What does this DSO Model Really Look Like? - Part 3 of 6

Welcome back to our DSO blog series!  In our last blog post, we talked about the legal structure of a DSO and how you can engage Stock Legal to assist you with these services. 

So, what does a DSO model really look like?  You ask, we deliver! See below for a "Basic DSO Organizational Chart." 

What does this all mean?  In its simplest form, we create an entity to act as the DSO.  That DSO can have one member or many members.  That DSO enters into a services agreement with the clinic or clinics that it serves (that are typically owned by one or more dentists). That services agreement is similar to the services agreement that we talk about in this video, but we will talk more about the specifics of a DSO services agreement in our subsequent blogs in this series.

What can the DSO do?  All of the “back office” or non-clinical support, such as payroll, billing, accounting, collections, marketing, information technology, management, etc.

What can the DSO not do? All of the clinical activities, including: 1) patient evaluations, 2) diagnosis and treatment, 3) patient records, 4) clinical protocols, 5) hiring, training and terminating of dental professionals, etc. 

Often the first step in building out the DSO model is creating the DSO entity. The good news is that a DSO entity looks a lot like any other entity.  So as not to reinvent the wheel, we’ve written blog posts on the creation of organizational documents for LLCs  and corporations. 

If you’re considering a DSO and want more information or legal counsel, please contact us! We’re prepared to meet your timeline.

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