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Chip Fichtner
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Chip Fichtner

New IDSO Partnership Opportunities for Periodontists in 2024

by | Apr 8, 2024 | Insights

Contrary to popular belief, dental practice values in the U.S. are still setting new records in 2024. Yes, interest rates have impacted some Invisible Dental Support Organizations (IDSO) but just in Q1 2024, over $3.3 BILLION of new capital/credit was invested in IDSOs across the country.

LPS clients usually have six or more qualified IDSO bidders from which to choose their IDSO partner. In Q4 2023 we completed multiple partnerships for periodontists across the U.S., including one for a growing, multiple doctor Perio practice, in a mid-western state, at over 10x EBITDA.

New Options for Periodontists

In 2024, periodontists have many new options from which to choose their ideal IDSO partner. Pre-Covid, perio practices were particularly attractive to multi-specialty IDSOs eager to find a perio within their GP footprints to which they could refer their patients.

Today, Perios have dozens of qualified options from different types of IDSOs eager for great Perio practices in all 50 states. IDSO types eager for perio partners include:

  • Multi-specialty (predominantly GP)
  • Perio only
  • Surgical Trifectas (perio, endo and OMS)
  • OMS IDSOs adding Perio practices.
  • Implant focused

Each IDSO is different and many are not qualified to bid on LPS clients. However more eager bidders with fresh capital are driving up values to new heights in 2024.

There are two interesting drivers for value in Perio in 2024:

Half Price Implants and up to 25% Lower Supplies Costs

The IDSOs are paying half or even less than you are for implants. Their volumes achieve massive discounts unavailable to independent dentists. You will not be asked to switch from your favorite implant, but you will get to pay far less for them.

Higher Payer Reimbursement Rates

Many of the larger IDSOs are achieving higher reimbursement rates due to leverage across their large networks of practices. Some are as much as 20% more than independent dentists are paid.

Summary

With Perios as young as 35 now partnering with IDSOs, doctors of all ages should understand the potential benefits of IDSO partnership and what the new value of their practice might be in 2024.

Chip Fichtner
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