{"id":14847,"date":"2025-05-12T17:57:34","date_gmt":"2025-05-13T00:57:34","guid":{"rendered":"https:\/\/www.planetdds.com\/?p=14847"},"modified":"2025-05-12T19:31:40","modified_gmt":"2025-05-13T02:31:40","slug":"all-things-dso-navigating-the-great-uncertainty","status":"publish","type":"post","link":"https:\/\/www.planetdds.com\/blog\/all-things-dso-navigating-the-great-uncertainty\/","title":{"rendered":"All Things DSO: Navigating \u201cThe Great Uncertainty\u201d\u00a0"},"content":{"rendered":"\n

As the dental industry<\/a> settles into the second quarter of 2025, many leaders are still grappling with what Brian Colao calls \u201cThe Great Uncertainty,\u201d a prolonged period of market unpredictability driven by inflation, geopolitical unrest, and rising operational costs. Colao, director of the Dykema DSO Industry Group<\/a>, offered a comprehensive outlook on the current state of dental support organizations (DSOs<\/a>), private equity trends, and emerging technologies in a wide-ranging discussion that touched on everything from M&A headwinds to smart scheduling innovations.\u00a0<\/p>\n\n\n\n

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Watch the Webinar<\/a><\/div>\n<\/div>\n\n\n\n

Dental M&A Market Still in a Holding Pattern <\/h2>\n\n\n\n

While there was originally optimism for a rapid rebound in mergers and acquisitions (M&A<\/a>), Colao noted that external factors like global conflict and trade instability have continued to stall momentum. \u201cThe M&A market certainly did not jump-start in the first quarter,\u201d he said. \u201cWe\u2019re well into Q2, and I don\u2019t see anything imminent.\u201d <\/p>\n\n\n\n

However, Colao believes that the industry may soon shift into an acceptance phase. Rather than waiting for inflation or interest rates to fall, he anticipates buyers and sellers will begin pricing for the current economic conditions. \u201cEventually, people are going to say, \u2018This is the new normal,\u2019 and deals will start happening again,\u201d he said. <\/p>\n\n\n\n

Private Equity: Adapting to Market Realities <\/h2>\n\n\n\n

Many DSOs are operating under increasing pressure from private equity<\/a> partners to deliver returns despite market headwinds. Colao emphasized that people should not blame DSO executives for interest rates tripling or for the cost of labor skyrocketing.\u00a0\u201cMost executives I talk to are being extremely creative in how they operate under these difficult conditions,\u201d Colao said.\u00a0\u00a0<\/p>\n\n\n\n

While cost-cutting remains a necessary survival tactic, Colao cautioned that long-term success requires DSOs to focus on revenue growth. \u201cThere\u2019s a saying: You can\u2019t cut your way to profitability,\u201d he said. \u201cThe only way to truly grow is to increase EBITDA, and you do that through innovation<\/a>: new technologies, new business lines, and better operational models.\u201d\u00a0<\/p>\n\n\n\n

Automation and AI Transforming RCM<\/h2>\n\n\n\n

One area where Colao sees tremendous opportunity in automated revenue cycle management (RCM)<\/a>. Insurance verification and claims processing have long been major pain points, but technologies<\/a> like auto-adjudication, AI bots, and integrated eligibility tools are now reducing the administrative burden. <\/p>\n\n\n\n

\u201cAutomation is the big story of 2025,\u201d Colao said. \u201cIt\u2019s faster, more accurate, and cheaper. It allows DSOs to maximize every insurance dollar while redeploying staff to higher-value patient interactions.\u201d <\/p>\n\n\n\n

Many tools that once required multiple tabs to be open and manual data entry are now integrated directly into practice management systems. <\/p>\n\n\n\n

Smart Scheduling: A Game-Changer <\/h2>\n\n\n\n

Another technology capturing Colao\u2019s attention is smart scheduling, which optimizes appointment slots for higher-revenue procedures and offers patient-friendly self-booking features. \u201cIt\u2019s compelling when software can prioritize a crown over a cleaning without compromising the patient experience,\u201d he said. <\/p>\n\n\n\n

Smart scheduling also aligns with evolving consumer behaviors. \u201cYounger generations don\u2019t want to pick up the phone. They want to schedule online at 2 a.m., and these tools make that possible.\u201d <\/p>\n\n\n\n

Enhancing Patient Experience with Personalization <\/h2>\n\n\n\n

Even as automation takes hold, Colao stressed the importance of maintaining a human touch. Many platforms allow providers to customize automated messages for pre-appointment reminders, post-op instructions, or even aftercare follow-ups. <\/p>\n\n\n\n

\u201cIt\u2019s still a message from the doctor; it just goes out through tech,\u201d he explained. \u201cIt enhances the patient experience and strengthens the practice culture.\u201d <\/p>\n\n\n\n

Hygiene Shortages and Creative Solutions <\/h2>\n\n\n\n

The shortage of hygienists continues to impact DSO operations. Colao pointed to Arizona\u2019s new legislation allowing trained dental assistants<\/a> to perform certain hygiene functions as one controversial solution that\u2019s been introduced. <\/p>\n\n\n\n

He also noted that hygienists increasingly prefer gig-style arrangements, working in multiple offices through temp staffing platforms.\u00a0\u201cIt gives them more flexibility, but it raises questions about long-term sustainability and cost,\u201d he said.\u00a0<\/p>\n\n\n\n

Colao also highlighted emerging ADA resolutions aimed at addressing the hygiene pipeline: easing student-teacher ratios, allowing dental students to serve as interim hygienists, and licensing internationally trained dentists under specific conditions. <\/p>\n\n\n\n

Consumer Confidence: A Regional Concern <\/h2>\n\n\n\n

Economic uncertainty is also influencing patient decisions. Some DSOs are reporting declines in elective procedures like clear aligners and adult ortho starts. \u201cPeople aren\u2019t skipping visits when they\u2019re in pain,\u201d said Colao, \u201cbut they\u2019re postponing discretionary treatments.\u201d <\/p>\n\n\n\n

He emphasized that while individual markets are affected differently, overall dentistry remains one of the most resilient industries. \u201cEven with inflation and labor costs, dentistry is virtually recession-proof compared to other sectors.\u201d <\/p>\n\n\n\n

Strengthen Your DSO with Innovation <\/h2>\n\n\n\n

Colao expressed optimism for the future, especially as DSOs continue investing in tech and refining operations. He\u2019s particularly excited about the upcoming Dykema DSO Industry Group annual conference<\/a> in August 2025, which promises record attendance and in-depth conversations about the industry’s next chapter. \u201cThis industry is evolving fast, and it\u2019s an exciting time to be part of it,\u201d he said. <\/p>\n\n\n\n

From shifting M&A dynamics to the promise of AI-powered automation, Colao\u2019s insights highlight the importance of embracing technology and operational agility in a time of economic flux. Contact Planet DDS to learn how we help DSOs scale efficiently and deliver a stronger patient experience while positioning your organization for future success.<\/p>\n\n\n\n

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Learn More<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

As the dental industry settles into the second quarter of 2025, many leaders are still grappling with what Brian Colao calls \u201cThe Great Uncertainty,\u201d a prolonged period of market unpredictability…<\/p>\n","protected":false},"author":12,"featured_media":14917,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[128,562,54,8,80,1427,164,244,88,1412,138,1],"tags":[559,66,1314,27,13,43,169,325,1298,57,720,1217,540,136,152],"class_list":["post-14847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dso","category-artificial-intelligence","category-cloud-software","category-dental-cloud-technology","category-dental-industry","category-dental-service-organization","category-dentists","category-industry-trends","category-planet-dds","category-rcm","category-trends","category-uncategorized","tag-ai","tag-dental","tag-dental-groups","tag-dental-practice","tag-dentistry","tag-dso","tag-growth","tag-innovation","tag-ma","tag-planet-dds","tag-private-equity","tag-rcm","tag-scheduling","tag-staffing","tag-technology"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/posts\/14847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/comments?post=14847"}],"version-history":[{"count":0,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/posts\/14847\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/media\/14917"}],"wp:attachment":[{"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/media?parent=14847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/categories?post=14847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.planetdds.com\/wp-json\/wp\/v2\/tags?post=14847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}