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In this episode, hosts Bob Spiel and Nate Williams focus on the impact of Dental Support Organizations (DSOs) on the dental industry and their mission to dissuade dentists from selling their practices to DSOs. They address various aspects of this issue in three parts:
1. Bob and Nate emphasize the difference between wealth as cash and true wealth, which they define as owning productive capacity, particularly in the context of dental practices. They discuss the risks associated with selling a dental practice, such as rapid depreciation in value when the dentist is no longer actively involved.
2. Bob and Nate explore the factors contributing to the rapid growth of DSOs, including government funding during the COVID-19 pandemic, low interest rates, and surplus capital- seeking investment opportunities. They share a personal anecdote about a dentist who chose not to sell his practice to provide his son with an independent dentistry opportunity.
3. Bob and Nate delve into the tactics used by DSOs to entice dentists into selling their practices, such as offering equity in the buying DSO and recruiting influential doctors to create network effects. They express concerns about doctors being complicit in the consolidation of power by DSOs and debunk the myth that selling to a DSO benefits a dentist in the long run.
Overall, Bob and Nate encourage listeners to share their message with colleagues and friends in the dental industry, raising awareness about the potential downsides of selling to DSOs and the importance of considering the long-term implications. With any questions, please email us at questions@justsaynotothedso.com
