One of our dental practice clients was constantly growing, and its next goal was to develop into a full DSO. The client asked MWA to consult on the decision of whether a management company would be necessary to oversee the DSO and how that company should be structured.
The client had heard about other dentists using management companies for their DSOs, but it was unsure what functions such a company performs, and how – or even if – a management company should be incorporated into its dental practices.
The Right Solution
As MWA worked through the client’s entire business plan and gained a full understanding of the client’s ten-year vision for the entire company, the entity structuring began to take shape. Based on the client’s particular operational structure and the exit plan that we helped to develop, we decided that a management company acting as a service provider to the practices and an employee-leasing organization would provide tremendous advantages. We modeled out many scenarios that would incorporate the DSO management fee and the employee-leasing fee before identifying a final, easily scalable solution that wouldn’t require an overwhelming administrative burden.
Above and Beyond Results
We not only explained to the client how it could use a management company in its practices, we also used a holistic approach to develop a complex structure for the client that will enable the DSO to continuously expand and achieve the owner’s long-term goals.