🚀DSO Growth through acquisition
Large dental groups often measure their growth through acquisition. This is an undeniably effective strategy, because by acquiring stable and mature dental practices, a DSO has the ability to access a vast database of new patients and a portfolio of skilled and valuable dental practitioners, all while scaling their DSO footprint across new territories.
Although effective, this investment should only be considered as one part of a growth strategy for ambitious dental groups – not worth much without an accompanying strategy. When supercharging their footprint, DSOs also have to navigate difficult organizational and structural problems. Dental groups will need to accommodate new systems, new ways of working and new calendar integration struggles. These are some core blockers to efficiency; and ultimately, when a business talks about blockers to efficiency, this refers to unrealized potential revenue.
🚀Centralization & technology integration
This leads to the second core step of growth: tech integration and effective tracking of prospective patients. The dental industry, by nature of its traditionally ‘local’ history, means that it hasn’t grown with the rest of the healthcare industry in terms of technology and system integration. Through growth comes an element of decentralization, but to optimize growth, each practice should have their patient and prospective patient management systems integrated at a central level to ensure accelerated growth is scalable in the long term.
Surprisingly, the evolution of the audiology sector is a very interesting parallel to dentistry, as dentistry very much echoes where audiology was a decade ago. In the US, around 35 million Americans suffer from hearing loss, and around 70 to 85% of cases are untreated. Ten years ago, the audiology sector couldn’t rely on its database of patients to support its ambitious growth, despite having gone through a similar period of major group acquisitions over 20 (very busy) years.
When MVF, an ambitious customer generator and fast-growing technology company, began working within the audiology sector, the major groups realized the opportunity for dramatic growth and began building out efficient high-capacity call centers, all while purchasing tech stacks to drive growth and track the major revenue contributors. This happened with the support of strong private equity investment, much like the dentistry sector is seeing now. As they centralized; these major groups prioritized the use of digital marketing platforms to drive high value patients to hit ambitious targets, fill appointment slots to maximize clinicians’ times, and ultimately satisfy investor demands.
This is where MVF believe the 3 steps of rocket fuel for private healthcare groups come into play. These steps are:
- Core acquisition strategy to improve coverage of clinics
- Centralization without losing the “patient-first” mentality
- Supercharging growth through driving higher value patients and maximizing surgeon time
🚀Acquiring higher value patients at scale
Point three is where the growth rocket takes off. Once more, echoing the hearing industry, over 156 million Americans are missing at least one tooth. Prioritizing strategies to drive patients for implants and other high value services will naturally improve the bottom line of each new acquired clinic. This, of course, will happen naturally alongside generic patient acquisition, and traditional brand marketing strategies. However, by targeting those that are primed for higher value procedures with a high-quality service, you provide a need for those patients that are shopping around for more serious dental procedures.
What does high value patient acquisition look like? Check out how one major European DSO 5x’ed their growth through this strategy with MVF Global.
Don’t underestimate the power of consolidation. The centralization and optimization of processes, through the use of tech (sophisticated patient focused CRMs) and a targeted high value patient acquisition strategy, will allow you to supercharge your revenue growth and set your DSO apart from the rest.
MVF provides a scalable source of new patients for dental services organizations. Our technology and world class cross-channel marketing teams help connect active patients with dental practices looking to scale, providing quality appointment ready opportunities directly to our clients on a pay-per-lead customer basis.
Get in touch to see how you can accelerate your growth.
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