DSOs are eyeing new opportunities for scalable growth this year, while also continuing to invest in initiatives that have brought them success in the past.
Here are three key trends driving DSO growth this year:
Artificial intelligence
Becker’s has reported on AI rollouts across several DSO networks, including Aspen Dental, Coast Dental, DECA Dental Group, and PDS Health. Many executives agree that technology investments that enhance patient care and improve practice efficiency will be key factors separating top dental groups.
“Five years from now, the most successful dental organizations won’t just be the ones with the best technology, but the ones who know how to integrate AI without losing their humanity,” Stef Simich, director of people development at Lone Peak Dental Group, told Becker’s. “When AI is paired with human judgment, empathy and accountability, it creates sustainable growth, healthier teams and consistently better care.”
De novos
Several DSOs are opting for de novos over acquisitions as a way to maintain consistency and growth across their brands. Smile Partners opened its first de novo office earlier this year as part of a new growth strategy that breaks away from its traditional approach involving practice acquisitions and partnerships.
Park Dental Partners said it plans to use funds raised through its recent initial public offering to support various revenue-building initiatives, including opening de novo offices in existing markets.
PDS Health also continues to stick to its long-term growth strategy involving de novos, with plans to open more than 100 practices in 2026.
Acquisitions
Even with increased attention toward de novo offices, DSO executives are still expecting an increase in acquisitions this year due to shifting economic conditions.
Alisa Ulrey, COO of U.S. Oral Surgery Management, told Becker’s in January that oral surgery remains an attractive field and that she expects increased M&A activity this year. Mortenson Dental Partners CEO Bill Becknell also told Becker’s that the company plans to continue building on the growth the DSO achieved last year through its acquisitions.
“I believe the opportunities for DSO growth will continue to escalate as some private practices continue to look for support through these challenging times and capture the benefits of scale DSOs can bring,” Mr. Becknell said.
