“Because dentistry isn’t just about teeth—it’s about running a business that makes cents and dollars!”
Let’s get one thing straight. The DSO business model (Dental Support Organization) doesn’t have to mean selling your soul to a corporate overlord. Nope, we’re talking about building a sustainable, profitable, patient-centered practice without becoming a cog in someone else’s machine. And we’re spilling all the secrets right here.
Rethink the DSO Model: Membership Plans Are the MVP
First off, let’s call it what it is—traditional DSOs lean heavily on PPOs and the chaotic rollercoaster of insurance claims. But here’s the kicker: you don’t have to follow that formula. Instead, lean into a patient membership plan to create predictable, recurring revenue.
Why Membership Plans Are a Game-Changer
- Recurring Revenue: Cha-ching! Patients pay a monthly fee, and your practice gets steady cash flow.
- Loyalty on Lock: Membership patients stick around longer, making them your bread-and-butter crew.
- Higher ARPP (Average Revenue Per Patient): Membership patients spend up to 4x more than insurance-based patients.
DSO Business Model: Cut the Cord with PPOs
Insurance companies aren’t your BFF—they’re more like that annoying friend who always mooches off you. PPOs have invisible costs (read: endless write-offs and admin headaches) that suck the profitability out of your practice.
Here’s the Move:
- Renegotiate PPO Contracts: Work with the big dogs like Ben Tuinei from Veritas Dental Resources to get better reimbursement rates.
- Drop the Dead Weight: Identify the lowest-paying PPOs and say buh-bye.
- Convert Insurance Patients to Members: Use BoomCloud™ to transition PPO patients to a membership plan. Patients pay you directly, no insurance company red tape required.
How BoomCloud™ Powers the Next-Gen DSO Model
Running a membership program isn’t just a “nice-to-have” anymore—it’s the backbone of a successful DSO business model. And BoomCloud™ is the ultimate toolkit for scaling your membership plan to the next level.
What BoomCloud™ Does
- Tracks Active Members: Know exactly who’s in your program and what they’re paying.
- Automates Billing: Because chasing down payments isn’t what you signed up for.
- Gives Predictable Revenue: No more wondering what next month will bring—BoomCloud™ makes it rain steady income.
Here are some more DSO Dental Software tools.
Case Study: How 7 to 7 Dental Nailed the Membership Model
Let’s get real with some numbers, shall we?
The Setup
- Practice: 7 to 7 Dental
- Membership Program: $45/month per patient
- Active Members: 1,824 (and counting)
The Results
- MRR (Monthly Recurring Revenue): $82,080
- ARR (Annual Recurring Revenue): $984,960
- Patient Spend: Membership patients spent an average of $2,300 annually—over 4x what PPO patients brought in.
How They Did It
- Started Small: They launched their program with just a handful of patients and used targeted marketing (think PPC ads and direct mail) to grow.
- Used BoomCloud™: Automated billing and member tracking gave them more time to focus on patient care.
- Went Out of Network: They ditched the low-paying PPOs, converting those patients into loyal members.
The Patient Experience Revolution
Here’s the kicker—patients LOVE membership plans. Why? Because they get transparency, simplicity, and value.
- No Surprise Bills: Patients know exactly what they’re paying.
- VIP Vibes: Membership patients feel like part of an exclusive club.
- More Treatment Acceptance: When finances are simplified, patients say “yes” to more care.
The New DSO Business Model Formula
So, what’s the secret sauce? Here it is:
- Launch a Membership Program: Use BoomCloud™ to manage, scale, and automate it.
- Renegotiate Insurance Contracts: Or drop the worst offenders altogether.
- Enhance Patient Experience: Give your members an experience that makes them rave about your practice.
Ready to Rewrite the Rules?
The DSO business model doesn’t have to be about losing control or settling for razor-thin margins. By leaning into membership plans, cutting the cord with insurance companies, and using tools like BoomCloud™(Book a Demo), you can build a practice that’s wildly profitable and fiercely independent.
So, are you ready to stop playing by someone else’s rules and start running the show? Because the time to rethink the game is now. Let’s do this.
