Top 10 Benefits of IDSO Partnership in a Recession

Like it or not, the U.S. and your patients are facing a challenging future. Do your own research or listen to your “Financial Advisor” (stockbroker) but the reality is that the next year or two is not going to be easy. Consumers are already facing historic financial strain including credit defaults and rising inflation. To make matters worse, the IRAN adventure will be far more impactful than most folks understand today. Its not just about oil.

“The first step to getting rich is having cash available. You aren’t saving for retirement. You are saving for the moment you need cash.”

Over the last 35 years, tens of thousands of doctors have quietly partnered with Invisible Dental Support Organizations (IDSOs) to create personal liquidity at low tax rates. Doctors continue to lead their practice as owners for years or decades. Practice values today are still setting records, but only if your practice is growing.

Doctors access the deep resources of a larger, silent partner to grow their practice faster and more profitably with fewer headaches. Doctors are owners and make owner decisions with FULL autonomy if they choose the right IDSO partner.

Not all practices will qualify for a high value IDSO partnership, but yours might. Doctors today should understand the IDSO option to monetize a part of their practice value today.

Why Now Not Later?

If your collections decline, the IDSO partnership option evaporates until you return to at least two quarters of growth.

1. Liquidity is King. In a troubled economy, millions of dollars of cash in the bank create opportunities for life-changing investments.
2. Fewer Headaches. You will enjoy not managing the minutiae. Banking, accounting, payroll, benefits, compliance, credentialling, tax, legal, IT support and vendor and payer negotiations are all part of the IDSO support services.
3. Higher Reimbursement Rates. The good IDSOs are reimbursed at higher rates from insurance payers than independent dental practices. EBITDA goes up.
4. Lower Costs on Everything. 25% lower supply costs, 50% lower implant costs, 10% lower team benefits costs, 40% lower clear aligner costs. Savings all add to EBITDA.
5. Recruiting Support. Did you know that some IDSOs have dozens of full-time recruiters on staff helping their partner practices attract the best talent nationally?
6. New Patient Marketing. AI is changing the world in digital marketing and the IDSOs are adopting it now. How is your AI digital marketing strategy performing today?
7. Risk Free Capital for Expansion. The reason so many doctors under 50 are joining IDSOs today is to build bigger without personal risk. There will be many practice acquisition opportunities in the coming years. The IDSOs support your growth plan.
8. Size Matters in a Recession. IDSOs have professional management to support their partner practices both clinically (AI implementation) and in operations.
9. Upside in Your Retained Ownership. In every IDSO partnership the doctor retains ownership in either their practice, the IDSO or a combination of both. Higher practice EBITDA increases the value of your ownership.
10. Peace of Mind. Dentists are an island. The future of your practice, team and your family’s security rests on your shoulders alone. The risks are growing.

Summary

Partnering with an IDSO is not possible nor right for every doctor. But you should at least fully understand the IDSO option and the value of your growing practice today. If it is not growing next quarter, it will be a moot point. Smart investors sell into rallies and buy dips. We are still in a rally today. It is probably time to consider monetizing a part of your life’s work.