Inflation could be driving DSOs to place more emphasis on creating value within their network, according to Adam Richichi, CEO of Danbury, Conn.-based Archway Dental Partners.
Dental Associates of Connecticut built on its 53-year legacy by launching Archway Dental Partners in January. The dental partnership organization aims to partner with dentists across all specialties in the Northeast.
Mr. Richichi recently spoke with Becker's to discuss how DSOs are shifting strategies this year.
Editor's note: Responses were lightly edited for clarity and length.
Question: What are DSOs focusing most on this year?
Adam Richichi: I was on a panel with a few other New England-based CEOs in January and [the question was], what's the buzzword? Last year was artificial intelligence. [This year], we all kind of had the same buzzword, which is two words: value creation. There's a big focus of quality group practices across the country to focus more on where they provide value for patients, their team and their doctors.
The mistakes we've seen of late have been fast-buying DSOs that have not considered how they're going to create value and instead just look to gobble and gobble, and I don't think that works so much anymore in a high-inflation environment. Money's expensive and team members are expensive. You have to be able to do great stuff with what you have, not just tack it to the end. So that's furthering that belief that doctors should enjoy working with us. Does that mean we're getting on the best technologies, that we're getting the best clinical support and mentorship? Are we actually adding value to their career or are we not? When we talk about this next year, people are going to say that was probably the buzzword for 2024.