Chip Fichtner
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Chip Fichtner

Flash Update for Orthos!

by | Mar 19, 2025 | Insights

Smile Doctors, the largest of the 14 ortho only IDSOs with 400+ practice partners has just completed a deal to acquire MyOrthos, one of the larger Ortho only IDSOs with 80+/- partner practices. This is a relatively rare occurrence in the IDSO world as typically IDSOs are recapitalized by new investors, not acquired by other IDSOs.

Given the national ortho case start declines of 8% in 22, 6% in 23 and another 5% in 24, many of the ortho only IDSOs are unqualified to bid on LPS clients and are on The Blacklist.

Fortunately, growing orthos are still setting record values in an LPS advised IDSO partnership process. The high bidders today are the pedortho IDSOs and the Dental Trifecta IDSOs (pedo, ortho, OMS). They have weathered the case start growth issues better than the Ortho only IDSOs due to their captive referrals from pedos in the same family.

Orthos should be concerned about the stressed consumer today as shrinking ortho practices will not achieve high values in an IDSO partnership if they can do an IDSO partnership at all. Stressed consumer signs are flashing red daily. Join our webinar “The Biggest Risk to Practice Values in 2025” on March 20. Some signs to be concerned about:

  • Consumer credit card balances are at record highs despite record high interest rates.
  • Auto loan default rates are at record levels
  • January Consumer Spending data shows the largest drop in four years
  • “Luxury Market” consumers spending dropped by 9.3% in February
  • Retail spending YTD on apparel is down 12% YOY and Athletic Footwear spending dropped 22%
  • The Conference Board’s Consumer Confidence Index last month recorded the steepest decline since Aug 2021
  • ALGN, the makers of Invisalign, shares have declined from $725 to $161

You want to consider an IDSO partnership NOW, not when your case starts are declining, and they might…

Chip Fichtner
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