Strategies to Scale a DSO in 2023

1. StrategiestoScaleaDSOin 2023 A newyearoften bringsnewfervor,newideas,andnew growth. The besttime toscalea DSOisnow,especially ifyourpracticeisoperatingsuccessfully andbookingpatientsat max capacity. Asyoustrategize forayearof growth,hereare some tipsfromourteamof experts. Use Data toScaleaDSO GrowingaDSOwon’t comefromlookingintoacrystalballorchasingagut feeling.There’s afarmoreeffectivestrategy than wishfulthinkingthatwillput youinthe driver’sseat— usinggooddatatomakeinformeddecisions. Adata-driven DSOstartswithaleadershipteamthat takes an interest in whatmoves performanceandhowtousethat data tohelp employeessucceed.Your organization should beable toimproveoutcomeson allthe frontsyou’re measuringandhave ahigher

2. likelihoodof success overtime. Here area fewkey areastofocuson whenthinkingabout data: • The quality of data going into the system. The type of data you put in is the type of data youget out.Youcanmake sure everyone on theteamunderstandstheirrole and the needtoproperly inputdata. • Thepracticemanagement systemyourDSOuses.Goodsoftware willallowyou tocompare andcontrast resultsfromdifferentoffices, providers, andsoon. Itcan alsocreatedashboardsandsimplifythedatatohelp youunderstandit. • Thekeyperformanceindicators(KPIs)trackedovertime.AswesayatSkytale, “You can’t manage what you don’t measure.” The best KPIs measure patient care, cost,andcash. • Thedecisionsyoumakeusingthedatayouhave.Thisiswhere thoseformula- over-feelingdecisions comein.Nowthat youhave historicaldata andKPIsshowing potentialareasforimprovement, youcanmaketweaksandpulldifferentlevers. And if you’ve faced a certain issue before, you can check what decisions were made and howtheyperformed. • Data functions as the headlights of the organization—it allows you to see what’s coming down the road. Otherwise, it’s like driving in the dark. If your data needs work, start tacklingthat assoon aspossiblewithyourleadershipteamsoyoucan be ready toscaleup! • You canlearneven moreabout usingdatatodrive andscale aDSO onourlatest podcast with James Turcott, Eric Pastan, David Wilson, and Greg Mahoney! Click here tolisten.

3. ImproveCaseAcceptance Manypracticespourdollarsintomarketingandacquiringnewpatientstoscale their business. Andwhilethis mightbe ahelpfulmethod, it’sequally ormoreimportanttofocus onyourrelationshipswithcurrentpatients. Hereareafewreasons why repeat patientsmight be evenbetterthannewpatients: Current patientsspendmore. Currentpatientsareeasiertosell toandhaveahigherchanceof converting. Currentpatientscostyour businesslessthannewpatients. Currentpatientsrefer50%morepeopletoyourbusiness. Currentpatientsimpactfutureprofitsmorethannewpatients.

4. TotranslatethistoyourDSO, let’sthinkabout patientretention in termsofpatient experienceandcaseacceptance. Skytale hasseen caseacceptance growfrom43%to96% when clients rework the strategic design of their patient experience. This might look like howpatientsare greetedbyreception, howthey’re handedofffromhygienist todentist andbacktoreception, andhowtreatmentplansarepresented. • When it comestopresentingtreatment, it’smorethanan offhandoffer—it’sasale.Youcan teachyourstaff howtocategorizepatientswhenit comestoacceptingtreatment.For example: • A:Acceptedimmediately • B:Patientexpressescommitmentbut wantstoconferwithsomeoneelse • C: Noinformation isprovided,patientwantstothinkabout it • D:Representsaflat“no” • Thesecategoriesinformfollow-up communications. Ultimately, ifyourDSOcanretain current patients and sell more treatments to them, you’ll see the results in your bottom line. • ConsideraPartnership • WhileaDSOpartnershipwithadoctorcan helpscaleaDSO,thereareseveral • importantpartnershipconsiderations forowners. It’salong-terminvestmentthat callsfor professionalism,patientcare,andeven apersonality fit. • As you’re seeking a partner, start by defining their limits of control, responsibility, and financialcommitment. Considerwhetherapotentialcandidate is someoneyoucouldwork withanddependonforyearstocome.Andwesuggest stayingopen totheirinput—change canoften bewelcomeandrefreshingforapractice! • Therearealsoseveraltypesof compensation toconsider:

5. Collectionratepartnercompensation:Higherrate of compensationinexchange for • abuy-in. • Profit sharingpartnercompensation: Shareofprofitsearnedby thebusiness. • Stockpurchasecompensation: Sellsharesofyourpractice. • Determine YourStrategy toScaleaDSO • Part of yourroadmapforscalingneedstoconsiderhowyou’lladdmore practicestoyour DSO.But what’sthedifferencebetweendenovogrowthandacquisition? • Adenovogrowthstrategy iswhenaDSOscalesby openinganewlocation fromthe ground up underthe same brand.The leadershipteamwilltypicallysearchforanewspace, hirea newteam,andmarket fornewpatients. • An acquisitionstrategy iswhenaDSOpurchasesanotherexistingdentalpractice. TheDSO may ormay notkeepthepractice’sexistingbrand. It’saneffectivewaytohit the ground running,asthepracticeisalready operatingsuccessfully. • ScaleaDSO WithaFinancialConsultantLikeSkytale • Are you a DSO owner ready to scale and grow? Why not take the next step with a financial consultant whocan lead youthroughevery step oftheway? • Skytale offers strategic consultingto dental clients with an appetite for growth. We’d love to hear about your goals and workshop how we can help you get there. Get in touch today tostart theconversation!