DSO Development

1. Largest Retailer in the World

Our Task: Identify margin expansion opportunities and develop a roadmap in current locations and for future expansion and complete a global analysis on the viability of acquiring existing DSOs.

The world’s largest retailer had launched 12-location pilot health centers within their stores. These centers included a number of healthcare services including dental. Maeva was asked to develop a roadmap to help increase margins on the dental business while providing a roadmap that would include the ability to scale to hundred of locations.

Maeva deployed specialists to evaluate a number of functions within the business; recruiting (compensation analysis), billing, fees, regional operations, office-level operations/SOPs, C-Suite evaluation, scheduling, revenue cycle management, and the dental organizational structure within the larger entity. We developed a plan which contained 5 critical aspects of the business that would be the key drivers to accelerate their margin expansion. The presentation was finalized with the retailer’s dental team and presented to the organization’s Board of Directors for approval for expanding dental services as part of their overall company vision of integrating dental & medical.

The dental team received Board’s approval to move forward with all of Maeva’s recommendations!

2. Dental Insurer

Our Task: Evaluate viability, impact on per insured earnings, legal/financial/operational structure, and sourcing of DSO

One of the country’s largest dental Medicaid insurers engaged Maeva to work with company stakeholders and 3rd party vendors to evaluate the impact of per insured earnings, legal/financial/operational structure, and sourcing of DSO on the business.

The engagement was performed over numerous phases, in each phase, Maeva delivered positive results allowing Maeva to stay engaged in every phase of the project.

Phase 1: Viability. We need to answer the question: “Would it be legal for a dental insurer to have ownership interest in a DSO?” Upon completion and validation of that possibility, we launched a collaborative effort to examine doctor compensation and partnership models by assessing current models and applying dentists desired compensation structure, while navigating through the legal complexities of incentive compensation models, and providing the most competitive provider compensation package. Simultaneously, we launched an initiative to determine whether to pursue a buy and build strategy vs. acquiring existing Medicaid practices.

Based on the Insurer’s internal requirements and a needs-based analysis it was determined to pursue the acquisition of an existing platform. Our team worked with leadership to create the profile of the perfect DSO. We created target lists in desired locations and outbound initiatives were developed and completed. The Insurer identified a target that checked all the boxes and successfully moved forward with the acquisition.

3. Private Equity Firm

Our Task: Thesis Development & Operations Enhancement

When a reputable North American-based Healthcare-focused private equity firm was seeking an investment in the DSO space, they came to Maeva to assist them in evaluating the marketplace and to build the investment thesis, including operations and P&L, for presentation and approval from its Board of Directors.

Maeva worked with one of the firm’s partners in evaluating various sectors within dentistry, including general dentistry, individual speciality and multispeciality opportunities. In addition, evaluation of a buy and build strategy, we evaluated financial models for each opportunity including payor mix and its implications on exit multiples.

With Maeva’s guidance, The Board approved a buy-and-build general dental model. Today the DSO has 40+ successful locations.

One year into the investment, Maeva was engaged again to deliver a global operations assessment to better understand efficiencies and other opportunities. Maeva lead an on-site team and a team of experts in operations, HR, business development, financial reporting, and metric reporting and delivered recommendations integral to the success of scaling the business. Maeva delivered and reviewed its findings with the company’s Board of Directors who subsequently approved the implementation plan that established the DSO’s success going forward.