The State of Dental Procurement in 2022 – A Global Survey of DSOs

Group Dentistry Now is the official media partner for Open Room Events’ DentalForum USA’s annual meeting. This event is Open Room’s largest event in the world and is unlike any other event in the DSO space. DSOs and emerging dental groups are matched with vendors and are given 15 minutes to discuss synergies and opportunities before the next 15-minute meeting takes place. The event is fast paced, highly productive and gives both DSO and vendors multiple networking opportunities. This year the DentalForum USA event is taking place at the Hyatt Regency Scottsdale Monday, September 12- Tuesday, September 13.

For three years, Group Dentistry Now and Open Room have surveyed DSO DentalForum attendees and DSO and emerging dental group subscribers of Group Dentistry Now on ‘The State of Dental Procurement.’  Bill Neumann shared the results during the meeting. (Review the 2019 survey HERE. Review the 2020 survey HERE.)

  • The survey was made up of 12 questions
  • 60 DSOs and dental group practices responded: 32 from North America, 17 from Europe and 11 from APAC & ANZ.
  • At least 7,800 dental practices were represented in this survey.
  • The average time to complete the survey was approximately 6 minutes and 30 seconds 

Here are the results of the survey:

1.) How many dental practice locations does your DSO / dental group currently have? 

North America (32 responses):

Europe (17 responses):

APAC & ANZ (11 responses):

2.) Who makes the decisions for what products become “preferred” or become part of your formulary? [Check all that apply]

North America (32 responses):

Other responses:

  1. Logistic department and all the clinical coordinators are working together.
  2. It’s a joint process between a selected clinical board and Purchasing department.
  3. In accordance with the Clinical Board
  4. Committee of clinicians in collaboration with purchasing manager.
  5. Dental consultant (me)
  6. Supply chain and compliance officers.

Europe (17 responses):

  • Other response is CFO.

APAC & ANZ (11 responses):

3.) How many people at your dental group are involved in the purchasing / procurement process? [Check all that apply]

North America (32 responses):

Respondent’s comments:

  1. Scientific Director, chair assistant and Clinical Board decide on our DSO’s products
  2. 10-20 soley dedicated individuals, with 30-50 individuals that help as well with one off items or tasks.
  3. Direct and indirect spend with category managers under each type spend.

Europe (17 responses):

Respondent’s comment: Our central organization for sourcing is three people plus clinical board (selected handful of dentists.) Local staff of approximately 1000 people.

APAC & ANZ (11 responses):

4.) How long is the pilot / review process for your practices to evaluate new products before deciding if they become part of the formulary?

North America (30 responses):

Respondent’s comments:

  1. We give our doctors complete autonomy on critical clinical products.
  2. It depends on the product.
  3. We test the approved product in a limited number of clinics where our best doctors work.
  4. It depends on the products. Some are approved immediately; some have a year process.
  5. It depends on what it is. Some products are approved instantly by our clinical procurement team. Other larger relationships have taken nearly a year to solidify.
  6. Depends on the item. Mostly equipment is piloted up to 90 days. 510k cleared consumable supplies aren’t piloted. New items we may do a simple clinical evaluation but real look at the financial impact.
  7. Depends on the product type. If it is a non-clinically sensitive item, those evaluations can be completed in less than a month. If they are clinically sensitive products, those typically take between 1-2 months to fully evaluate.

Europe (16 responses):

Respondent’s comments:

  1. We only select well-established products with significant volume.
  2. Depends on the product.

APAC & ANZ (11 responses):

5.) When purchasing a product or service, rank the following by importance [1 being very important – 6 being least important] Note: The higher the weighted number the more important to the DSO and the more DSOs ranked that item #1.

North America (32 responses):

Europe (17 responses):

APAC & ANZ (11 responses):

6.) Do you offer clinicians multiple product offerings within a category? i.e. Two or more types of composite, etc.

North America (32 responses):

Europe (17 responses):

APAC & ANZ (11 responses):

 

7.) Rank the list of ways you prefer a vendor to introduce their products and / or company to your DSO? [1 being best way to contact you, 6 being worst] Note: The higher the weighted number the more important to the DSO and the more DSOs ranked that item #1.

North America (32 responses):

Europe (17 responses):

APAC & ANZ (11 responses):

8.) If you have preferred products or a formulary, approximately what is the percentage of clinicians that adhere to the formulary.

North America (32 responses):

 

 

Europe (17 responses):

 

 

 

APAC & ANZ (11 responses):

 

9.) What concerns do you have about the near-term future of your organization’s success and growth? Check all that apply.

North America (31 responses):

 

Europe (17 responses):

 

APAC & ANZ (11 responses):

Q 10.) When deciding on new technology or product how would you describe the type of ‘adopter’ your DSO is.

North America (31 responses):

Respondent’s comments:

  1. We test the new product in some clinics. on technology instead we guide the mental change of our doctors and our clinics.
  2. All of the above. Although we pride ourselves as innovators or early adopters, we sometimes like to sit back and observe how other adapt, to see if it may make sense to our business model of decide against it.

Europe (17 responses):

Respondent’s comment: We have all alternatives in the company. The majority is small clinics and is therefore cost sensitive.

APAC & ANZ (11 responses):

Q 11.) What new products and/or technology are you evaluating in 2022?

North America (24 responses):

  1. AI-technology providers, aligner providers, implant companies, all providers that reach better treatment and service quality with efficiency.
  2. Laser usage
  3. AI, Robotic Surgery, Chairs, Lights, Delivery Units, Cabinetry
  4.  AI technologies for better efficiencies and increased profitability via less missed opportunities with existing clients
  5.  Improve more digital solutions
  6. Zirconium Plasma rich in growth factors Doctors’ adherence to scanner use of laser in other treatments
  7. Software
  8. Facial scanners
  9. Implement the insertion of scanners and CT scans in the rest of our clinics
  10. Skeletal expansors, intra oral scanners
  11. Digital workflow
  12. Dental AI
  13. New technology and equipment vendors
  14. AI voice activated charting and ai mage reading
  15. 3D Printing technology
  16. Digital dental labs, overheat
  17. Everything digital
  18. AI
  19. Implants, 3D Printing, Voice recognition, compliance (emergency drugs auto-renewal), surgical, and IV supplies
  20. 3D printing
  21. Scanning
  22. Advanced x-ray imaging, use of AI in imaging, 3D printing
  23. Artificial Intelligence, Lab SaaS, Implant System
  24. 3D printing, Utility room equipment, Autoclaves

Europe (11 responses):

  1. AI, prevention tools for implant failure
  2. Digital scanners
  3. implant guide systems, intraoral scanners
  4. scanners & data management
  5. full digital solutions
  6. iOS
  7. Technology to allow us to become paper free
  8. All related with digital flow, scanner and aesthetics
  9. Aligners for GPs, products that we can sell online
  10. Continuous process to equip clinics with all possible technology (3D, Scanners, 3d printers)
  11. Digital printing of dentures AI Tech

APAC & ANZ (9 responses):

  1. Digital Scanning Zirconia Blocks Whitening products Handpieces OPG RVG.
  2. 3D printing
  3. Treatment Planning Software Guided Surgery
  4. Software
  5. Not applicable for this year
  6. Toothpaste & intra-oral cameras
  7. Numerous, e.g., 3D printers
  8. Implant related
  9. Whitening tool

Q 12.) What can vendors do to provide additional value for your dental group?

North America (23 responses):

  1. We believe in a true partnership. Yes, pricing is important, but we need our vendors to provide premium customer support to the company and our locations.
  2. Listen to our needs. Financial, Logistics, Recruiting, Employee retention, Patient referrals, Patient satisfaction, Help with State and Federal legislation, EDI connectivity, CE courses and supporting our Learning and Development programs and leadership Retreat sponsorship, Community Service and international Mission’s, Hands on Training support.
  3. Transparent pricing
  4. Offer more resources that increase the overall efficiency and profitability within our practices. Lunch and learns. Local CE’s. Doctor development series for new grads. Etc.
  5. Give us good digital solutions, help us to improve dental protocols
  6. Training support and support to the clinician on the spot
  7. Chair side support with new product intro
  8.  Free CE, Lunch & Learns, Ideas on how to use their products to increase revenue, samples of newly released products, sell direct to our offices (not through distribution), ask how they can drive value/savings for our organization, etc.
  9. Event sponsorship, Present cost mitigation strategies WITH any price increases, understand our groups culture and philosophy in order to connect their role with our needs.
  10. Technology
  11. Offer direct purchasing, without utilizing distributors.
  12. More digital innovations for onboarding patients and making appointments etc
  13. Support, Clear plan for implementation or expanded adoption strategy (if we’re an existing customer)
  14. They should adapt to the real situation of the Company
  15. Formation and support to the clinics
  16. Clear plans for implementation and support if we are an existing customer.
  17. Through innovation
  18. Help us control costs
  19. Transparency and direct to consumer products
  20. Better practice support and product implementation nationwide
  21. Conference events, CE, educational webinar outside product promotion
  22.  Specific DSO solutions that help our needs. Not just bundling their current products and give it a DSO label. Real solutions to DSO needs.
  23. Maintaining the frequency of communication

Europe (11 responses):

  1. Present products that can replace products that include harmful chemicals and that are produced with in good working conditions.
  2. Clear group level reporting, capable of being split by practice Dedicated account manager Clear pricing and volume discount structures, electronic invoicing
  3. Training
  4. Better analysis to help us understand our usage and how we can get better
  5. Good support, preferred pricing.
  6.  Training & education
  7. Support for clinicians
  8. Provide training by any channel Supporting doctors in the clinic Help us to improve our brand image
  9. Better price, sponsorship for DSOs
  10. Technology and better prices
  11. Support us with people who have the growth of the business at the forefront.

APAC & ANZ (8 responses):

  1. Provide support and service
  2. Better prices, better support & training
  3. Beyond the usual expectations of providing solutions for clinical work and operational workflow, vendors can value add by thinking out of the box to increase opportunities for collaboration. In addition, it will be good if they can look into providing solutions that can help us scale.
  4. Proactive in providing new information on products
  5. Provide technical support
  6.  Treat us like a group and not a collection of independents
  7. Training and education
  8.  Good service/ backup / support

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