you don't need to be a basketball player or rapper to be cool. You can excel in business too. When we find partners like Lamar Odom who are committed to making a change in the community, we create win-win situations for everyone involved."
Smilebliss Orthodontics
A key component of Smilebliss Orthodontics' operational model is that the company does not acquire its practices.
Angela Weber, president of Smilebliss Orthodontics, said the company's growth since its 2021 launch reflects independent orthodontists' search for something different as they deal with post-COVID stressors, such as hiring and retaining staff.
"Smilebliss' market launch really struck at a good time when the market was prime for support like this," she told Becker's. "It's a three-year contract and a 5% fee, so we have skin in the game to help a practice grow, and we know how to do that. Our operational model and brand are consistent so that we can provide a well-worn path to success. Growth predictors are off if every practice a DSO acquires is doing things differently. Smilebliss has a more predictable model for growth."