The DSO field has had an active year so far, with many companies investing in several key areas to fuel growth and enhance patient care.
Here are four areas that DSOs are investing in this year:
Artificial intelligence
Two of the largest DSOs partnered with artificial intelligence companies this year: Heartland Dental and Dental Care Alliance.
Heartland Dental and VideaHealth also completed the largest dental AI rollout in history this year after the DSO added VideaHealth's technology to its network of more than 1,700 practices. Meanwhile, Dental Care Alliance most recently partnered with dental AI company Overjet to implement AI technology across its network of more than 400 practices.
Other DSOs that have added AI technology to their networks this year include Riccobene Associates Family Dentistry and Cordental Group.
Services
Several DSOs have added new dental services to expand their networks and improve patient care, including Dental Care Alliance, which partnered with EMS Dental to become the first large-scale DSO to add guided biofilm therapy to its network. Cal Dental USA also entered the orthodontic market with its first acquisition.
Robert Kolts, DDS, is senior vice president of clinical affairs at Premier Care Dental Management, told Becker's earlier this year that the DSO would continue to invest in saliva testing to help determine a patient's susceptibility for periodontal disease and provide oral cancer screenings.
DSOs have also continued to invest in medical-dental integration efforts. Eastern Dental teamed up with BlueSleep, a specialty care platform, to provide dental patients sleep apnea and snoring solutions.
Acquisitions
Becker's has reported on a handful of DSOs that have gained new capital this year to fuel future growth. While the amounts in these recent deals vary, at least three DSOs have earned more than $100 million: Allied OMS, which secured a $116 million credit facility, The Smilist, which closed on a $285 million debt facility, and Gen4 Dental Partners, which received a $315 million credit facility.
These companies plan to use these additional resources to fund both organic and inorganic growth opportunities, including network expansions and adding services
Henry Moomaw, CFO at Irving, Texas-based U.S. Oral Surgery Management, said these new investment deals could be a sign that DSOs are gearing up for a more active market.
Staffing
Building up the dental workforce and supporting new entries into the dental field have been core focuses for several DSOs this year.
Benevis and Dental Care Alliance both launched initiatives to support veterans transitioning into civilian jobs through the Department of Defense's SkillBridge program. Earlier this year, The Aspen Group partnered with Women Employed and Midwestern Career College to launch an initiative to help low-income women join the dental workforce.
PDS Health also continued its measures to support dental assistants by awarding more than $45,000 in scholarships to dental assisting students. Additionally, Heartland Dental recently led investments in Kwikly Dental Staffing's series A fundraising round.