Deciding to affiliate your dental practice with a DSO is a significant decision that can offer many benefits, such as access to administrative support, improved technology and more time with patients. However, the process can seem a bit daunting at first. If you’re considering affiliating with a DSO, you may want to get a handle of what is involved so you can be prepared for what’s ahead. Here’s a general overview of the steps in the affiliation process.
- Early Conversations. Most affiliations begin with informal discussions between the DSO’s representatives and the practice owner. These conversations help both parties assess compatibility and mutual interest. For example, MDP uses these conversations to ensure that our values and culture align with those of the practice owner. At the same time, the practice owner might want to learn more about MDP’s ownership structure, which consists entirely of doctors and team members.
- Initial Evaluation. Once both the DSO and practice owner feel comfortable moving ahead, both parties sign a non-disclosure agreement to protect sensitive information. The DSO conducts an initial evaluation and begins preliminary due diligence. It’s likely that new questions will arise during this phase, and that’s okay! In MDP’s experience, maintaining open communication and transparency is vital to keeping everyone on the same page. A non-binding letter of intent is executed once a tentative agreement is reached.
- Due Diligence and Final Approvals. At this stage, the DSO will conduct more extensive due diligence to verify all legal and financial data. Once all details have been approved by both parties, a binding letter of intent is signed, and the definitive documents required for closing are prepared.
- Transition. The DSO and the practice owner work together to transition the practice into the DSO family. For MDP, this is a mutual process that will take whatever amount of time is necessary to make this a positive, comfortable experience for the team.
The steps above represent a brief and general overview of what’s involved in the affiliation process, though the specifics may vary among DSOs. You can review a more detailed overview of what the affiliation journey looks like specifically for MDP by clicking here.
Importantly, MDP believes fostering a strong connection and rapport is essential for a successful and enduring partnership. We prioritize creating a warm and friendly atmosphere from the outset of any potential partnership. Our informal discussions are as lengthy as necessary to ensure mutual understanding, comfort and a positive foundation for collaboration. Transparent communication and a commitment to a smooth transition for staff and patients is essential.
If you’d like to have a conversation with our team, don’t hesitate to reach out.
