Dawson Modern Dentistry has 1 primary location. Results: +37.8% revenue growth.
For a DSO or dental group with 5-10 locations, those same operational improvements multiply.
How Results Scale Across Locations
If one location achieves 37.8% revenue growth from operational improvements:
Location 1: $800K baseline → +$300K growth
Location 2: $800K baseline → +$300K growth
Location 3: $600K baseline → +$225K growth
Location 4: $700K baseline → +$265K growth
Location 5: $750K baseline → +$285K growth
Total baseline: $3,650K (5 locations)
Total growth: +$1,375K (37.8% average)
The Centralization Advantage
DSOs can centralize certain Reach functions:
Centralized Call Center: One team handles inbound calls for all 5 locations. Better efficiency, 24/7 coverage.
Centralized RCM: One team verifies insurance and processes claims for all locations. Consistency across locations.
Centralized Recall: One team calls overdue patients for all locations. Economies of scale.
Result: Lower cost per location, better consistency, faster implementation.
Cost Structure
For single location (Dawson’s model):
- Two team members = $3,990 monthly = $47,880 annually
- Cost per location: $47,880
For five-location DSO with centralized support:
- Four team members (centralized) = $7,980 monthly = $95,760 annually
- Cost per location: $19,152
- Savings per location: 60% cost reduction vs. single-location model
The Math for 5-Location DSO
Total baseline revenue: $3,650K monthly
Growth from operational improvements: 37.8% = $1,375K monthly = $16,500K annually
Cost of centralized Reach support: Four team members = $95,760 annually
Net benefit: $16,500K minus $95,760 = $16,404,240 annually
ROI: 17,121% in Year 1
Synergies
Centralized functions create additional benefits:
Consistency: All locations follow same RCM process, same call handling, same recall protocol.
Efficiency: Centralized team gets faster at their jobs. Quality improves.
Scalability: Adding a new location requires minimal additional cost.
Knowledge: Centralized team learns best practices from all locations. Share wins.
Implementation for DSOs
Phase 1: Implement at largest location first. Prove results. Typically 60 days.
Phase 2: Expand to 2-3 additional locations. Refine processes.
Phase 3: Centralize common functions (RCM, calls, recall).
Phase 4: Scale to remaining locations.
Performance Metrics for 5-Location Group
Before:
- Average DSO: 45 days across all locations
- Call answer rate: 60% average
- New patients: 200 monthly across group
- Staff turnover: 25% annually
After (6 months):
- Average DSO: 25 days across all locations (44% improvement)
- Call answer rate: 75% average (25% improvement)
- New patients: 320 monthly across group (60% increase)
- Staff turnover: 15% annually (burnout reduced)
Why DSOs See Faster Results
DSOs have:
- Multiple locations to spread costs
- Centralized infrastructure to leverage
- Better data and metrics
- Ability to hire dedicated teams
Common DSO Challenges
Different systems at different locations: Reach team must learn multiple systems. Solved by standardization initiative.
Different provider preferences: Each dentist wants things done their way. Solved by setting clear standards.
Communication across locations: Reach team must coordinate across multiple sites. Solved by clear protocols.
FAQ
**Q: Can I centralize all functions?**
A: Calls and RCM, yes. Clinical support (hygiene coordination, treatment planning) is better local.
**Q: How many locations does it make sense to centralize?**
A: 3+. At 3+ locations, centralization becomes efficient.
**Q: Should locations have dedicated staff or share?**
A: Share centralized functions. Keep clinical staff local.
**Q: How do I know if my DSO is ready?**
A: If locations have similar workflows and reasonably consistent systems, you are ready.
**Q: What if locations are in different time zones?**
A: Centralized call answering can still work. Schedule team members across time zones for coverage.