Failure to invest in new technology could hold DSOs back from future growth as dentists and patients flock to companies with the most innovative care.
Paul Reda, the CEO of Pittsburgh-based North American Dental Group, recently spoke with Becker's to discuss the role of technology in dentistry today and the biggest challenges facing DSOs in 2025.
Editor's note: These responses were lightly edited for length and clarity.
Question: What do you think will be the biggest challenges for DSOs this year?
Paul Reda: I think both doctor and hygiene attrition will continue to be burdensome for DSOs. DSOs that have equity or JV models will be insulated a little bit more from it. You need to keep hygienists because, ultimately, most patients go to a dental practice for the hygienist. They get their cleanings, and then there's a dentist, so it's a necessity for a healthy practice. You need to keep having cutting-edge technology. Patients want to have good technology. They want to know they're getting the best care possible.
As a support organization, we need to better service our providers. We need to make sure they have the tools they need, they have the supplies they need, that we're collecting the revenue and that they also have a good environment, they feel valued, [and] they don't feel just like they're a means to an end. They feel like they're a valued part of a team. They want that reciprocity. Also, obviously, we need to keep up the quality of care. That's number one, and that's why we're investing in technology such as Overjet, Perio Protect, Curodont and CBCTs at every practice.
Q: Could not investing in technology be a deal breaker for DSO success?
PR: I think it's going to be necessary for long-term success. It may not be in the short term, like six to 12 months, but what's happening now is dentists are coming out of school — "Do you have a CBCT?" "Do you have this technology?" "This is what we've learned in dental school." That's what they expect, so you need to be able to offer that. Also, now with Yelp [and] Google, people go online and look at dentists. "Oh, the practice was old. They didn't have this technology. I had to take impressions versus using a scanner." This is all out in the open. Everything is very public, so you need to do everything the right way. You need to act with integrity, and you need to have the best technology. That's something we're committed to offering.