Redefining Consolidation: How Phase 1 Equity is Paving a New Path
In recent years, consolidation has become a defining trend in the healthcare industry, with orthodontics seeing a marked shift toward larger, consolidated platforms. This transformation is driven by various factors: increased competition, rising operational costs, evolving patient demands and technologies, and regulatory complexities. While consolidation can present opportunities for growth and shared resources, it often raises concerns among practitioners about autonomy, clinical integrity, and the patient experience.
Understanding Consolidation Trends
Traditional consolidation models in the dental and orthodontic space often involve acquisition by DSOs or corporate-backed groups. For many doctors, joining these groups offers access to business expertise, administrative support, and improved purchasing power. However, not all consolidation strategies are created equal and largely impact doctor experience.
Critics often highlight that traditional consolidation can come at the expense of clinical autonomy, with corporate mandates influencing treatment decisions and patient care. Additionally, the lack of doctor-led governance may lead to misaligned priorities between clinicians and corporate stakeholders, ultimately affecting practice culture and patient satisfaction.
Phase 1 Equity: A Better Way Forward
Phase 1 Equity has redefined the consolidation landscape and the options for doctors thinking about exit planning and succession with a model that prioritizes doctor ownership, leadership, and governance. Here’s how our approach differentiates itself in the orthodontic market offering doctors a vastly different option:
- Doctor-Owned and Led Governance Model
We believe that those closest to patient care should guide the decision-making process. Unlike most DSOs, Phase 1 Equity emphasizes a doctor-driven model, ensuring that clinical care remains in the hands of those who know it best and have put the blood, sweat and tears into their practice: practicing orthodontists. This approach preserves clinical integrity, aligns incentives with patient care and outcomes, and fosters a collaborative culture focused on long-term excellence. - Equity Partnership Structure
Maximizing your outcome from a future sale Unlike DSOs, we partner with our practices to prepare them for a collective future private equity sale and look to partner with doctors who aren’t looking for a sale of their practice today, rather are intrigued by planning for their future exit today. Orthodontists retain 100% of the equity in their practices while they work with us to optimize their business and capture the future growth of their practice – before selling to private equity. This approach results in 2-3x the amount an orthodontist would receive in a DSO transaction.
- Tailored Solutions for Practice Growth
We understand that every practice has unique needs and goals. Our model is designed to offer flexible solutions tailored to each doctor partner’s aspirations, from expanding patient reach to enhancing operational efficiencies. Our support extends beyond basic administrative tasks, focusing instead on meaningful practice growth, mentorship, and professional development. Unlike most DSOs, we take a consultative approach to our services; we teach you about efficiencies and why they matter to your bottom line, and you can pick the strategies that make the most sense for your practice. - Commitment to Clinical Autonomy and Quality of Care
The primary concern of many doctors considering joining a DSO is the potential loss of control over patient care. Our model preserves clinical autonomy while providing the resources and expertise needed to thrive in today’s competitive landscape. Doctors can continue to practice according to their values and standards while benefiting from the strength of a collaborative network. - Long-Term Vision and Stability
Phase 1 Equity’s approach to partnership is rooted in a long-term vision for the orthodontic industry. Our focus is not on quick returns but rather on building sustainable growth alongside our doctor partners.
The alternative to the traditional DSO
In a consolidating market, it is crucial for doctors to consider what kind of partner best aligns with your values and long-term goals. If you’re looking for a model that offers independence, equity, and partnership rooted in patient care, Phase 1 Equity represents a transformative alternative to a DSO.
Final thoughts
As DSOs continue to move into orthodontics, partnering with a group that values your expertise and preserves your autonomy has never been more important. We are proud to stand apart with a model that elevates doctor leadership, aligns everyone’s interests, and ensures exceptional patient care remains at the forefront.
Ready to unlock your practice’s potential without a DSO sale? Let’s chat. Email us to learn more.