Strategies to Scale a DSO in 2023

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Strategies to Scale a DSO in 2023
A new year often brings new fervor, new ideas,
and new growth. The best time to scale a DSO is
now, especially if your practice is operating
successfully and booking patients at max
capacity. As you strategize for a year of growth,
here are some tips from our team of
experts. Use Data to Scale a DSO Growing a DSO
wont come from looking into a crystal ball or
chasing a gut feeling. Theres a far more
effective strategy than wishful thinking that
will put you in the drivers seat using good
data to make informed decisions. A data-driven
DSO starts with a leadership team that takes an
interest in what moves performance and how to
use that data to help employees succeed. Your
organization should be able to improve outcomes
on all the fronts youre measuring and have a
higher
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• likelihood of success over time. Here are a few
  key areas to focus on when thinking about data
• The quality of data going into the system. The
  type of data you put in is the type of data you
  get out. You can make sure everyone on the team
  understands their role and the need to properly
  input data.
• The practice management system your DSO uses.
  Good software will allow you to compare and
  contrast results from different offices,
  providers, and so on. It can also create
  dashboards and simplify the data to help you
  understand it.
• The key performance indicators (KPIs) tracked
  over time. As we say at Skytale, You cant
  manage what you dont measure. The best KPIs
  measure patient care, cost, and cash.
• The decisions you make using the data you have.
  This is where those formula- over-feeling
  decisions come in. Now that you have historical
  data and KPIs showing potential areas for
  improvement, you can make tweaks and pull
  different levers. And if youve faced a certain
  issue before, you can check what decisions were
  made and how they performed.
• Data functions as the headlights of the
  organizationit allows you to see whats coming
  down the road. Otherwise, its like driving in
  the dark. If your data needs work, start
  tackling that as soon as possible with your
  leadership team so you can be ready to scale up!
• You can learn even more about using data to drive
  and scale a DSO on our latest podcast with James
  Turcott, Eric Pastan, David Wilson, and Greg
  Mahoney! Click here to listen.

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• Improve Case Acceptance
• Many practices pour dollars into marketing and
  acquiring new patients to scale their
• business. And while this might be a helpful
  method, its equally or more important to focus
  on your relationships with current patients.
• Here are a few reasons why repeat patients might
  be even better than new patients
• Current patients spend more.
• Current patients are easier to sell to and have a
  higher chance of converting.
• Current patients cost your business less than new
  patients.
• Current patients refer 50 more people to your
  business.
• Current patients impact future profits more than
  new patients.

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• To translate this to your DSO, lets think about
  patient retention in terms of patient experience
  and case acceptance. Skytale has seen case
  acceptance grow from 43 to 96 when clients
  rework the strategic design of their patient
  experience. This might look like how patients
  are greeted by reception, how theyre handed off
  from hygienist to dentist and back to reception,
  and how treatment plans are presented.
• When it comes to presenting treatment, its more
  than an offhand offerits a sale. You can teach
  your staff how to categorize patients when it
  comes to accepting treatment. For example
• A Accepted immediately
• B Patient expresses commitment but wants to
  confer with someone else
• C No information is provided, patient wants to
  think about it
• D Represents a flat no
• These categories inform follow-up communications.
  Ultimately, if your DSO can retain current
  patients and sell more treatments to them, youll
  see the results in your bottom line.
• Consider a Partnership
• While a DSO partnership with a doctor can help
  scale a DSO, there are several
• important partnership considerations for owners.
  Its a long-term investment that calls for
  professionalism, patient care, and even a
  personality fit.

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• Collection rate partner compensation Higher rate
  of compensation in exchange for
• a buy-in.
• Profit sharing partner compensation Share of
  profits earned by the business.
• Stock purchase compensation Sell shares of your
  practice.
• Determine Your Strategy to Scale a DSO
• Part of your roadmap for scaling needs to
  consider how youll add more practices to your
  DSO. But whats the difference between de novo
  growth and acquisition?
• A de novo growth strategy is when a DSO scales by
  opening a new location from the ground up under
  the same brand. The leadership team will
  typically search for a new space, hire a new
  team, and market for new patients.
• An acquisition strategy is when a DSO purchases
  another existing dental practice. The DSO may or
  may not keep the practices existing brand. Its
  an effective way to hit the ground running, as
  the practice is already operating successfully.
• Scale a DSO With a Financial Consultant Like
  Skytale
• Are you a DSO owner ready to scale and grow? Why
  not take the next step with a financial
  consultant who can lead you through every step of
  the way?
• Skytale offers strategic consulting to dental
  clients with an appetite for growth. Wed love
  to hear about your goals and workshop how we can
  help you get there. Get in touch today to start
  the conversation!