Consolidation of the dental industry in US

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April 02, 2024

by a searcher in Montréal, QC, Canada

How private equity can buy and consolidate dental practices in the states (like California, Texas, Florida) that prohibit unlicensed entities and corporations to own a dental practice ?
Are there some workarounds to avoid those legal regulations ?

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
Wes is correct. You set up what is referred to a MSO or DSO (Medical Services Organization of Dental Services Organization). The MSO or DSO owns the business and handles the billing and all operations. There is a separate physician that owns the patients that contracts with the MSO or DSO to provide all of the back room support, In exchange the MSO or DSO collects all of the revenue and then pays the doctors salary and possibly a percentage back to the doctor. It is complex to set up but very common. You need to find an attorney that has experience in medical in your state and they should be able to help you. Good luck.
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Reply by a searcher
from Keller Graduate School of Management of DeVry University in San Francisco, CA, USA
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