Avoiding Pitfalls When Transitioning to a DSO

Dear Reader,

Let’s talk about a topic that often gets brushed under the rug in the excitement of signing a lucrative DSO deal: the pitfalls. Believe me, I’ve seen it all. From the dentist who thought a handshake was enough to guarantee post-sale autonomy, to the staff blindsided by new policies and patients jumping ship. These horror stories are avoidable—if you know what to look out for.

Case Study #1: The “Handshake Agreement” Nightmare
Dr. Smith (not his real name) ran a highly profitable practice. When a DSO came knocking with a juicy offer, he jumped. The deal was rushed. “Don’t worry,” they said. “Your terms will stay the same.” Spoiler alert: they didn’t. Dr. Smith lost decision-making power, struggled with rigid policies, and eventually left disillusioned.

Lesson Learned:
Get everything in writing. Autonomy, patient care protocols, employment terms, even seemingly minor details. Negotiation isn’t a dirty word—it’s a necessity. Spell out the terms, have a lawyer comb through it, and know what you’re signing up for.

Case Study #2: The “Culture Shock” Staff Exodus
Another practice I consulted with made a textbook mistake: they didn’t bring their staff into the loop until after the ink was dry. When the DSO introduced new operational procedures, half the team quit within three months. Patients noticed. Morale plummeted. The once-thriving practice took a serious hit.

Lesson Learned:
Transitioning to a DSO is more than just changing ownership—it’s a cultural shift. If your team doesn’t understand or buy into it, you’re in for trouble. The solution? Open communication, transparency, and involvement from day one.

Preparing Your Staff and Patients for a DSO Transition
So, how do you do it right? Here’s how to make sure your transition to a DSO keeps everyone—staff, patients, and yourself—happy.

1. Communicate Early and Often
   Dentists, let me be blunt: Your team is your lifeline. If they’re blindsided, they’ll resist—or worse, leave. Communicate your intentions as soon as possible, and not just with a “Hey, I’m selling to a DSO” memo. Lay out the benefits for them: better career growth, less administrative hassle, potential new perks. Allow them to ask questions, air concerns, and be part of the process. Change is scary—especially when it’s a big one.
   
   
2. Involve Key Staff Members in the Transition Process
   Bring key staff into the fold and make them champions of change. They can help ease the fears of the wider team, translate the DSO’s goals into practice-friendly terms, and help implement changes smoothly. Your receptionist, office manager, hygienist—they know what makes your practice tick. Lean on them.
   
   
3. Create a Transition Plan and Share It
   I’ve seen dentists breeze into a DSO transition thinking everything would stay “business as usual.” It doesn’t. There will be new processes, software, workflows, maybe even new faces. Map out what changes to expect and when, then share that roadmap with your team. Transparency turns anxiety into buy-in.
   
   
4. Patient Communication: It’s All About Reassurance
   Your patients don’t care that you got a great deal—they care about the care they’ll continue to receive. I worked with a practice that didn’t inform patients about the change until too late. Rumors flew. Patients worried their favorite dentist would be gone or care quality would dip. A mass exodus followed.

Here’s How to Avoid That:
Be upfront. Send a letter explaining the change, why it’s happening, and how it benefits them (better technology, more treatment options, etc.). Reassure them that you—and your standards—aren’t going anywhere. Face-to-face conversations with concerned patients work wonders too.

5. Keep Your Promise
   If you tell staff they’ll see better career paths, follow through. If you tell patients they’ll get enhanced care, deliver it. Trust takes years to build and moments to destroy. You don’t want to undermine all the goodwill you’ve accumulated over your career.

In Closing…
Transitioning to a DSO is a journey. Done right, it can unlock wealth, opportunity, and relief from administrative headaches. Done wrong, it can be a nightmare. Communicate. Negotiate. And remember that a smooth transition doesn’t just happen—it’s crafted with care, intention, and the right guidance.

Ready to make it happen? Let’s talk and ensure your transition is a success story, not a cautionary tale.

Sincerely,

Stan Kinder

and Your Team at Everything DSO