Howard Speaks: Private Practice or DSO? That All Depends on You by Dr. Howard Farran, DDS, MBA

Howard Speaks: Private Practice or DSO? That All Depends on You 

by Howard Farran, DDS, MBA, publisher, Dentaltown magazine


In the United States, whether you need to be a dentist to own a dental office depends on each state’s regulations. Many states require that dental practices must be owned by licensed dentists, but there are exceptions where non-dentists can own a dental practice or hold shares in dental service organizations (DSOs) that manage multiple practices. These DSOs typically handle the business operations of the practice, allowing dentists to focus on patient care.

For example, in California, a dentist must own the practice, but in Arizona, non-dentists can own dental practices as long as they hire licensed dentists to provide the actual dental services. (Always check the specific regulations in your state or consult with legal professionals familiar with dental practice laws!)

An unbeatable expertise Call me old school and silly, but I think dental offices and dental schools should only be owned, operated and managed by dentists—otherwise, profits will win and patients will lose.

When I grew up in Wichita, Kansas, Boeing was the largest local employer. The CEOs were engineers by training: Phil Condit, CEO from 1996 to 2003, had a background in mechanical engineering and aeronautical engineering, and Alan Mulally, CEO of Boeing Commercial Airplanes from 2001 to 2006, had a bachelor’s and master’s degree in aeronautical and astronautical engineering. These leaders reflected Boeing’s old tradition of appointing executives with strong engineering expertise, given the company’s heavy focus on aerospace and advanced manufacturing.

The current CEO, David Calhoun, isn’t an engineer—he holds a bachelor’s degree in accounting. How’s that working out? In March, Boeing delivered fewer than 10 new jets to customers, although its backlog was a whopping 5,646 planes as of April 30.

Personal preferences
That said, not every dentist wants to be saddled with all the responsibilities of practice ownership! All the hours you spend hiring and managing staff, trying to develop marketing plans, and checking overhead and collectibles are hours you didn’t get to spend treating patients. DSOs, meanwhile, have their own experts in finance, marketing and HR, which can free you up to focus more on patient care, and they can also offer economies of scale when you’re buying supplies and equipment.

It comes down to individual choice and preferences: Some dentists, like me, place a heavier value on the autonomy that comes with owning your own practice. But others— particularly younger dentists—might prefer to have more structural support that helps them focus more on improving their clinical work.

No matter whether you’re an owner or associate, a private practice owner or a DSO disciple, you can always head to dentaltown.com/messageboard to find dentists who are willing to help you figure out the right way forward! With our online community of verified dental professionals, you never have to feel like you’re practicing alone.


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