The DSO landscape has boomed the last couple of years and with so many new players now in the market, it is crucial for businesses to stay flexible and adapt to this new landscape. As acquisitions eventually begin to slow down, business leaders may start looking internally to see where they can improve on processes that could otherwise impact further growth opportunities. Streamlining those operations is necessary to maintain a competitive edge in the face of an expanding market.
In a study published by the American Dental Association earlier this year, dentists were asked what their top challenges were looking ahead to the next six months. The top responses were workforce issues, reimbursement problems and increasing overhead. As DSO leaders, tackling these issues is necessary for the health of your organization and minimizing the effects of these issues means equipping providers and teams with the right tools to navigate them.
What is at the root of these issues?
Staffing issues still present a significant challenge for practices, as recruiting and retention have not recovered to pre-pandemic levels. Dental assistant and hygienist roles have been particularly difficult to fill, and this issue will likely persist as graduation rates for these programs have also decreased in recent years.
Although not as challenging as the aforementioned roles, survey respondents also found that administrative staff were also difficult to recruit. Shortages in back office and administrator roles should not be underestimated, as poorly staffed revenue cycle management (RCM) teams, for example, can slow down payor reimbursement processes, patient payment management or even oversight of in-house financing programs. These types of workforce issues can feed into economic considerations and risk factors for practices, worsening existing concerns about reimbursement and overhead costs
Tips for how DSOs can address challenges
Consider a third-party financial solution. Financing solutions, like Synchrony’s CareCredit health and wellness credit card, can help mitigate some of the pressures in-house staff may experience by helping patients manage payments. With practitioners already navigating other financial challenges, when a patient uses CareCredit to cover a service, providers receive payment in full within two business days, guaranteed. This leads to dental practices seeing decreased accounts receivable and fewer outstanding balances, which means smoother revenue cycle operations and less time spent billing.
Invest in a digital support system. If the main issues practitioners are experiencing are connected to internal finances and staffing, it may be worth exploring how digital integrations can help alleviate those burdens. New practice management software (PMS) or third-party solutions, including CareCredit, which is integrated into some of the most widely used PMS, can help practices streamline front- and back-end operations, lighten administrative workloads and improve the patient experience, all while alleviating some of the mental load existing staff may be experiencing.
Elevate administrative responsibilities. Taking administrative and billing tasks off the hands of staff means that their efforts can be redirected elsewhere, making room for managing other revenue cycle and administrative tasks. For DSO leaders, increased predictability in affiliates’ accounts receivable may also reduce the impact of delayed reimbursements or rising operational costs on profitability.
Building a comprehensive suite of support
DSOs can overcome current challenges by embracing strategic partnerships that address their most pressing needs. Integrating digital solutions that address workflow efficiencies, including CareCredit's flexible financing options, enables DSOs to mitigate staffing issues, optimize revenue cycles and alleviate financial burdens. This proactive approach empowers DSOs to navigate the evolving healthcare landscape, ensure exceptional patient care, health and well-being of staff and the long-term success of their affiliated practices.
To learn more, visit https://www.carecredit.com/dentistry/