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The Operating Review › Industries › Healthcare › Dental groups and DSOs

Healthcare — Dental groups and DSOs

Per-location P&Ls where doctor compensation formulas differ by acquisition vintage and nobody has modeled the aggregate.

A dental group is a collection of practices that were each somebody's life's work, bought at different times on different terms. The compensation formula, the fee schedule and the supply arrangement usually came with the building, and consolidating the accounting does not consolidate any of them.

These are the terms the review uses with you. A page written for healthcare generally would not contain any of them.

Where it concentrates here

Specific to dental groups and dsos, not to healthcare generally. Each is concentrated — a single agreement, a single code, a single account nobody reviews — which is why a sample of the operation tends to miss it and a full pass tends to find it. They are not findings from a named engagement.

  1. PPO fee schedules loaded into the practice management system at the wrong effective date, so every claim in the interval is adjudicated against a rate the group did not agree to.
  2. Associate and selling-doctor compensation — percentage of collections, percentage of adjusted production, guaranteed minimums — differing by acquisition vintage, with the aggregate cost of the guarantees never modeled against a slow quarter.
  3. Unapplied credits and patient overpayments accumulating on ledgers per location, which is a refund obligation rather than revenue, and in some states an escheatment one.
  4. Hygiene capacity managed as an appointment book rather than as a margin line, so a chair running half full disappears inside a location's total production.
  5. Laboratory invoices arriving per case and posted to location overhead rather than to the procedure, so the crown that needed three remakes costs what the one that went straight through costs.

Where this data actually lives

Named because it changes what the intake asks for. An extract from one of these has known gaps, and the review is built around them rather than surprised by them.

See the proposal and the price Talk it through first

The proposal is written for healthcare as a whole — the sequence, what we would need from you, and what it costs for your number of operating units. What is on this page is what we would additionally expect to find in dental groups and dsos.

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