How the largest DSO is defining success in 2024

Heartland Dental has a busy agenda for the rest of 2024 to continue its success as the largest DSO in the U.S. 

The DSO currently supports more than 1,700 dental practices in 39 states and Washington, D.C.

Stephanie Townsend, Heartland Dental's senior vice president of operations, recently spoke with Becker's to discuss the company's growth and top priorities for this year.

Editor's note: Responses were lightly edited for clarity and length.

Question: ​​What are your DSO's top priorities for the rest of 2024?

Stephanie Townsend: Same office growth: Our focus is on driving growth in our existing offices by attracting new patients and achieving year-over-year growth. We're enhancing our partnerships with payers and exploring opportunities with Medicare Advantage in key markets. Success for us means collaborating with our supported doctors to help them reach their personal growth goals, which in turn fosters their leadership and the development of their practices.

Footprint growth: We are committed to expanding through both de novo and affiliations with like-minded doctors. Our growth pipeline, developed over the past 12 to 24 months, is focused on successful integration and supporting new offices and doctors in their communities to build local brand awareness. Our team continuously streamlines processes to provide world-class facilities in leading markets across the country.

Recruiting and retention: In the current labor market, investing in our people is more crucial than ever. We are committed to providing exceptional training, education and fostering a strong culture to ensure employee satisfaction.

Cost control and margins: Maintaining a healthy and sustainable business is always a priority. While it might not be the most exciting aspect, effective cost control and margin management are essential for success and profit sharing with our supported doctors.

Q: What are two or three key strategies in place to expand and grow your footprint?

ST: Organic and de novo growth and affiliation partnerships: We remain dedicated to expanding through organic growth and by building new offices, as well as forming affiliations with like-minded doctors. This time of year, many doctors consider transition strategies, and new graduates often seek opportunities in de novo offices.

Mentorship and education: We highlight our strong network of mentors and world-class Heartland Dental University education programs. These resources ease the transition into a DSO for new doctors and support their early career development through clinical and leadership programs.

Analyzing population shifts: We continuously study population shifts across the country, particularly post-COVID, to identify underserved communities and expand our reach where there is a high demand for dental services.

Q: What are the biggest challenges facing DSOs right now?

ST: Cybersecurity: The recent CrowdStrike incident highlighted the critical importance of cybersecurity. Fortunately, our IT and operations teams were well-prepared, enabling 90% of our practices to be operational by Monday morning, ensuring patient care continuity. This success is due to constant training and preparation. The strength and scale of our teams, along with their deep operational and support knowledge, are invaluable in such situations.

Challenging labor market: Recruiting remains a significant challenge, especially in the latter half of the year after graduating classes have been placed. We are focusing on diversifying our recruitment efforts across different markets and leveraging relationships along with our world-class recruiting team to attract top talent.

Technology integration: We are actively exploring AI and Curodont to enhance the quality of dental care our doctors provide. These technologies offer diagnostic support and boost doctors' confidence in treatment planning, acting as a valuable second opinion.

Industry competition: With many DSOs in the market, there are options to suit everyone's needs. This competitive landscape, along with payer challenges and the tight labor market, adds to the complexity.

Q: Some DSOs are preparing for more activity during the second half ahead of predictions for a more optimistic economy. Is this something you are following closely?

ST: Yes, we are closely monitoring economic indicators, including interest rates. While we stay informed about these trends, our primary focus remains on our core values. These values drive our business success and support our doctors through various economic conditions.

We've worked to be adaptable in response to economic fluctuations by investing in timeless, evergreen values. Our goal is to help patients afford the treatment they need, even in a tighter economy with less discretionary income. To achieve this, we are creating opportunities and awareness for financing and savings plans outside traditional dental insurance, helping patients bridge financial gaps.

Q: What do you think DSOs will need to be successful and finish 2024 strong?

ST: Narrow focus and stay the course: It’s important to align around your key priorities for the rest of the year and simplify your approach for operators and support for doctors.

Invest in retention and education: Focus on retaining your staff and investing in their ongoing education.

Mentoring programs: Develop strong mentoring programs for supported doctors to foster their growth and development.

Build capacity through hygiene: Enhance capacity to serve new and recare patients through hygiene services, which are vital for maintaining a successful and productive clinical schedule for doctors.

Q: What are the top trends you are following now?

ST: AI utilization: While AI is a hot topic, its effective utilization is crucial. AI can play a significant role in co-diagnosis and improving team efficiency.

Enhanced benefits for the 65+ population: Monitoring how the 65+ population is navigating enhanced benefits and the implications for dental care.

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