remember--If a doctor is pulling a DSO into their practice , it usually is because the partnership is something they want ; but if the DSO is working overtime to convince a doctor that joining a DSO would be good for their practice , it might not be the best partnership . Having a solid foundational relationship and mutual trust are important . Set your criteria and stay committed to it . Stay true to your core tenets ; straying from them potentially adds additional risk , and with that risk comes the chance of suboptimal results — or worse , failure .
Lessons learned : Acquisition stories
Finalizing acquisitions is sometimes fraught with uncertainty . It ’ s important that all involved “ stay in their own lanes ” in order for the acquisition to succeed . While poring over financials and operational plans are important , most DSOs agree that the most important variable is the practitioner himself / herself . “ You can do all the due diligence required , but ultimately it boils down to art , science , and a bit of luck ,” noted George Radigan .
Case in point was the cautionary tale shared by one of the panelists who received a referral for a potential practitioner . After doing all of his due diligence to vet the practitioner , including checking his credentials with state boards , making numerous queries , and conducting other behind-the-scenes checks , the DSO finalized the deal with the doctor , who seemed to be a pillar of his small community . One week after joining the DSO partnership , the practitioner was arrested on felony charges . The moral of the story : “ Lean in ” as much as possible during your background checks of potential partners — and know that it ’ s still a leap of faith .
Dental Panel Series
Hear the latest trends and insights from industry leaders , peers , and partners during First American ’ s Dental Panel Series . If you would like to participate in future discussions , please contact Zack Scribani or Samantha Nunn .
Assistant Vice President , Dental Division 585.643.3225 | zack . scribani @ faef . com
Assistant Vice President , Dental Division 585.643.3213 | samantha . nunn @ faef . com